How New Balance tests or ‘smashes’ their latest sneaker

From athleisure enthusiasts to sneakerheads, the footwear industry has grown into a multi-billion dollar business. Top players like Nike (NKE) and Adidas (ADDYY) have turned to design innovations and athlete partnerships to keep up with the ever-evolving zeitgeist that is sneaker culture.

New Balance plans to stay ahead of its competitors through a combination of science, nostalgia, and community feedback.

Yahoo Finance’s Brad Smith gets an exclusive tour of the New Balance Sports Research Lab where CEO Joe Preston demonstrates how researchers smash-test sneakers. The process involves a machine literally smashing the midsole of the shoe, simulating the impact of a runner.

Watch the video above to hear what Preston says the next big revolution in sneakers is going to be.

Be sure to check out the full interview with New Balance's Joe Preston here.

Editor's note: This article was written by Cindy Mizaku and Shelby Boamah.

Video transcript

[MUSIC PLAYING]

MADISON MILLS: New Balance is back and taking on heavyweights, like Nike and Adidas, as the sneaker battle as always continues to be hot. Our very own Brad Smith took a trip to Boston to speak with the New Balance CEO and President Joe Preston.

They talked about how his company is innovating to keep up with the competition for this week's Lead This Way. Brad, thank you so much for joining us and bringing us this fantastic piece, talk to me about what the biggest takeaway was for you.

BRAD SMITH: I mean, the biggest takeaway is that New Balance is back. I mean, this is a 1909-founded company. It was purchased by Jim and Ann Davis decades later. And what they did was they essentially said, this is more than shoe insoles. This is all about putting a shoe, putting a silhouette around the insole that they were known for.

That was the business that they purchased-- and for Joe Preston, trusting him with stewarding this company forward into the next generation. It's a company that, of course, had to capitalize on Taylor Swift wearing the latest iteration of the retro shoes around, one of the major silhouettes that took off last year.

It's a company that's seen a rise in popularity among the silhouettes that get purchased on resale platforms as well. StockX, Goat Group data that we've even seen has seen them in the top 16 selling silhouettes, repeatedly, and especially over the course of the last year.

And I think one of the findings that I was really able to take away from the conversations with Joe was really just based around how he is capitalizing on these moments, where we're all talking about the dad shoe, the dad hats, the dad bodies, the "Call Her Daddy" podcast, all of those things, and more, and making sure that New Balance is at the center of the conversation and also continuing to push the envelope with even more research. Some of that research and innovation, you're going to be able to see within this clip right here.

JOE PRESTON: This is our Smash Lab, and this is the brand new facility that was built within the track. It's our new Innovation Center. And this helps to test the resiliency of the midsole. It helps to test energy return, and it's used throughout the development process to make sure that we have the optimal amount of cushioning in the midsole.

BRAD SMITH: How many times do you kind of have to go back and forth to say this is not enough of the bounce that our users, our runners are looking for?

JOE PRESTON: So we have this. And then we also have wear testing. So we have athletes that are wearing the product and everyday runners that are wearing the product. And we take that qualitative feedback. We take it with this quantitative feedback that's fed into our developers.

BRAD SMITH: What is that next chemical compound that you're really experimenting with now that gets you excited about the future for New Balance?

JOE PRESTON: We do believe that the next big revolution is going to come in materials. I fundamentally believe that. And I think it will come plant-based, or is something that will revolutionize the industry.

BRAD SMITH: So you saw that bounce right there. That was really showing the disbursement of the materials that go into the sole of our shoe and give us that rebound. What is that feeling that you look for when you go for a run, Seana, for instance?

SEANA SMITH: I would love-- you know, you're never going to turn down any sort of bounce. I have never, though, run in New Balances. I was going to say I have to try that out after seeing the Smash Lab, and exactly what you could see here in that sole.

But I think you're always looking for comfort. You're looking for something that gives you an extra spring in your step. And I think that is what New Balance needs in order to capture more of those athletes.

And you were just mentioning before we went to air, that they have a number of key partnerships with athletes who have had a tremendous year that's going to help sales.

BRAD SMITH: I mean, go down the list. You've got Coco Gauff coming off of a US Open win last year. You've got, of course, Shohei Ohtani, now the largest MLB contract that we have seen, New Balance.

You can go down Sydney McLaughlin, who's going to be participating, and competing, and representing Team USA in the Paris Olympics this summer as well, who is already a gold champion medalist as well for the US in the relays. And so she's got an exclusive partnership. I had to pick up some of those shoes for my own significant partner, so making sure that we got in on that special celebration.

SEANA SMITH: And Brad has his New Balances on right now, too.

MADISON MILLS: Rocking the kicks.

SEANA SMITH: Gotta lift them up. There you go.

MADISON MILLS: And if you watch the video, you can see Brad running at an all-out pace while conducting an interview. So I highly recommend, folks. Watching that, Brad, it was a sight to see. Thank you so much for joining us, and, of course, to Brad and the great production team behind him on this piece.

Stay tuned for Brad's full interview with Joe Preston that's coming out tomorrow at 10:40 AM Eastern. You won't want to miss it.