'Shark Tank' investors turn their back on 1597 Sneakers over one big miscalculation
LOS ANGELES, CALIFORNIA: "Sharks, did you know that Asian Americans are obsessed with sneakers and are a huge factor in driving sneaker culture?" This was the opening line of Sam Hyun from Newton and Adam King from Dover during their pitch on the October 18 episode of 'Shark Tank' Season 16, which premiered on ABC.
After Adam, who has been in the business for twenty years, kept hearing the same sentiment, he and Sam co-founded 1587 Sneakers last year. They began packaging and delivering from a small office in Roslindale, and in just over a year, they have expanded to a larger warehouse. They entered the Tank with a demand of $100K for a 15.87% equity stake. While that’s an unusual figure to start with, it's worth noting that the initial release of 1587 shoes was priced at around $288 per pair. This suggests they may not have a solid grasp of those numbers. We're surprised that Mr Wonderful didn't recommend licensing the brand, allowing businesses to customize the simple, somewhat plain shoes with their designs. Essentially, they are trying to create their version of FUBU. Unfortunately, Daymond John declined to invest. While we're rooting for them, this is a challenging venture, as they are targeting a specific niche and charging a premium in a highly competitive industry. We suspect that entering this market is challenging, as it is dominated by major players.
Made in Italy sneakers made by Asians
1587 Sneakers and its co-founders, Adam and Sam, used their pride in more than 435 years of Asian American history to pitch their company during the Season 16 premiere of ABC's 'Shark Tank'. The company aims to cater to an audience it believes is underserved in the footwear industry by creating beautifully crafted products that are deeply rooted in Asian American culture.
They are marketed as premium, high-end sneakers that are produced in Italy using full-grain Italian leather. Additionally, the company name pays homage to Asian American culture, reflecting the arrival of Philippines sailors in America in 1587.
Killing price point
Until now, 1587 Sneakers has sold its products exclusively through its website. Most of the sneakers are priced at $288 and are manufactured in Europe. These include the MORRO BAY Golden Panda and the AP87s. In response to consumer demand, the team launched the Yellow Thread Sneaker line in September 2024. These sneakers are more affordable while still using the same high-quality materials.
The main difference is that they cost $188 less because they are manufactured in Asia. Additionally, the Heritage slides are typically priced at $95 but often go on sale for 40% off, reducing the price to $57. The clothing section of 1587 Sneakers features the Chinese Ah Shirt, Unapologetic Smiley, FAHM Bayan Box, Built This Shirt, KAAN 2024 Collab, and #aaja24 Shirt, all available for $50 each. The Unapologetic 1587 shirt is priced at $45.
The full price is $50, but the Pinoy Pride and Bau Cua (Ham Chơi) shirts are on sale for $37. Additionally, the company sells three other types of caps: the Vintage Heavy Ballcap costs $55, while the Unapologetic Smiley Hat and Dragon Dad Hat cost $40.
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What’s next for 1587 Sneakers?
The Asian Corporate & Entrepreneur Leaders presented 1587 Sneakers with the Community Partnership Appreciation Award in September 2024. Following six months of creative development under the direction of Jose Antonio Vargas, 1587 Sneakers unveiled the FAHM (Filipino American History Month) Bayan Box shirt in October 2024, drawing inspiration from Kenkoy comic art and Filipino culture.
Adam wants to go much beyond clothing and shoes in the future. He expresses a desire to see his company’s logo on laptops and water bottles to promote Asian culture and its appeal to the general public.
'Shark Tank' Season 16 airs on Fridays at 8 PM ET on ABC
