# data[].attributes.body
New Balance has been in business for over 100 years

# data[].attributes.attachment_link.readable_text
It's no secret that Adidas and Nike have ruled the modern sneaker market for a number of years now, but New Balance has kept itself firmly in the game by producing exceptional sneakers that are hailed for their comfort and quality. As one of the largest sporting manufacturers in the world, New Balance has been in business for over 100 years, producing iconic sneakers and clothing some of the world's most ambitious athletes along the way.

New Balance is a household name that is only growing in popularity as the years go by. But how did New Balance earn its global success? And why do some Balance shoeboxes have a chicken printed inside the lid? We'll be answering those questions and more as we delve into the history of New Balance.

New Balance History & Philosophy

New Balance was founded as New Balance Arch Support Company in 1906 by William J. Riley. An Irish immigrant, Riley resided in Boston, Massachusetts. It is believed that Riley was inspired to produce his first product after watching chickens strut around his backyard. Fascinated by how the chickens balanced so perfectly on their three-pronged feet, Riley designed a flexible arch support with three support points.

In 1927, Riley hired a salesman named Arthur Hall, who eventually became a partner in New Balance Arch Support Company in 1934. At this point, New Balance was yet to produce a sneaker, and Hall focused his business on selling arch supports to workers whose jobs required them to stand up for long periods of time. Hall eventually sold New Balance Arch Support Company to his daughter, Eleanor, and her husband, Paul Kidd in 1956.

By 1960, New Balance arch supports had become very popular among budding athletes, some of whom even approached the brand asking for tailored sneakers. This inspired Eleanor and Paul Kidd to design the first New Balance sneaker, the Trackster. Released in 1961 and initially manufactured at home by the Kidds, the Trackster was the world's first running shoe with a rippled sole for traction. New Balance also offered this revolutionary sneaker in a variety of widths to accommodate all athletes. The Trackster was soon adopted as a track and cross-country shoe by schools and colleges around Massachusetts.

The Trackster was a success, but New Balance was yet to hit the mainstream sneaker market. The company remained a small operation, run by six people who manufactured, packed, and posted New Balance sneakers to mail-order customers. Sales were slow, but on the day of the 1972 Boston Marathon, New Balance was purchased by the brand's current chairman, Jim Davis, who steered the brand to become one of the largest sneaker brands in the world.

Jim acquired New Balance at the perfect time. The Boston area had become the center of the running boom that struck the U.S. in the 1970s and New Balance was in right in the thick of it. Many Americans wrote this off as a phase, but running as a hobby continued growing in popularity right through to the late 80s, providing a platform for New Balance to release more and more runners each year. Jim Davis upheld the company's traditional commitment to individual preferences by continuing to offer New Balance sneakers in a variety of widths. New Balance started to use unique model numbers rather than names for their sneakers. The number defined the type of shoe, the activity it was designed for and whether the sneaker was built for stability, or speed. Arch support

In 1976, New Balance launched the 320, the first New Balance sneaker to feature the now-famous ' N ' logo. An archetypal runner made up in nylon and suede, sales of the 320 rocketed when the sneaker was voted as the number one running shoe on the market by Runner's World magazine. The success of the 320 marked New Balance's global breakthrough.

By the 80s, New Balance had a globally successful range of products that now included walking shoes and clothing such as Gore-Tex running jackets. In 1988, New Balance released perhaps their most famous sneaker, the 574. Initially designed as a technical running shoe to offer a high level of comfort and stability, the 574 became a popular sneaker off of the running track. In A Tribe Called Quest's 'Buggin' out', the late Phife Dawg can be quoted rapping " You wanna diss the Phifer but you still don't know the half, I sport New Balance sneakers to avoid a narrow path".

New Balance continued to cement itself into sportswear and popular culture through numerous successful sneaker releases. In 2001, New Balance released the now-popular 991 sneaker, which was famously sported by the late Steve Jobs at public events for a number of years.

New Balance Today

Today, New Balance is a multinational corporation headquartered in Boston, MA. The company is still headed by Jim Davis, New Balance now makes a plethora of sneakers and apparel, including specialized products for sports such as football, cricket, basketball, and cycling. New Balance launched a skateboarding shoe brand dubbed " New Balance Numeric " that is distributed by Black Box Distribution, a company founded by professional skateboarder Jamie Thomas. The numeric line has allowed New Balance to tap into the lifestyle market and resonate with younger customers.

New Balance has collaborated with a host of significant fashion labels, including Norse Projects, Stussy, United Arrows, Junya Watanabe eYe, and Beams Plus. New Balance sneakers have a strong presence in both menswear and womenswear markets, including high fashion sects. A recent adverting campaign saw New Balance embrace the term 'dad shoe' often used to describe their more functional models. the advertisement read "Worn by supermodels in London and Dads in Ohio".

However, despite its massive popularity, New Balance is not without its controversies. Just days after the 2016 U.S. Presidential Election, New Balance found itself in hot water following a statement made by the company's Vice President of Public Affairs, Matt Lebretton, in which he stated "The Obama administration turned a deaf ear to us, and frankly, with President-elect Trump, we feel things are going to move in the right direction." The perceived pro-Trump statement was met with a wave of backlash with customers throwing away and destroying their NB sneakers. In a time rife with political tension, New Balance's position was seen as ill-timed and against the grain of most fashion brands who openly supported Hillary Clinton during the election.

New Balance was quick to clarify, however, that the statement was made in the context of the topic of the Trans-Pacific Partnership, an Obama-era policy which the sneaker giant has openly opposed citing that it would hurt their US-manufacturing. To further their argument, New Balance went on to say that they had been openly in support of the trade policies of left-wing candidates Hillary Clinton and Bernie Sanders, both of whom also came out against the TPP. Most recently, they joined a handful of other fashion brands in opposing Trump's trade tariffs, a different tune than the statement following the 2016 election.

New Balance sneakers are known for their use of high-quality materials and robust building techniques. As well as outsourcing manufacturing to countries like China and Vietnam, New Balance produces ranges of sneakers made in England and America. Many New Balance sneakers are still available in a range of widths, especially the brand's more advanced sporting models. Arch support is a key selling point of New Balance footwear. Some New Balance shoeboxes have a chicken printed inside as a nod to the brand's founder, William J. Riley, who formulated his first arch supports based on chicken's feet.

Iconic Products

574

Available for $49.95 from Stag Provisions

991

Available for $209 from End Clothing

990

Available for $230CAD (~$175 USD) from Lost & Found

997

Available for $299.99 from New Balance

# data[].attributes.attachment_link.title
New Balance: Brand History, Philosophy, and Iconic Products

# data[].attributes.attachment_link.description
It's no secret that Adidas and Nike have ruled the modern sneaker market for a number of years now, but New Balance has kept itself firmly in the game by producing exceptional sneakers that are hailed for their comfort and quality.

# data[].attributes.body
By the end of the financial year 2015, New Balance posted its revenues at 3.7 billion US dollars. The company has targeted young men, women and children from upper middle class as its target customers who are sports enthusiasts. It is positioned as an athletic based brand offering premium products.

# data[].attributes.attachment_link.readable_text
New Balance Athletics, Inc is commonly referred to as New Balance. It is a private company of American origins. The company was founded in year 1906 by its founder Mitchell. New Balance is associated with lifestyle and retail industry as it deals in apparel and accessories. It is one of the major manufacturers in world of sports footwear. The brand faces rivalry from the following companies

Product in the Marketing mix of New Balance

New Balance is one of the leading companies in the world in terms of sports accessories and apparel. The company is known to manufacture innovative features in its footwear like heel counters, blended gel inserts and selection of several sizes particularly very wide or very narrow widths. New Balance offers its products for men, women and kids in several sizes. It also manufactures customized footwear. Its diversified product portfolio includes
Men
Apparel

Recently reduced clothing

Gear and Accessories

Socks

Pants

Shorts

Hoodies and Jackets

Long sleeves shirts and short sleeves shirt

Footwear

Wide shoes

Sandals

Recently reduced shoes

Work Shoes

Lacrosse

Golf shoes

Tennis shoes

Soccer shoes

Boots

Trail and hiking footwear

Skateboarding shoes

Baseball shoes

Walking shoes

Training shoes

Lifestyle shoes

Running shoes

Women
Apparel

Recently reduced clothing

Gear and Accessories

Socks

Dresses and skirts

Capris and Pants

Shorts

Hoodies and Jackets

Long sleeves shirts and short sleeves shirts

Sports bra

Tank tops

Footwear

Recently reduced shoes

Wide shoes

Sandals

Work Shoes

Lacrosse

Golf shoes

Softball shoes

Tennis shoes

Boots

Trail and Hiking

Walking Shoes

Training Shoes

Lifestyle

Running Shoes

Boys
Apparel

Footwear

Wide shoes

Sports shoes

Sandals

Training Shoes

Lifestyle

Running shoes

Recently reduced shoes

Girls
Apparel

Footwear

Recently reduced shoes

Wide shoes

Sports shoes

Sandals

Training Shoes

Lifestyle

Running shoes

Customized footwear
Baseball

Lifestyle

574 the Icon

300 The Classic

998 The Trendsetter

990v3 The Performer

Place in the Marketing mix of New Balance

New Balance is a multinational organization with its headquarters base at Brighton in United States. It has spread its product presence in overseas market to include one hundred and twenty countries in the world via two thousand and five hundred associates. It has twelve fully-owned subsidiary companies, joint ventures, several licenses and distributors spread across the globe. Its products are available in places like South Africa, China, Japan, Canada, United Kingdom, New Zealand, Australia and of course United States.

New Balance has manufacturing facilities in the United Kingdom and the United States and has recently opened another in China. Nearly 30% of the footwear for the European market is manufactured at its facility in Flimby in England. In India, New Balance has opened its first outlet in Delhi and has also entered into a partnership deal with e-tailer platform Jabong to sell its products via its online portal.

New Balance has an organised distribution channel so that its products reach the consumer market easily. The company sells via its branded stores along with multi-brand retail stores. It has more than two hundred outlets to its name. The company also markets its products via its website and other online stores with which it has entered into partnership deals. The websites offer several options in terms of colour and size to attract its customers.

Price in the Marketing mix of New Balance

By the end of the financial year 2015, New Balance posted its revenues at 3.7 billion US dollars. The company has targeted young men, women and children from upper middle class as its target customers who are sports enthusiasts. It is positioned as an athletic based brand offering premium products.

New Balance incurs higher manufacturing costs and as their costing is high the brand has to keep its product prices at upper levels to earn revenues. The company's product prices are greater if compared with its competitor's product prices. In order to offer a balance, the brand offers premium quality goods. It has adopted a premium pricing policy for its premium products. New Balance offers value to its customers by differentiating their products with innovative features.

Promotion in the Marketing mix of New Balance

New Balance is a well-known brand that has adopted several marketing strategies to gain brand awareness in a consumer market. It has created some marvellous ad campaigns that are shown via television, sports magazines and social media platforms. The company has its own website along with Facebook, Twitter and YouTube to handle its promotional activities.

New Balance has been part of philanthropic activities for many years. As part of their eco-friendly activities, they have started manufacturing with zero waste. The brand offers 10% discount to students so as to create target customers at an early age.

New Balance has entered into several partnership and sponsorship deals to increase its brand visibility. In the year 2015, February it entered in a sponsorship deal of 40 million dollars/year with Liverpool. New Balance dressed the Chilean Olympic Committee at Rio and Olympic Council of Ireland in the year 2016. The company has signed several athletics like Stephanie Twell and in the year 2015, Trayvon Bromell. Barbuda National Team, Antigua National Team and New Zealand National Team are sponsored by New Balance.

It has entered into a partnership deal with Matt Bonner and provided him with footwear for several years along with James Worthy of Los Angeles Lakers. In the year 2015, the company signed a deal with Cricket South Africa and in the year 2017 with England and Wales Cricket Board to become their Kit supplier. New Balance sponsors several cricketers like Dale Steyn, Yasir Shah, Colin Munro, Aaron Finch, Gary Balance and Mathew Wade.

# data[].attributes.attachment_link.description
This is the Marketing mix of New Balance. New Balance Athletics, Inc is commonly referred to as New Balance. It is a private company of American origins. The company was founded in the year 1906 by its founder Mitchell. New Balance is associated with lifestyle and retail industry as it deals in apparel and accessories.

# data[].attributes.body
- the unique selling point was the concept of three support points in the insole, this was a concept inspired by the way that a chicken’s three clawed foot results in perfect balance.  He used to have chicken feet on his desk so that he could demonstrate his concept to prospective customers.  The name New Balance was inspired by observations of chickens running about in the yard.

# data[].attributes.attachment_link.readable_text
Described by Karen Key in the Observer, as the, 'world's great egalitarian footwear', in her article about an exhibition of 40 iconic trainers were displayed in Covent Garden Piazza in an exhibition aptly named, 'Sneaking into Fashion'. Tory Turk the curator of the exhibition described his carefully chosen selection as one that, 'tells the story of the development of trainers from simple generic plimsoll to fashion staple; a cornerstone of popular culture, sport and style.' So whether you wear your trainers to run the London Marathon or to go to the supermarket you are wearing an iconic piece of footwear.
New Balance and Chicken Feet
Trainers have developed from a very simple design that enabled the wearer to enjoy the freedom comfortable footwear gives you. Now of course trainers have been scientifically designed so that they optimise your running performance. Technical development of trainers is by no means a new idea and the inspiration behind the technology can be somewhat surprising. In 1906 William J Riley, a 33 year old Englishman, set up his, 'New balance Arch Support Company', in Boston. The company initially manufactured arch supports to improve shoe fit in the Boston area. His unique selling point was the concept of three support points in the insole, this was a concept inspired by the way that a chicken's three clawed foot results in perfect balance. He used to have chicken feet on his desk so that he could demonstrate his concept to prospective customers. The name New Balance was inspired by observations of chickens running about in the yard. The company expanded in many ways from its humble beginnings and in 1960 Riley's daughter and husband bought the company and manufactured the 'Trackster', which was the world's first running shoe with a ripple sole. Now of course New Balance trainers are manufactured in the UK and USA and are very popular throughout the world.
New Balance at StandOut.Net
All New Balance trainers are identified by a number rather than a name simply because they are made in different width and support fittings to cater for everyone's needs. Not only can you choose your trainers to fit your feet you can also select a pair to coordinate with your clothes and individual style each style family, such as the 373, comes in different colours and designs.
New Balance 373 Family
This collection is described as being a classic sneaker with a retro design that makes it look like you have been wearing these trainers for a long time. Of course they have been manufactured with the most up to date technology resulting in the best of both worlds - style and performance.
New Balance 410 Family
These low level running shoes are inspired by the US track and field running teams of the 1980's. The design is flexible and promoting amazing freedom of movement.
New Balance 574 Family
Described as a retro running shoe that simply looks good and feels fantastic you cannot go far wrong in choosing your next running shoe from the 574 range.

If you would like to browse Standout.co.uk's full range of New Balance trainers you are very welcome to explore our New Balance selection.

# data[].attributes.attachment_link.title
How Chicken Feet Inspired The Innovative Design Of New Balance Trainers

# data[].attributes.attachment_link.description
Described by Karen Key in the Observer, as the, 'world's great egalitarian footwear', in her article about an exhibition of 40 iconic trainers were displayed in Covent Garden Piazza in an exhibition aptly named, 'Sneaking into Fashion'.

# data[].attributes.body
They have a new global brand identity and slogan which is "Declare your Independence". The brand want to include more individuality, self-confidence and courageous lateral thinking in order for the customers to get the best out of themselves.

This is key for my range and links back to that

# data[].attributes.body
- the most noticeable change came in 2006, when it was decided to reduce the number of speed marks to seven and replace the original black and white color scheme with a vibrant red. Although the changes were subtle, they injected a new lease of life into the logo, imbuing it with an energy and brightness that felt much more ‘millennial’ than the previous incarnation. Despite the modifications, the New Balance logo today is still very much Heckler’s creation.

# data[].attributes.attachment_link.title
The History of and Story Behind the New Balance Logo

# data[].attributes.attachment_link.description
A logo can’t make a bad brand good, but it can certainly help make a good brand great. What would Fendi be without its iconic Double F? Where would Chanel

# data[].attributes.body
- stand for something bigger than sneakers. We champion those who are fearlessly driven by their passions. We elevate sport. We do right by people and the planet. Together, we drive meaningful change in communities around the world.

# data[].attributes.attachment_link.readable_text
﻿At New Balance, our job is to aid athletes in their pursuits, whether that means helping professional athletes set records and win medals, or propelling everyday athletes to achieve a new PR, run their first 5K or just to live a more healthy and active lifestyle.

Our products are the perfect blend of function and fashion, giving you the performance technology you need and the style you want. Our associates around the world bring these goals to life with their high-level skills and creativity. While we offer the best product on the market, we're also equally committed to giving back. So while we look to succeed, we believe in ensuring others have the same opportunity.

# data[].attributes.attachment_link.description
﻿At New Balance, our job is to aid athletes in their pursuits, whether that means helping professional athletes set records and win medals, or propelling everyday athletes to achieve a new PR, run their first 5K or just to live a more healthy and active lifestyle.

# data[].attributes.attachment_link.readable_text
BOSTON - Nike, Adidas...New Balance?

Yes, New Balance.

The Boston-based brand actually ranked third in the performance footwear category in the year ending June 2018 behind the two activewear giants. And while the others might dominate headlines by paying millions to sports leagues, universities and pro athletes and by signing buzz-generating collaborations with pop stars and streetwear leaders, New Balance stays in the race with a strategy as well-tuned as a sub-2:05 marathon runner's stride.

It is that strategy that New Balance plans to maintain as it aims for sales of more than $7 billion worldwide by 2023, according to chief executive officer Rob DeMartini.

Moreover, by continuing to focus on performance above all, the brand has become as hot among the streetwear set as many of its larger peers, especially in Japan, where it is the market leader in lifestyle.

A walk along the streets of Tokyo confirms that, with New Balance's signature NB more prevalent than either Nike's swoosh or Adidas' three stripes. And as Japan goes, so often goes the rest of Asia, especially China, where the NB logo pops up on hordes of young consumers walking along in Beijing, Shanghai and even cities such as Xian.

But while New Balance's reach continues to expand, there are some things that remain the same.

New Balance Athletics Inc. is headquartered in Boston's Brighton neighborhood, just as it has been since it was founded 58 years ago by William Riley, a 33-year-old Englishman living in the States who created the New Balance Arch Co. to manufacture arch supports to improve shoe fit. He based the design on a chicken's three-clawed foot that provided the bird with perfect balance and mimicked the design by creating an arch with three support points in the insole. It created its first pair of running shoes in 1938, and in the Fifties and Sixties, athletes increasingly sought out the company because of its expertise in handcrafting footwear.

The company today employs more than 7,000 people worldwide, operates five factories in the U.S. and one in Flimby, England, and has worldwide sales that DeMartini projected will hit $4.5 billion this year. And it is still privately owned by James S. Davis, who bought the business in 1972 and currently serves as chairman.

But while New Balance continues to be private - and according to DeMartini, will remain that way - the company has grown substantially over the years, moving beyond its footwear roots to offer a wide range of active apparel - a category it got into in 1978 - as well as equipment and gear for sports ranging from soccer, lacrosse and field hockey to baseball and cricket. In 2001, it acquired PF Flyers, and in 2008, it bought Vital Apparel Group to further expand the lifestyle footwear and apparel markets.

While the brand's goal of sales of more than $7 billion in sales in the next five years is ambitious, DeMartini breaks it down as logically as a runner's split times.

"We had $1.5 billion in sales in 2007 so that's about 10 percent growth a year," he said. "Right now, we have 4 percent market share globally, so gaining just one point gets us to $7 billion. It won't be easy and we know nobody is going to hand it to us, but we can get there."

For the 12 months ended June 2018, not only did New Balance rank third in the performance category, it also was fifth in the overall athletic market behind Nike, Brand Jordan, Adidas and Skechers, according to the NPD Group.

For DeMartini and his team, reaching that $7 billion milestone will mean staying true to its core. "We're resolute in our strategy to be the world's best running shoe brand - period," he said. "We're not trying to chase the market or follow what's hot at the moment."

He believes that "consumers root out authenticity incredibly quickly and when we do things that are not us, they tell us," he said.

But at the same time, New Balance embraces its ability to be trend-right. "Our focus starts with performance, but we recognize we also have to have a sense of style," DeMartini said.

It doesn't hurt that within New Balance's rich archives are products that are now deemed fashionable. "Almost all of it has historically been performance product," DeMartini said. He pointed to the current "dad trend," saying that a leading model, the company's 608 sneaker, was "a core trainer before it was the shoe to go to a barbecue in."

The same thing happened in Asia, where New Balance "refreshed running shoes from the past" that have now become popular in the lifestyle segment of the market.

But New Balance's presence in Asia actually dates back quite some time. It has operated a subsidiary in Japan for three decades and has a design studio in Tokyo where it creates cutting-edge designs for markets around the world.

"Japan is our oldest subsidiary and has been our second biggest market for 30 years," DeMartini said. "And our Tokyo Design Studio doesn't design just for Japan, but for the global business; we just chose to put it there because it's at the epicenter of on-trend merchandise. Just like our performance center is here in Boston."
Jeff McAdams, director of international marketing for New Balance, said the Japanese subsidiary is "material to our history," he said. "We've always had a strong market share and a history of design leadership in Japan," he said.

Like the U.S., the business there is broken down into either performance or lifestyle and while it leads in lifestyle, it is third in performance.

"The Japanese consumers have an incredible desire for craftsmanship and New Balance is the only major brand still making a percentage of its product in the U.S. and the U.K. That's the cornerstone of the business in Japan," McAdams said.

In addition, New Balance seeds product to influencers there, a strategy that has paid off by attracting Millennials to the brand. "We have lifestyle marketing teams who stay connected to the local community," he added.

What New Balance doesn't do is pay people to endorse its product. McAdams said that, more and more, the impact of such people is declining, particularly in Asia. "Millennials increasingly recognize the difference between paid and not paid endorsements," he said. "We're not on the rooftops shouting because we believe authenticity is more important."

But New Balance does have a roster of athletes who endorse the brand and whom McAdams said are "critical to our success. We partner with them and they meet certain criteria. They're our first voice to the consumer on the performance side. They're our wear testers and they validate our innovation. And they keep us young and fun."

Also keeping New Balance young and fun is its association with school-age athletes. The brand sponsors the New Balance Nationals, the premier track and field event for high school students, the High School Tennis Championship as well as the Area Code Games, a player development program for high school baseball players.

On the college level it supports several schools, including all sports at the University of Maine and track and cross country at Columbia University in New York, Providence College in Rhode Island and Adams State in Colorado. In Japan, it also sponsors races at the university level as well as the Hakone Ekiden, a long-distance relay race that McAdams said is "their version of the Super Bowl."

As a result of the strength of its lifestyle product - which DeMartini said represents about half of the company's overall sales - New Balance is able to invest more in performance. "We have a lifestyle business because we have a performance business," McAdams said.

To that point, the Japanese subsidiary recently became the sponsor of the Nagoya Women's Marathon, the largest women's-only marathon in the world with nearly 22,000 runners.

In addition, New Balance signed a deal in January with famous Japanese shoemaker Hitoshi Mimura to become the exclusive adviser to the company. Under the terms of the deal, Mimura will work to develop and supply New Balance product to top athletes around the world.

"He's a household name among performance runners in Japan," McAdams said. And the multiyear deal should help continue to bolster the brand's standing in the run-up to the 2020 Olympic Summer Games in Tokyo.

New Balance also operates a flagship in the Harajuku neighborhood of Tokyo that opened in 2016. McAdams said the location was chosen deliberately for its ability to serve both an international consumer as well as a local one.

In addition to Japan, New Balance has subsidiaries in China, Asia-Pacific, Australia, New Zealand, South Africa, the U.K., Spain, Italy and Scandinavia. In other parts of the world, the company operates through a distributorship arrangement.

"We're doing well in Asia, but China is an area of significant focus for us," McAdams said. "We're known as a lifestyle brand there because of Japan, but our primary focus as a company is performance."

In China, the brand is bolstering its event and product marketing around its running expertise to grow that side of the business.

McAdams said that, over the past couple of years, a running boom has emerged in that country. "Three years ago, there were no visible signs of running," he said, "but in the past 12 to 24 months, that has visibly changed. We liken it to the late Seventies/early Eighties in the U.S., and that's very exciting to us."

He said most Chinese runners have embraced shorter distances, but half and full marathons are also rising in popularity.

And as New Balance makes strides in the performance end, the lifestyle product also benefits. "The connectivity between lifestyle and performance is so critical," McAdams said.

Interestingly, New Balance operates more than 4,000 retail stores globally. Of that number, slightly over 300 are in North America, and nearly 3,000 are in China, where the brand is completely vertical and set up a subsidiary around eight years ago. "We have no wholesale operation there," he said. There are also around 900 stores in other parts of Asia, Latin America and Europe.

DeMartini said the low store count in the U.S. - "We have 160 licensed New Balance stores, 80 factory and 10 first-line stores," he said - is intentional. "We don't see that number growing a lot. Jim Davis and his team built the company to be the best partner to its wholesale partners."

Unlike Asia, wholesale in the U.S., Japan and Europe continues to represent the biggest part of the business. The primary distribution model for the brand is run specialty retailers, which is where New Balance built its business in the Eighties and Nineties. These stores remain "critically important" in the U.S., McAdams said. "We continue to have very close ties."

New Balance also sells on Amazon, which McAdams said is viewed "as an important extension of our online business. A material percentage of consumers go through Amazon on the path to buying footwear and apparel."

DeMartini, whose background included Tyson Foods and Procter & Gamble before joining New Balance in 2007, said, "I grew up in another industry and from the brand perspective, retail looks easy, but when you get into it, you realize there's nothing easy about it at all."

That being said, in some instances, DeMartini said, "We feel a great responsibility and want to be fully in control, but in other places, we just want to be the best partner."

That being said, direct-to-consumer continues to gain in importance. The company started opening flagships three years ago and now operates units in Tokyo, Seoul, Shanghai, Boston, San Francisco and London. Large stores, although not termed as flagships internally, operate in New York, Berlin, Milan and Madrid. The most recent opened in Shanghai in late 2017 in an emerging shopping district.

These stores are designed and built to serve as "gathering places," he said. They offer special events and other experiences that are intended to "project the brand into the future," he said.

Peering into his crystal ball, DeMartini characterized current sales as "good," and projected that this year, growth will be "north of 10 percent. That's a rate we've held for most of the last decade."

New Balance performs best in the U.S. and Europe while Asia, which had been a leader for a while, has slowed a bit of late, he said. But U.S. sales are up 12 percent.

The brand is performing well in both performance and lifestyle, McAdams added, and in fact, revenues have exceeded the industry averages for the past three years.

Part of that is due to the successful collaborations that New Balance has created of late. The most recent was with Paul Smith, who designed a special UK 576 x Paul Smith sneaker targeted to the World Cup. It features the designer's colorful signature stripe and was also intended to commemorate the 30th anniversary of the shoe.

Before that, it teamed with J. Crew, Kith and United Arrows to reinvent some of its popular sneakers to appeal to the young customers seeking exclusive, limited-edition product.

One of its most popular collaborations came in 2017 when it worked with Concepts, an upscale skateboard-skewed store in Cambridge, Mass., on a Made US 999 Hyannis sneaker that paid tribute to the company's roots. It was introduced at the influential ComplexCon show in California.

But despite their popularity, McAdams said New Balance is cutting back on its number of partnerships.

"We've actually reduced the number of collaborations we're doing over the last two years," he said. "It's not concern over our past partnerships, but to stay focused on quality and invest in performance."

That includes creating special collections for both the New York and London marathons, where the brand stepped up as a sponsor in 2017.

"These are guideposts for our performance marketing efforts," he said. "And they're great venues for expanding our apparel business and showcasing that."

Although New Balance was born as a footwear brand - DeMartini said shoes still accounts for 80 percent of sales - the company made a "declaration" several years ago to boost its apparel business.

"We created a whole new apparel division, headed by Deirdre Fitzgerald and we've seen a fivefold increase in sales over the past seven years," McAdams said. Fitzgerald's background included Talbots, J. Crew, Brooks Brothers and Bloomingdale's.

Fitzgerald, whose official title is executive vice president of global apparel, said when she first joined New Balance nearly five years ago, she "saw a great opportunity and the commitment from leadership to build the business. As a team, we felt confident we could increase the fashion quotient without compromising on performance. We pushed the sophistication and relevance of our product and focused on storytelling through innovation, more frequent newness, print, color and modern trims."

The biggest opportunities, she said, included expanding lifestyle product globally and increasing its reach with women.

"Apparel is growing more and more," DeMartini said, referring to Fitzgerald as "the medicine we were looking for." But he knows that in order to reach its goals, apparel sales have to continue to grow. "We know our apparel business needs to be bigger," he said.

Like Fitzgerald, McAdams knows that can only happen by gaining the loyalty of women. "We're working to increase our appeal to female runners," McAdams said. "That will be the core of what we're doing for the next five years."

The breakdown between men's and women's is now around 50-50, DeMartini said, where "historically it's been 70-30 men's to women's. We haven't stated a goal for how large we'd like it to be, but we want both to grow quickly."

McAdams said, New Balance three years ago launched a direct-to-consumer catalogue for women's apparel and the circulation was 26 million within 30 months. "It was a significant investment and put us on the map," he said.

Fitzgerald agreed.

In women's, she said the company is seeing strength in "versatile pieces," such as its Transform bottoms, En Route jackets and a new category, sweaters. "Our women's product push in North America has really helped to drive strong average retail growth and new customer acquisition," she said.

In addition, NB Athletics, which was launched last year within the lifestyle category, "has really resonated globally and plays on our track heritage. We are seeing a strong reaction to newness in running apparel through Q speed and NB heat collections," she said.

Looking to the future, Fitzgerald said she hopes to "continue to drive our lifestyle proposition globally, and further invest in the expansion of our women's business in North America. This fall we have two exciting innovation launches across multiples categories." She pointed specifically to the Heat Loft jacket that will debut in September and the Radiant Heat Bonded jackets that will launch at the New York City Marathon in November. Children's wear and accessories are also seen as growth drivers, she said.

But within all categories, New Balance is focused on infusing its products with the most advanced research and technology available through the efforts of its innovation lab in Massachusetts.

This appeals to its target customers who fall into three buckets: a metropolitan athlete who runs but is also "highly socially engaged," McAdams said. "They want to perform but want to look good, too."

Then there's the style seeker, who McAdams said is "curated from head to toe." The last is the "high school game changer." By intensifying its focus on this segment, New Balance is seeking to increase its relevance with the younger consumer.

Looking ahead, McAdams said New Balance hopes to continue to increase its reach internationally. "We have a thriving business globally in Latin America, Chile and Brazil. Our newest division is in the Middle East, and we have a small but growing presence in the United Arab Emirates and India. That completes the global circle."

While each market has "cultural nuances," New Balance works to present "a single brand expression globally," he said.

And while today's company is a far cry from the arch and orthopedic shoe brand that Riley created over a century ago, the future appears bright for New Balance.

# data[].attributes.attachment_link.title
New Balance Eyes $7 Billion in Sales by 2023

# data[].attributes.attachment_link.description
BOSTON - Nike, Adidas...New Balance? Yes, New Balance. The Boston-based brand actually ranked third in the performance footwear category in the year ending June 2018 behind the two activewear giants.

# data[].attributes.attachment_link.title
L4 INP LINE DETAIL Range Plan with VAT(1)

# data[].attributes.attachment_link.readable_text
Most Sustainable Materials for Clothing

In this Post, I will try to explain my view on the Most Sustainable Materials for Clothing.

My definition of sustainable clothing is not the simplest. When starting Grizzly Wears I thought this was a simple yes/no statement but could not have been more wrong. It seems for every positive there is a negative. This lead me to look at sustainability as a balanced scale, not a tick box.

Likewise, when Identifying potential new fabrics it is important to assess the good and bad impacts. Looking further across an entire range enables you to balance these impacts. For example cotton requires land to be grown on, recycled polyester does not. By using these fabrics to their best application it's possible to counteract the bad and maximise the good. This is my theory anyway !

Lastly, it is difficult to fully assess where manufacturers are along this balanced scale. Good, internationally recognised certifications are a start. Sometimes words and phrases are used in a broad term and although partly true, can be stretched to fit. Despite having clearer labelling than ever, it is still not perfect. Let's get on with it...

What makes a fabric sustainable ?

Firstly we will look at good properties. Lets start with positives and see where we go.

In order for a material to be sustainable it should come from a renewable source in strong supply. Materials which can be grown are good. These can be renewed and farmed to meet demand. Waste due to go to landfill is also a good source. Preventing more landfill waste is a great achievement. Coupled with closed loop production this is an ideal way to create sustainable materials. Infinite recycling.

Not wanting to go into too much into the details as I have covered this in other blogs (and it's likely I will again). These are the key things that make materials sustainable from a certain point of view.

Social factors also play into making sustainable fabric. Looking at fair pay and treatment of workers is also important. This is where good accreditations for responsible sourcing comes into effect.

What makes materials unsustainable ?

This is the decisive part. The part to make you think more.

Often considered to be sustainable, farming on an industrial scale can be harmful. When clearing mile after mile of natural land to farm raw materials for fabric on a large scale, it is harmful to the environment. Animals lose their homes. The eco system is disrupted. Shifting towards recycled materials is how we can counteract the effects of large scale farming to some degree.

Materials produced from non-renewable sources such as oil are not sustainable. There is a limited supply of oil and it's being used at far greater rate than can be replaced. However, the last thing we should do is discard everything made of plastic. Again this leads to recycling.

Why is sustainability important ?

I did believe "you can't stop a force of nature" for a long time. Now I think with modern technology this is an achievement we should not have tested. Being in the UK we take our climate for granted. Furthermore we are protected by the gulf stream from most extreme weather. The gulf stream is now at its weakest state in recorded history. Losing the benefits we get from this could be catastrophic. I have read that we may only have 20 years of the gulf stream left and once the effects are lost they may never come back.

Everything we can do to reduce our impact during our time on this planet is important. The world can go on without humans, but not bees.

The Most Sustainable Materials for Clothing

Here are the ones I like in a list, in no particular order

Cotton (Organic is better)

Bamboo

Recycled Polyester (Anything Recycled for that matter!)

Hemp

Linen (Flax)

Wool

This is a summary and not a comprehensive list by a long way. Fantastic work is being done by dedicated people to create more innovative sustainable materials. A lot of these are utilising what we already have such as waste from industry or farming. This is the way.

Finally, If you loved this article, support Grizzly Wears in identifying the best materials for their applications. Buy Sustainable Clothing

# data[].attributes.attachment_link.description
Most Sustainable Materials for Clothing In this Post, I will try to explain my view on the Most Sustainable Materials for Clothing. My definition of sustainable clothing is not the simplest. When starting Grizzly Wears I thought this was a simple yes/no statement but could not have been more wrong.

# data[].attributes.attachment_link.readable_text
PESTLE Analysis of New Balance analyses the brand on its business tactics. New Balance PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as New Balance, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the New Balance PESTLE Analysis:

Political Factors:

The political factors in the New Balance PESTLE Analysis can be explained as follows:

New Balance operates in over 120 countries, so it has to properly analyze the political environment of the various countries. Political instability in the country affects the profitability of the business adversely. The US has a low interest rate which really helps in the growth of this industry. The brand must always follow manufacturing laws in the countries in which it has its manufacturing plant. These factors are not in control of the business but are very important for the business to grow. Political conflicts between countries also put an impact on the revenue of the brand. The government of the various countries have made new laws to address the problem of COVID-19 so a New Balance must follow these laws to satisfy its various stakeholders.

Image: pixabay

Economic Factors:

Below are the economic factors in the PESTLE Analysis of New Balance:

New Balance sells medium price products which have a good reputation among its customers.

So, this company faces less threats from the economic factors like inflation rate, GDP, growth rate etc. However, decrease in the level of income of the people may force them to move to low priced products which can decrease the demand of the products of the brand. It earned a good amount of profit last year, so the company has a good amount of resources to chase after small emerging markets to increase their revenues. Due to COVID-19 many people have lost their jobs and are left with less income to spend. This is a major threat for the company revenues and profitability which companies need to address.

Social Factors:

Following are the social factors impacting New Balance PESTLE Analysis:

New Balance shoes are widely accepted in the sports industry. The company enjoys good social status among its customers. The culture of the people varies from country to country. It operates in more than 120 countries so it needs to have a close look at the social factors of that country. As people are becoming more health conscious now, New Balance has a great opportunity to increase their revenue as their brand has a good name in the sports and fitness industry. Also demand for the sports apparel will also increase due to this, which is really good news for the company. All these social factors need to be considered by the company to choose the right marketing campaign to attract its potential customers.

Technological Factors:

The technological factors in the PESTLE Analysis of New Balance are mentioned below:

Technology plays a very important part when it comes to innovate in different ways. From producing goods to interacting with customers technology plays a very crucial role in enhancing the experience of the customers. The rise of social media today has allowed various companies to use valuable information through various metrics allowing them to target their potential customers. As New Balance faces intense competition from various major brands like Nike, Puma etc. so adoption of innovative technology really helped the company in competing with major competitors in the footwear industry. It should continuously innovate and be compatible with the new technologies. Technology trend awareness is very important for any company to capitalize the benefits of that technology. Also new technology helps in producing innovative products at less cost thus improving overall profitability of the firm.

So the brand must not afford to overlook technological factors to gain the competitive advantage.

Legal Factors:

Following are the legal factors in the New Balance PESTLE Analysis:

As New Balance operates in various countries, therefore laws and regulations of different countries are different. The legal obligations of the particular country can impact the whole industry in respect of competition, employment and health. It must follow national as well as international laws to be within the legal factors. It has ownership of intellectual properties and patents for avoiding other companies to copy its product design. As a big company it has trademark production too. Countries continuously make changes in their laws and regulations according to their needs. The company must tackle such issues to sustain their global presence. Taking example of recent time many countries have introduced workplace regulations to tackle the problem of the COVID-19, so New Balance should make sure that they abide by these regulations and at the same time increase their revenues. Companies cannot afford to ignore legal factors of a particular country as non-compliance of it may result in heavy penalty on it.

Environmental Factors:

In the New Balance PESTLE Analysis, the environmental elements affecting its business are as below:

New Balance has stopped using the restricted material in production and packaging of the product. The company has also committed towards reducing carbon emission resulting from their production process. This shows that the company is really working towards saving its environment. Low waste initiative program was started by the company to tackle the problem of waste it creates during the production process. The analysis of environment factors become very crucial as ignoring these factors may tarnish the image of the company.

The company is committed to ethical business practices which have enhanced the image of the company in the world. To address the issue of non-renewable plastic it has substituted plastic bags with renewable bags at all its stores worldwide. This shows that Company really considers these factors very important in designing its marketing strategy.

To conclude, the above New Balance PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse analysis of more brands and companies similar to New Balance PESTLE Analysis. This section covers many brands and companies.

Continue Reading:

Share this Page on:

# data[].attributes.attachment_link.description
PESTLE Analysis of New Balance analyses the brand on its business tactics. New Balance PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.