Today, January 8, major Nike retailers in the Philippines will release the Flyknit Air Max. The confirmed price for these running shoes? P12,595. Twelve thousand five hundred and ninety-five pesos. I had to pick my jaw from the floor, not solely because of the obvious high cost, but because of what it entails for the price of the Nike Kobe 9 Elite "Masterpiece" once it hits the local shelves.
Nike Kobe 9 Elite Masterpiece, left. Nike Flyknit Air Max, right.
You see, the Flyknit Air Max retails at $224.99 in US Dollars. Meanwhile, the Kobe 9 is expected to retail this February 8 at $225. All things being equal, the price comparison can only imply one thing: the price for the Kobe 9 Elite will most likely be P12,595 as well. Ouch!
For Filipinos who wish to cop the Kobe 9 Elite on release day, they may find it difficult to part with their twelve grand. Which makes sense, since you can already buy three to four pairs of entry-level or old stock basketball shoes for twelve thousand, or two pairs of your average basketball shoes for the same price.
But here's the more interesting, and wallet-wrenching, part. The price will be adjusted as far as online retailers in the Philippines are concerned, particularly those online shops that offer payment in either Philippine Peso or US Dollars. Their default price point for the Kobe 9 Elite, as with most other shoes they sell, will be in Peso denomination. This means that if a buyer wishes to purchase the Kobe 9 Elite in US Dollars, P12,595 will have to be converted to US Dollars. Assuming that the exchange rate applied is P43 to $1, the price of the shoes in US Dollars may reach $292.91 for these authorized resellers. That's a $67 difference (or P2,881)!
And if you think about it for a while, $225 is equivalent to just around P9,675 (exchange rate of P43 = $1), not P12,595. Of course, others may say that you also have to consider the costs of importation, including taxes and distribution charges. Still, all these things go to show that higher-end shoes cost more in "developing" or relatively poor countries such as the Philippines than in "developed" nations such as America.
UPDATE:
January 8, 2014. 10:49 am. As per the response of Stadium PH (one of the authorized Nike resellers in the Philippines) in its recently uploaded Facebook promo photo of the KB9 Elite Masterpiece, the shop won't be selling the shoes at P12,595. Which is intriguing, since Stadium PH sold the Nike Flyknit Air Max at P12,595. Again, KB9 Elite = $225. Nike Flyknit Air Max = $224.99. Why would there be a significant difference in price between the two? I assume the stocks for the Philippine market for both shoes were made in China and will be shipped from China. Still, I sense an incoming anomaly.
January 21, 2014. 4:44 am. Come to think of it, the Air Jordan 5 3Lab5 black/infrared sold here for P10,495 even if its price in US Dollars is 225. So the SRP of the Kobe 9 Elite Masterpiece could either be P12,595 or P10,495. Of course, I'd rather have it at the cheaper choice. There is hope!
Nike Kobe 9 Elite Masterpiece, left. Nike Flyknit Air Max, right.
You see, the Flyknit Air Max retails at $224.99 in US Dollars. Meanwhile, the Kobe 9 is expected to retail this February 8 at $225. All things being equal, the price comparison can only imply one thing: the price for the Kobe 9 Elite will most likely be P12,595 as well. Ouch!
For Filipinos who wish to cop the Kobe 9 Elite on release day, they may find it difficult to part with their twelve grand. Which makes sense, since you can already buy three to four pairs of entry-level or old stock basketball shoes for twelve thousand, or two pairs of your average basketball shoes for the same price.
But here's the more interesting, and wallet-wrenching, part. The price will be adjusted as far as online retailers in the Philippines are concerned, particularly those online shops that offer payment in either Philippine Peso or US Dollars. Their default price point for the Kobe 9 Elite, as with most other shoes they sell, will be in Peso denomination. This means that if a buyer wishes to purchase the Kobe 9 Elite in US Dollars, P12,595 will have to be converted to US Dollars. Assuming that the exchange rate applied is P43 to $1, the price of the shoes in US Dollars may reach $292.91 for these authorized resellers. That's a $67 difference (or P2,881)!
And if you think about it for a while, $225 is equivalent to just around P9,675 (exchange rate of P43 = $1), not P12,595. Of course, others may say that you also have to consider the costs of importation, including taxes and distribution charges. Still, all these things go to show that higher-end shoes cost more in "developing" or relatively poor countries such as the Philippines than in "developed" nations such as America.
UPDATE:
January 8, 2014. 10:49 am. As per the response of Stadium PH (one of the authorized Nike resellers in the Philippines) in its recently uploaded Facebook promo photo of the KB9 Elite Masterpiece, the shop won't be selling the shoes at P12,595. Which is intriguing, since Stadium PH sold the Nike Flyknit Air Max at P12,595. Again, KB9 Elite = $225. Nike Flyknit Air Max = $224.99. Why would there be a significant difference in price between the two? I assume the stocks for the Philippine market for both shoes were made in China and will be shipped from China. Still, I sense an incoming anomaly.
January 21, 2014. 4:44 am. Come to think of it, the Air Jordan 5 3Lab5 black/infrared sold here for P10,495 even if its price in US Dollars is 225. So the SRP of the Kobe 9 Elite Masterpiece could either be P12,595 or P10,495. Of course, I'd rather have it at the cheaper choice. There is hope!
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