FILA’s Original Tennis LX & Centa Attempts to Move the Brand from Discount to Luxury

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Source: Introducing FILA’s Original Tennis LX & Centa

Greats Brand, CLAE, COMUNITYmade and BrandBlack are smaller brands that focus on an elevated consumer experience. The brands are also creating footwear based on classic silhouettes with subtle, but important differences. Greats and CLAE produce a mix of luxury and sustainability, while COMUNITYmade is handcrafted, made in the Downtown Los Angeles and focused on sustainability through one of the most efficient supply chains in footwear. BrandBlack has committed to utilizing top-notch construction in their footwear. They are working towards creating what I label luxury performance. These brands have encroached on established companies as more people look to casual athletic styles than performance.

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Fila, in North America, has not retained it’s elevated status via tennis (the sport), or their sponsorships. The brand can be found in discount retailers in strip malls and malls that are a shadow of what they once were. Stores like Citi Trends that offer school uniforms usually come to mind when Fila is mentioned. Which creates an interesting dilemma for the brand.

A search for Fila on eBay delivers 103,000+ results; a blend of apparel and footwear. Looking at the sell through on the third party for Fila shows 23,000+ items sold. Pulling an average of ten sold sneakers the shoes are:

  • 22.68
  • 27.50
  • 20.46
  • 67.00
  • 40.00
  • 59.99
  • 44.95
  • 54.95
  • 49.95
  • 39.95

An average price of $42.74

The majority of products sold on eBay consists of apparel, which has a a higher value in most instances than the footwear, the shoes listed above are primarily Disruptors and low end models. On StockX there are over 2000 Fila sneakers listed. There isn’t an immediate method of looking up what recently sold by brand, but taking the first 4 listings:

  • Fila 96 White 2019 (Grant Hill) – The average price is 91.00 on 99 sales over 12 months. That’s almost 30 dollars below retail.
  • Fila Disruptor 2 White Navy Red – The average price is $50.00 on 242 sales over 12 months. That’s 145 dollars below retail.
  • Fila Disruptor 2 Premium White Navy Red – The average price is $46.00 on 45 sales over 12 months. That’s 145 dollars below retail.
  • Fila 95 Grant Hill 1 OG 2013 – The average price is $136.00 on 18 sales over 12 months. That’s 46 dollars above retail.
  • Fila Tennis 88 Biggie Smalls Cream – The average price is $146.00 on 239 sales over 12 months. That’s 50 dollars above retail.

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These elevated Tennis LX and the new Centa enter a complex marketplace for Fila. Fila has been working hard to rebuild and elevate their brand from discount product to a brand that has some cache. The history is there, but after two years of accelerated growth where the Disruptor at one point in 2018 was selling for 200.00 bucks a pair, the company overestimated the value of streetwear and hype. They didn’t hold back on production and as more pairs became available, the brand heat diminished leaving retailers with a ridiculous amount of inventory that has been on promotion since. This explains the ability for models to be sold for 50 dollars on third party platforms.

It’s very similar to the adidas TRESC Run. A beautiful shoe that is now selling for 19.99 at various retailers. The SRP was 130.00.

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Brands are constantly adjusting to the market, and with the problems at retail, it becomes difficult to recapture momentum and remain relevant to the consumer spending 100+ on sneakers. With so many options available from companies focusing on quality over quantity, is it possible for Fila to recapture that heat they had in 2017-2018? If the info from StockX is an indicator, it’s possible. There are models for the brand that garner attention. These releases are not attached to a story like the Tennis 88 once worn by Biggie, but maybe Fila can begin a turnaround. There recent sponsorships are quality narratives, but right now the brand is investing in sponsored ads on social and that is a bad sign. No sneaker sites are carrying the story of these drops and pulling customers from the discount racks in stores and online will be a hard task.

What do you think about this release and Fila’s position in the market?

 

 

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