TED Talk: how the resale of rare sneakers turned into a billion-dollar market
Stretch your abibas, take out the seeds and sit down on the courts more comfortably: Josh Luber (a great name for the dude turned on sports shoes), the founder of the analytical company Campless, engaged in collecting and analyzing data from the secondary market of collection sneakers, went to the TED stage to tell how resale of someone's shoes has become a billion-dollar market in the United States alone:
Air Jordan 3 Black Cement sneakers were first introduced in 1988, re-released four times since, and changed the world of sports shoes just like the iPhone, the world of phones. In 2011, when Jordan 3 Black Cement was released for the last time at a price of $ 160, they were sold out in minutes, because people in different countries spent the night near sports shoe stores a few days before the sales started. And just a couple of minutes later, thousands of pairs were on eBay at a price 2-3 times higher than retail. So Nike creates a market for sneakerheads ("turned on sneakers") - people collecting sneakers.
For brands, sneakerheads are a very important group. They create a trend like Apple fans, for example. After all, who else would ever think to buy sneakers from the movie “Back to the Future” for $ 8,000? And although this, of course, an anomaly, the secondary market of sneakers - certainly not. It was formed for 30 years and began as an underground culture, only a few people who loved the shoes a bit too much, but in 2015 only nine million pairs of shoes with a turnover of 1.2 billion dollars were resold in the USA alone. This is 2% of the global sneaker market of $ 55 billion, according to estimates by the Financial Times in 2015.
')
The most popular model of 2015: Air Jordan 11 Retro Legend Blue with a turnover of $ 3.7 million on eBay
This is a very strange, but very curious market, which resembles a stock exchange - but, as it were, in the Wild West version. Or caps for adults. This is a legitimate and affordable opportunity to invest, if you do not have 18, you do not have documents or the desire to pay taxes and report to the inspection bodies - a democratized stock exchange, while unregulated.
Sneckerheads form portfolios of their sneakers as investment portfolios that have a certain value, determined on the basis of the price dynamics of its components. On the StockX website, you can even track the daily market dynamics:
Josh knows 48 online stores where you can resell collectible "Nikes" - and even flea markets, kiosks, sneakerhead congresses, resale sites, Facebook, Instagram, Twitter - literally everywhere where sneakerheads can meet, sneakers are bought and sold. No rationality, transparency, sometimes even no authenticity. If the stock market were arranged in the same way, Apple would buy stocks in 100 different places, and every time, walking down the street, you would hope that you would see someone shod in Apple’s stock without knowing where the price is better or even then, are they real?
One day, Joshu was written by a worried father who thought his son was selling drugs, and later discovered that he was selling sneakers. For collectible sneakers even sometimes killed. Wild West, in short.
The value of the resale market, as we already know, is 1.2 billion dollars. Nike, including the brand Jordan, accounts for 96% of all sneakers sold on the secondary market. Absolute dominance. Sneakerheads adore Jordan. Profit in the secondary market is about a third. This means that sneakerheads earned $ 380 million by reselling Nike sneakers last year. For comparison - the net profit of the brand Skechers, released in 2015 to second place in the United States, surpassing Adidas, amounted to $ 209 million. This means that Nike buyers earn almost twice as much on their resale as their closest competitor. If you invested in Air Jordan 3 Black Cement in 2011, you can either go on stage, like Josh - or you can increase your capital by 162%, twice as much as S & P, and 20% more than Apple .
To bring down this market, Nike is enough to start producing new lots of sneakers without restrictions - but this is not necessary for either the sneakerhead or Nike himself, who in their face receive an army of fans who create HYIPs and promote them for free.
In the comments on the performance of Josh dvizhuhu around collectible sneakers immediately called a bubble. There is a similarity and truth, but the nature of this phenomenon is completely different. Market bubbles inflate the market without changing its content. The cult of rare sneakers is rather a derivative of the market, small relative to its size - and therefore not threatening to overheat, but characterized by high profitability - which makes it possible to maintain interest.
So a small but fat snyheadhead business will survive at least as much as Nike - or at least how much it wants to support it. In the end, this is not the only brand that produces product lines that are immediately scheduled to be collectible - almost everyone does it, from car manufacturers to toys . According to Josh, the demand for a stock exchange has already matured, which will unite all fans, buyers and dealers in one place and will allow it to protect itself from fakes.
A much more interesting comment seemed to me about how it all fits with stereotypes about women's love for a lot of shoes and shopogolism: when there are tens and hundreds of pairs of shoes in a girl’s closet, this is fraud, when a guy has a collection and “Sirius business” .
It’s already too late to argue about whether this is necessary for us - snyckheads have long been among us:
Thanks to this story, the runet received another batch of lulz , and dealers - someone's monthly salary for a couple of days standing in line. Everyone is happy.
In the volume of shipments of Pochtoy.com, footwear also constitutes a significant share: unfortunately, the service does not keep accurate statistics, but they repack and send to Russia dozens of pairs of shoes purchased in the USA every day. Many customers send 5-7 pairs at a time.
Traditionally, there is a $ 5 discount coupon for Pochtoy from the USA for all those who read this far: supergeek .
Air Jordan 3 Black Cement sneakers were first introduced in 1988, re-released four times since, and changed the world of sports shoes just like the iPhone, the world of phones. In 2011, when Jordan 3 Black Cement was released for the last time at a price of $ 160, they were sold out in minutes, because people in different countries spent the night near sports shoe stores a few days before the sales started. And just a couple of minutes later, thousands of pairs were on eBay at a price 2-3 times higher than retail. So Nike creates a market for sneakerheads ("turned on sneakers") - people collecting sneakers.
For brands, sneakerheads are a very important group. They create a trend like Apple fans, for example. After all, who else would ever think to buy sneakers from the movie “Back to the Future” for $ 8,000? And although this, of course, an anomaly, the secondary market of sneakers - certainly not. It was formed for 30 years and began as an underground culture, only a few people who loved the shoes a bit too much, but in 2015 only nine million pairs of shoes with a turnover of 1.2 billion dollars were resold in the USA alone. This is 2% of the global sneaker market of $ 55 billion, according to estimates by the Financial Times in 2015.
')
The most popular model of 2015: Air Jordan 11 Retro Legend Blue with a turnover of $ 3.7 million on eBay
This is a very strange, but very curious market, which resembles a stock exchange - but, as it were, in the Wild West version. Or caps for adults. This is a legitimate and affordable opportunity to invest, if you do not have 18, you do not have documents or the desire to pay taxes and report to the inspection bodies - a democratized stock exchange, while unregulated.
Sneckerheads form portfolios of their sneakers as investment portfolios that have a certain value, determined on the basis of the price dynamics of its components. On the StockX website, you can even track the daily market dynamics:
Josh knows 48 online stores where you can resell collectible "Nikes" - and even flea markets, kiosks, sneakerhead congresses, resale sites, Facebook, Instagram, Twitter - literally everywhere where sneakerheads can meet, sneakers are bought and sold. No rationality, transparency, sometimes even no authenticity. If the stock market were arranged in the same way, Apple would buy stocks in 100 different places, and every time, walking down the street, you would hope that you would see someone shod in Apple’s stock without knowing where the price is better or even then, are they real?
One day, Joshu was written by a worried father who thought his son was selling drugs, and later discovered that he was selling sneakers. For collectible sneakers even sometimes killed. Wild West, in short.
The value of the resale market, as we already know, is 1.2 billion dollars. Nike, including the brand Jordan, accounts for 96% of all sneakers sold on the secondary market. Absolute dominance. Sneakerheads adore Jordan. Profit in the secondary market is about a third. This means that sneakerheads earned $ 380 million by reselling Nike sneakers last year. For comparison - the net profit of the brand Skechers, released in 2015 to second place in the United States, surpassing Adidas, amounted to $ 209 million. This means that Nike buyers earn almost twice as much on their resale as their closest competitor. If you invested in Air Jordan 3 Black Cement in 2011, you can either go on stage, like Josh - or you can increase your capital by 162%, twice as much as S & P, and 20% more than Apple .
To bring down this market, Nike is enough to start producing new lots of sneakers without restrictions - but this is not necessary for either the sneakerhead or Nike himself, who in their face receive an army of fans who create HYIPs and promote them for free.
Reaction
In the comments on the performance of Josh dvizhuhu around collectible sneakers immediately called a bubble. There is a similarity and truth, but the nature of this phenomenon is completely different. Market bubbles inflate the market without changing its content. The cult of rare sneakers is rather a derivative of the market, small relative to its size - and therefore not threatening to overheat, but characterized by high profitability - which makes it possible to maintain interest.
So a small but fat snyheadhead business will survive at least as much as Nike - or at least how much it wants to support it. In the end, this is not the only brand that produces product lines that are immediately scheduled to be collectible - almost everyone does it, from car manufacturers to toys . According to Josh, the demand for a stock exchange has already matured, which will unite all fans, buyers and dealers in one place and will allow it to protect itself from fakes.
A much more interesting comment seemed to me about how it all fits with stereotypes about women's love for a lot of shoes and shopogolism: when there are tens and hundreds of pairs of shoes in a girl’s closet, this is fraud, when a guy has a collection and “Sirius business” .
Russia is a generous soul
It’s already too late to argue about whether this is necessary for us - snyckheads have long been among us:
Now they cost 31,500 p., And I will sell from 115 thousand. Either the Chinese, or the guys from VKontakte.
- Who stood in line for new Yeezy Boost
Thanks to this story, the runet received another batch of lulz , and dealers - someone's monthly salary for a couple of days standing in line. Everyone is happy.
In the volume of shipments of Pochtoy.com, footwear also constitutes a significant share: unfortunately, the service does not keep accurate statistics, but they repack and send to Russia dozens of pairs of shoes purchased in the USA every day. Many customers send 5-7 pairs at a time.
Traditionally, there is a $ 5 discount coupon for Pochtoy from the USA for all those who read this far: supergeek .
Source: https://habr.com/ru/post/398919/
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