Foot's Paradise

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As Nike faltered, Reebok galloped ahead. Beginning its life in the U.S. as a subsidiary of a British shoemaker founded in the 1890s, Reebok, based in Canton, Mass., is now a publicly held firm that owns its former parent company. Its mid-'80s success came from inventing and persistently exploiting the market for women's aerobic shoes, a shift in the business that Nike had completely missed. Reebok's revenues zoomed from $4 million in 1982 to $900 million by 1986.

This year Nike, which Knight has invigorated by decentralizing decision making and encouraging innovation, has gained a second wind with dozens of new models in 24 footwear categories. Nowadays any top contender in the industry must constantly upgrade its products (almost all of which are designed in the U.S. but made in Asia) just to stay in the race. Though industry analysts estimate that 80% of all sneakers are used for nothing more taxing than taking out the garbage, consumers want the illusion of having a competitive edge.

Shoe designers finely tune each category of shoe to its particular activity by studying human motion and physiology. Reebok's baseball shoes, for example, have a specially designed cleat pattern called SpeedSlot for fast starts and stops. Crafty Nike marketeers have also invented in-between products, most notably the cross-trainer shoe, designed for an all-around athlete. Cross- trainers offer enough lateral support for the sideways motions of aerobics and basketball but are light and flexible enough for jogging too.

On the cutting edge of shoe science, Nike and Reebok are engaged in a battle that is based on thin air. The Air Nike line of basketball shoes, which contain pockets of compressed gas in the soles to provide cushioning, became an instant hit two years ago when transparent plastic windows were added to show off the air cells. The most popular model is the Air Jordan (price: $110), named for Chicago Bulls superstar Michael Jordan, who receives an undisclosed royalty for each pair of shoes sold. This year Reebok is fighting back with its Energy Return System, found in its ERS Showtime model (price: $79). Its soles contain an arrangement of cylinders, made of a synthetic called Hytrel, which compress on impact and provide extra spring. Taking the next engineering leap, both Reebok and Nike have developed shoes with inflatable sides and collars for extra support.

Not every manufacturer is chasing the perfect technology. L.A. Gear has become a major contender by selling shoes mostly for show, not sport. Adorned with bright-neon trim, buckles and rhinestones and worn by svelte blonds in the company's TV commercials, L.A. Gear's shoes suggest sex and Southern California. One of the brand's top sellers is Street Brats ($60), with contrasting-color laces, marbleized leather and tongues that stick straight up. L.A. Gear was started in 1979 by Robert Greenberg, 49, a hairdresser turned entrepreneur who keeps his finger on the pulse of California shopping culture. Says he: "I'm a mallaholic. I need to go to a mall at least twice a week, or I get the shakes." Sales at L.A. Gear accelerated from $11 million in 1985 to $224 million in 1988 and are expected to more than double this year.