Business

Supply chain, social media and brand pricing

By Tatiana Allen

As the saying goes, “everything old is new again.” 

That’s shown, for example, in how brands such as Puma, New Balance, Crocs, and Champion, once again, are popular. Their popularity is driven by several factors, including the influence of social media, marketing, and celebrity endorsements.

The price increases, however, are supply chain troubles in China and Vietnam.

“It’s taking longer to get the initial resources-shipping is taking longer; there’s a cost being implemented.”, said Rebecca Kowalewicz, social media marketer and council member of the Forbes Agency Council. 

For instance, Puma and Champion’s quarterly earnings were lower than expected due to the shutdown of factories, and sale prices as a result rose to make up for the loss.

It is the demand that increases but the supply that remains on a decline; and since being in a time of inflation, prices are only expected to rise. 

On the flip side, companies like New Balance and Crocs were able to bypass the supply chain issues by changing factory locations. New Balance move its operation to Methuen, Massachusetts back in March of 2022. While Crocs move their production to Indonesia, India as  “Our shoes are really simple, and so [swapping] factories can be very, very quick,” Andrew Rees, CEO of Crocs Inc., said in a CNBC news article.

The function and layout of social platforms have been able to control the behavior and the decisions that consumers make concerning purchases.

It has been easier to shop online with platforms such as Instagram, Facebook, and Pinterest. Giving users the option to pay on the app without disturbing their content consumption. “Any company that consistently presents themselves to the public and advertises their name is going to create an effect-a reminder effect,” said Henry Assael, Marketing Professor at NYU. It makes online shopping second nature to daily users. 

Social media has become a place of credibility with reviews by users themselves. This further influences a consumer’s choice to invest in companies based on the reputation they’ve built online. Henry Assael says “The reminder effect is very important if consumers are pre-disposed to buy but it is unlikely to be effective if they not pre-disposed to buy.”

During the Covid pandemic, companies have been able to gain attraction using non-political social good.

Crocs for instance back in 2020 globally gave away 1 million shoes to health care workers. This year they have collaborated with FIGS to give away 10,000 shoes and scrubs to healthcare workers. The marking strategy of using social good to appeal to an audience has worked in Croc’s favor for people to further support their efforts.

The renewal of popularity and prices can also be due to the companies broadening the audiences they market to. Puma this year introduced its “She Moves Us” campaign, spotlighting female role models within culture, sports, and communities. Rebecca Kowalewicz says “We have to look at inclusivity as an equity a part of the overall advertising for any brand-for big brands and small brands, doesn’t matter.”  

“Collabing and also tapping into the market that we are with influencers- we think we’ve seen those brands be put in the forefront,” said Kevin Montes, fashion blogger, and content creator.

A sponsor matching the promoted brand’s image and mission determines whether the audience will be interested in what they have to offer.  Kevin Montes says “It is important for the influencer to know what their demographic is to make sure you know they picking the right opportunities .”

Crocs in the last five years have collaborated with many musical artists such as SZA, Justin Biber, Post Malone, and fashion company Balenciaga for limited edition shoes that have gone on to sell out in a matter of hours. 

New Balance has also collaborated with designers and creative directors such as Joe Fresh Goods and Teddy Santis. Later on this year they plan to debut their partnership with the rapper, Jack Harlow with his take on the 550 sneakers.

 The scarcity to own a pair of any of these shoes has made the market price be $100 to $2,000.

It is by using social media, marketing, and collaborations that these companies are reaching a wider audience and gaining a stronger fan base.

Fashion is timeless and it is this idea that echos to be true in these brands’ resurgence in culture and people’s choice of style.