Resell sneakers – Potential market with profits of more than $ 1 billion

Recently, the three biggest names in the resell sneakers market – Stadium Goods, Flight Club and GOAT) have reported certain structural changes. Stadium Goods, a brand that sells famous shoes in New York, received it An undisclosed investment from LVMH Luxury Ventures. A venture capital arm of the luxury group Moet Hennessy Louis Vuitton. At the same time, the Flight Club – a direct rival and neighbor of Stadiums Goods in New York – also caused a stir with news about the merged with GOAT Based in LA.

A close match between GOAT and Flight Club with a $ 60 million Series C grant is completed before public announcement. Thanks to that, the total capital of the newly formed partnership is more than 97.6 million dollars. A number is not small with resell sneakers like this. According to some sources, before the merger, GOAT was Successfully mobilized outside capital with more than 37.6 million USD.

While public awareness of the enormous potential of resell sneakers has only grown in recent months, this market has been on the boil for a long time. With stores in Virginia and Los Angeles, Round Two also opened a new store in New York last October. That same month, the Grailed retail platform also launched Heroin – a dedicated destination for the women’s fashion resell market.

In the minds of both investors and sneaker enthusiasts, shoe resell is seen as an underutilized profit opportunity. Sneakerheads are just trying to get new shoes. However, concerns or interests that attract the attention of business organizations are other concerns. Here’s what GOAT / Flight Club, Stadium Goods / LVMH and all the recent activity in the resell sneakers market. Let’s dive into this newly developed and promising market with EACHSHOES!

Resell sneakers – A $ 1 billion market and growing …

According to many news sites, the market resell globally has a current value of more than 1 billion dollars. The number is extremely impressive for this market. However, it’s quite important to note that this number is based on each pair sold in different ways anywhere. That’s what we can count through mainstream transactions. The places to buy familiar sneakers like GOAT / Flight Club, Stadium Goods, StockX, eBay …). And hundreds of other retail sneakers do contribute to this huge number. In addition, there are other sneakers exchanged between individuals such as acquaintances, friends, close relationships … this profit figure may be even higher.

At first glance, $ 1 billion is just a pretty small amount of the general sneakers market. However, $ 1 billion is still an impressive number if only for the resell field. And it has sparked a competition between sneakerheads, and collectors find ways to get more hot products.

There is some precedent for reselling certain products that are popular in many different markets. Selling event tickets is probably the most successful example of this. Companies like StubHub (acquired by aBay in 2007 for $ 310 million) earns billions of dollars per year in transaction fees by providing a platform for buyers of limited numbers of event tickets to find more efficient buyers .

Speculation benefits from sneakers …

The easily and efficiently authenticated tickets for authentic products. These tickets are limited by many external factors for the issuer and also the resellers. Basically, these tickets are sent to private mail at no cost. However, they do not apply to sneakers.

Think concert tickets. These tickets are sold limited by different batches. No more tickets have been released due to the limited space of performance venues. They are also limited in terms of time. If you buy them on October 28, they won’t be valid the next day. And that doesn’t apply to resell sneakers at all.

When the Air Jordan 1 was posted on the GOAT website on October 9, 2013, it immediately became a small boat in a giant ocean. The meager quantity of this shoe, and the huge demand for it, has made it soaring in price. Unlike concert tickets, the age of sneakers is not limited. And most importantly, they also show the class of the buyer. The rarer the pair with a high value will make others admire and be more attracted to you.

Matt Powell, a sports industry analyst at NPD Group, once said: “This case is like the“ Achilles Heel ”of the sneaker industry. The wealth and fortune of resellers are driven by many factors outside their realm. If the shoe has too much stock on the market, the resell will definitely not be a deal. ”

Jordan captured more than 90% of the resell market about four or five years ago, but now they have largely declined. The reason is simply because Jordan currently has more volume produced versions. And the development of many other brands also makes Jordan no longer the dominant resell product in the market. The number of issues each brand’s sneakers are releasing affects resellers. No one believes that after just waking up one night, the “Beluga 2.0” Yeezy 350 V2 can cost up to 418 USD. It can be said that resell sneakers is an uncompromising race where the majority of sneakerheads or resellers in general depend on the manufacturer.

Amazon for sneakers

The Amazon website platform with thousands of people trading all kinds of different items is sure to know. If so, what would a platform exclusively for sneakers be? A single e-commerce site that brings together all transactions from around the world. Reliable transactions to be completed to final payment. From famous resellers who are hidden among the community, to famous brands such as Stadium Goods, GOAT, Flight Club or StockX … are present on this platform. Why not? This will make the process of trading, buying and selling shoes a lot simpler. However, this is just a hypothesis of EACHSHOES. The possibility of this platform actually being present is still the story of many years later.

Epilogue

In short, resell sneakers are not new to sneakerheads. Revenue over the past time to more than 1 billion shows that the attraction of this market to investors is not small. Just as GOAT merges with Flight Club and LVMH invests in Stadium Goods, this market’s potential will be greatly increased. The volatility of this market is still out of the control of both resellers and manufacturers. The NMD version, for example, was once a stormy shoe, but eventually disappeared from the hype market. However, no matter how young this market is, this is still the perfect time for you to observe their development.

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