Thanks for reading, Kiran! Yes, you and Powell make similar points, scarcity is the main value proposition. I believe the Yeezy ecosystem (good music, collaborations, and cultural contributions) can maintain excitement around the brand. Moreover the shoes are of more than acceptable quality, so I think that supports it. I remember buying my first pair of Nike Air Force Ones 15 years ago, and people are still buying them today, for a similar reason.

I totally agree it will be interesting to see how GAP deals with this. One thing that will be interesting is, problems also happen if a product stays premium too long — for example, people stop buying Apple and Samsung phones not because they're less excited, but because they already have good smartphones. (https://www.theverge.com/2019/1/3/18166399/iphone-android-apple-samsung-smartphone-sales-peak) For iPhones in particular, customers replace them less and less frequently. (https://markets.businessinsider.com/news/stocks/apple-stock-price-iphone-purchases-not-2018-12-1027785992#)

In context, I know 3% doesn't sound like a lot, but it's not insignificant — back of napkin math, Reebok also only makes 6%. I have not dug into this, but I'd be willing to bet they have a long more marketing dollars and infrastructure (not to mention brand reputation!).

Glad you enjoyed the read and got something out of it.