The Air Air Jordan 12 GS Hot Punch is officially releasing today and I’m surprised Jordan Brand waited till the Fall season to drop this model. This would’ve been the perfect sneaker to kick off the Summer season, it would’ve been the ideal gift for elementary and middle school graduates. The shoe features a myriad of radiant colors on its uppers consistent with the Summer season, so I’m really wondering why this shoe was scheduled for a time such as this.
The only way I can explain this is that Nike is already preparing for the Summer of 2020. What do I mean? If i’m not mistaken, most retailers probably set their sneakers’s shelf life between 0 to 9 months ( I’m only assuming this so don’t quote me on it). So if the wholesale price of the Jordan 12 Hot Punch is between $70-$80 ( meaning this is how much retailers are paying for it), it will be more beneficial for Nike if the shoe doesn’t perform well via Retail. Because major chains like Footlocker with the RTV ( Return to Vendor) privilege will send it back to Nike and receive a credit towards their next purchase. Nike can now market the shoe directly to the consumer via the outlets for $99 or $119 and actually earn more profit. So releasing the Air Jordan 12 Hot Punch in October makes sense since in 9 months the shoe will be heading back to Nike and then the outlets, check out the image below you’ll understand what I’m conveying
If I assume that it cost Nike $30 to produce the Air Jordan 12 Hot Punch, the brand will only make a profit of $40 if sold via the wholesale distribution channel and $69 if sold via the outlets ( Consumer direct). But someone will say- then why does Nike continue to utilize the wholesale distribution channel? Well Nike every shoe manufactured that hits the retail industry is paid for in advance, so now you understand why. And if you don’t understand, cogitate on it a little more and you’ll get it. As a matter of fact, the post below shed some light on this , I’ll invite you to read it
Nike Sneakers Severely Marked Down Via Retail, Who’s Still Winning Though?
RELEASE INFORMATION
Air Jordan 12 GS Hot Punch
style#510815-601, $140
You can buy the shoe now on eBay from our featured sellers in the listings below
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