Source: NEW BALANCE AND KAWHI LEONARD UNVEIL ‘THE KAWHI III’
The original title for this was going to be “Why the Kawhi III is the First Modern Retro Signature by Any Brand,” but then I would have had to write my way out of that and nope. The reason I was going to title the post in that way was because of the print and materials on this new drop from New Balance. I could still use that title, but I think I have a more fitting title. New Balance has been riding the wave of retro footwear and a blend of collaborations to gain considerable ground in the sneaker market. The Kawhi Series hasn’t necessarily hit the target and become a part of sneaker discussions and outside of signature athletes the models aren’t on the feet of high school athletes or collegiate programs. This contributes to a lack of readily available sales information. A quick glance through third party data on the keyword “New Balance Kawhi sneakers” delivers these numbers for 2/4/21 to 12/31/22: 3,355 pair sold at an average price of $100.47. On StockX listings have to be searched individually but selecting the most sold model: Kawhi 2 New Money, delivers 295 pair sold over 12 months at an average price of $181.00. The model retails at $160 and the average is basically retail plus tax. A combination of factors has led to slow sales. Availability is the first issue. The sneakers aren’t readily available in retail doors. Which is probably a strategic plan by New Balance to control inventory and gain better sell through. In my region, the New Balance store carries the Kawhi, but the store has an antiquated visual appearance, and the customer service isn’t great. Its family owned and you can sense that the store doesn’t have a diverse consumer base because of how awkward the engagement is by the people there. The Kawhi has very little merchandising in that retail location. That’s not on topic, so let’s keep going.
Kawhi is one of the best players in the world, when he’s healthy. Unfortunately for New Balance, Kawhi has been injured and the Clippers haven’t been must see tv. Kawhi’s demeanor initially fit the brand. His understated lack of excitement is no longer capable of holding the attention of the NBA fan and what looks like elements of flat affect, when compared to rising stars who are highlight reels leaves a bit to be desired. Basketball sneaker purchases as casual wear are much rarer than in the past. Those purchases when they are for functionality are emotionally driven. Marketing around Kawhi has been excellent from NB, but the quirky, once every blue moon laugh or joke from Kawhi isn’t enough to drive the type of engagement created by LaMelo, Luka and Ja. BUT… in the last few years the Paul George sneakers have been some of the best-selling basketball kicks on the market. PG is a lot like Kawhi. He isn’t a very emotional player, and he doesn’t have the best marketing from Nike, which kind of kills my point here. Actually, it doesn’t. The PG like the Jordan Luka and the upcoming Ja 1 are all 110-dollar basketball shoes with sleek low – mid cut designs. They are lightweight performance sneakers that don’t look like bulky hoops shoes. The PG and Luka sell well because of design and performance aesthetics at the right price.
The Kawhi 3 abandons the high cut look and is a much more streamlined design. This gives the model exactly what basketball sneakers need to hit the casual demographic, which is once again growing. I’ve written extensively about the seasonality of hoops sneakers, but there are instances when sell through on hoops sneakers is equivalent to some casual models. In a recent post I explained how Nike resurrected interest in their basketball shoes after years of decline. I’ve written a short 27 page report on why Ja Morant’s new signature sneaker is on trend and will be Nike’s best-selling signature model when it releases.
The JA 1 Continues Nike’s Recognition of Where Basketball is in Today’s Marketplace
3 Ways the Kawhi III is like the Air Jordan 3 and 1 Reason it Might Not Hit
- The Kawhi 3 is the first model from New Balance and Kawhi to drop the top. The first two iterations of Kawhi’s signature series were high cut performance-first models. The Kawhi 3, like the Air Jordan 3, deviates from high cut performance to low-mid cut performance design.
- The Jordan 3 was revolutionary in that the elephant print design gave texture to a sneaker that if it arrived in all white, could have been a boring flat design. The Kawhi 3 is utilizing two elements inspired by Jordan: texture and a cement print on the midsole. The obvious bred colorway is there on this first release labeled the Alpha Predator. An interesting comparison for this sneaker lies in one of the surprise solid selling sneakers from Jordan Brand last year, the Jordan Point Lane. The Point Lane was based on the Jordan 3, 6 and 11. This Kawhi could easily be informed by the Jordan 3, 6 and 11 IE, but take a second to look at both sneakers and the similarities almost jump out. Does this mean the Kawhi 3 will follow the success of the Point Lane?
3. “A trio of insights from Kawhi guided New Balance designers in the development of The KAWHI III: responsive, explosive, and lightweight.” Like the Jordan 3, K3 utilizes traditional basketball materials as opposed to the knit construction that has dominated basketball sneakers recently. The Jordan 3 featured tumbled leather, but it was one of the first sneakers to utilize elastic bands to lock the tongue into place. The Kawhi 3 blends synthetic leather panels, but also has a “seamless half-bootie that connects directly to the tongue” creating a lockdown fit. While this 3rd aspect is a matter of function, when the Jordan 3 arrived it was revolutionary. The Jordan 3 delivered the first instance of Visible Air to a basketball sneaker. The Kawhi 3 is the first use of New Balance’s Energy Arc technology in basketball. Hence the 160-dollar price point for this flagship model from the brand. The increase from 140 and 150 for the first two models from Kawhi to 160 is the reason I added the one thing that might make it miss.
One Reason the Kawhi 3 Might Not Hit
The shoe holds similarities to one of the best-selling, non-retro basketball sneakers from Jordan Brand the Point Lane. The Point Lane retailed at 140, but it was not a performance model. It was a lifestyle sneaker. The references to signature Jordan models helped the Point Lane reach its target audience. The Alpha Predator Kawhi 3 doesn’t have the same lineage and it comes in at a higher price. The K3 does move the signature line towards the on-trend lower cut basketball shoes which have been performing very well for the Swoosh. In my Ja report I delivered a ton of data sets showing the average sale price for signature models. The Kawhi 3 arrives at a higher price than all of Nike’s signature models except LeBron and the Jordan numbered flagship, 200 and 185 respectively. The LeBron signature model has seen a resurrection due to its redesign. The Jordan 37 has been flat in sales, like the LeBron line was for years when it was designed like a performance basketball boot instead of a sneaker. In my report I gave the sweetspot for SRP and the Kawhi 3 rings up above that pricepoint. It is easily the best-looking model in his signature line, like the Jordan 3 was and is in Jordan’s line, but with the KD at 150, Ja 1 releasing at 110, the Luka at 110, the Zion at 120, the PG at 110, the Puma Melo at 120, the Kawhi enters the arena priced at a number which could see the sneaker sitting 160.
The sneaker drops on February 10th. In my report I didn’t list the seasons for sales since the data reports show when the sales spiked for every shoe listed. This release is timely and if it ramps up heading into March, the Kawhi III could overcome its pricing issues to be New Balance’s true flagship… if the Clippers star continues to play and New Balance creates a better delivery system. What do you think of the III?