In business cutting your margins is the name of the game and with their new FlyKnit sneakers Nike has become the poster child for cutting cost but not cutting the cool.
Nike’s new Flyknit technology is saving the company a ton of money.
The Flyknit material, which debuted two years ago, is lightweight, minimalist, and fits like socks.
Nike uses “automated, high-tech knitting [technology] to ‘weave’ the shoe’s upper” half into one piece, instead of several pieces that are stitched together, according to a recent research note by Deutsche Bank.
The technology reduces labor costs by up to 50% and cuts material usage by up to 20%, resulting in .25% higher margins, analysts wrote.
The Flyknit shoes retail for $120 to $150 on Nike’s website.