Check out the fashion industry’s fastest growing and most lucrative item: Sneakers
The buying and selling of sneakers is a business that currently has the potential to reach $ 30 billion worldwide by 2030. Limited supply, sustained demand, and a fast-paced global tech market are doing the rest.
Big shoe brands tend to release a small number of their most iconic designs, adding to the demand and anticipation. For example, Adidas only produces 40,000 pairs of each Yeezy version, Forbes reports. This tactic dates back to 1985, when Nike ditched the Air Jordan 1, a culture-changing sneaker that sold faster than the company could make, according to Bloomberg’s analysis.
Barbara Davidson of SavingSpot’s Consumer Reselling Team tells FashionUnited that âalthough sneaker preferences change with every season, with every new product launch, with every new celebrity promotion, and with every massive marketing campaign. , we see consumer trends constantly changing â. âSneakers are one of the fastest and fastest growing items in the fashion industry,â she adds.
The pandemic has boosted demand for collectible sneakers around the world
The pandemic has opened up online markets to sneakerheads in ways we’ve never seen before. Peer-to-peer selling increased because there was a long period of time that shoppers couldn’t physically go to stores to test and try on sneakers.
This new interest in buying second-hand sneakers has made sellers of rare and collectible sneakers more popular than ever, Davidson points out.
Cowen reported that some of the fastest growth in the secondary market occurred in the months after the start of the Covid-19 crisis. In this regard, sneaker resale platform StockX has a hypothetical index fund of 500 sneakers, which its senior economists have found to outperform the S&P 500 by a few percentage points.
Sneakers as a safe haven
Sneaker dealers have been treating shoes as investment vehicles for years, while StockX, one of the most popular resale platforms, tries to recreate the experience of stock exchange trading with Wall Street lingo, replacing âbuyâ and âsellâ with âofferâ and âask. Goat, a competitor to StockX, offers buyers the ability to keep purchased shoes in stock as they increase in value. Rally, a platform that searches, verifies and acquires the most outstanding items from collections and individuals around the world, then takes those items and turns them into stocks that investors of all sizes can buy to build their portfolio. This platform started out as a place where investors could buy shares of rare cars, now moving into art, watches and sneakers. Some of his most recent offerings in this area have been a pair of Kobe 2s, as well as a pair of Air Jordan 6s worn by the game and signed by Michael Jordan himself; the shoes Zion Williamson wore in action; and a 1972 prototype of Nike’s Moon shoes.
Meanwhile, the five best-selling sneakers on StockX around the world in 2020 according to buy-side transactions were the Air Jordan 13 Retro Flint 2020, the Air Jordan 1 Retro High Black Game Royal Toe and three shoes from Kanye, including his Adidas. Yeezy Boost 350 V2 Cinder, Zebra and Yecheil. “The idea that sneakers are [also] now an emerging alternative asset class that can be bought and sold for both collection, price appreciation and investment, âa recent report from Cowen revealed.
Which countries pay the most for classic shoes?
According to SavingSpot’s analysis, more millennials view fashion as an essential expense than Baby Boomers and Gen Xers. So even though classic sneakers are an expensive buy (going over the $ 100 mark in many cases) , the SavingSpot team “noticed a tendency for young people to spend significantly more than older buyers – even if they don’t necessarily have more disposable income. They are just more likely to save in other areas. lifestyle so they can keep up to date with sneaker trends.
Location plays a big role in terms of affordability. According to World Bank data, buyers in the United States have access to the most affordable Nike Air Jordan 1s, costing just 1.95% of the average monthly salary. But consumers in India would have to spend 100 percent of a month’s income to buy a pair, the SavigSpot team says.
Thus, Brazil is home to the cheapest Puma Suede ($ 69.17), followed by $ 70 in the United States. and Denmark.
Image: Which countries pay the most for the classic shows chart. Credits: SavingSpot.