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“If you think about shoemaking, it largely hasn’t changed for nike air max shoes decades, arguably centuries, because it’s cut material that is sewn together, ” Parker said. “There is no more cutting and stitching with this. The most labor intensive part of the footwear manufacturing process is gone from the picture. ”The manual work needed to attach pieces is the main reason sneakers are made in Asia’s cheaper labor markets, according to Matt Powell, an analyst for SportsOneSource. Without that step, Nike could reduce production time by making shoes in the U. S. and other major markets.

Nike makes 96 percent of its shoes in nike air huarache sale Vietnam, China and Indonesia, according to a public filing. “One of the critical issues our industry hasn’t figured out is how to get products to market more quickly, ” said Powell, who is based in Scarborough, Maine. “The biggest time in the life cycle of getting a shoe to the U. S. is the time it spends on a boat coming from Asia. If you could eliminate that, that’s a huge chunk out of the time line. ”The flexibility created by cheaper, more automated shoemaking could eventually lead to a day when a person can visit a Nike store and have their foot scanned. The customer would be able to design the shoe by color and style down to a single thread. The software would then use the information to make personalized shoes. “The potential for this is almost infinite, ” said Denson, who started as a Nike store manager in 1979. The impact of shoe weaving on Nike’s bottom line will depend on whether it meets consumers’ demands for performance and style, according to Sam Poser, an analyst for Sterne Agee & Leach Inc. in New York. Flyknit is also just one shoe at a company with about $23 billion in annual sales, he said. Flyknit may help Nike boost gross margin, the percentage of sales left after costs of goods sold, which has narrowed for three straight quarters and is projected to decline for a fourth owing to nike air max 2015 sale rising labor and material costs.

“The margins can be great, but if it doesn’t sell they’ve got a problem, ” said Poser, who recommends buying Nike shares. “These are all steps in the right direction, but individually it’s not material” to the company’s short term results. Nike’s approach to innovation is to develop technology for one category and then apply it to others. Flywire, which uses synthetic cables to increase support, was released in 2008, and is now used in 60 percent of Nike’s footwear. Air has even been implemented in dress shoes at subsidiary Cole Haan. Management has similar, if not bigger, plans for Flyknit. “Because this is so revolutionary, and so comfortable, this one is going to hit from cheap nike air max 2016 a revenue standpoint much quicker” than recent innovations, Denson said.


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