Not too long ago, Australian millionaire Tim Gurner made headlines worldwide with his controversial statements regarding millennials, who, in his opinion, couldn’t afford to buy a house due to their obsession (all appearance and no substance) with avocado toast. While it is true that the generation born between the early ’80s and late ’90s is objectively less inclined to make the same investments as their parents, we are certainly not talking about a segment of society that is so clueless. An example in this regard is represented by the sneaker re-selling business.
If you are a fan of this cornerstone of sportswear, you have probably found yourself at least once on platforms like StockX, Stadium Goods, Grailed and Goat. You may have also considered the possibility of queuing for days (which, for the online world, translates into years of practice with coding) to get your hands on a pair of limited edition Air Jordans. What you probably do not know is that behind this passion lie buying and selling dynamics that currently, according to Business Insider, are globally worth over $1 trillion. A trade among enthusiasts and connoisseurs built on 30 years of streetwear culture (which feeds on the hype generated by limited editions) and that only recently – after attracting the interest of more and more celebrities and fashion brands – is crossing the mainstream threshold. Stadium Goods, for example, was acquired by Farfetch for over $250 million in 2018, while StockX boasts investors like Google, Eminem, and Steve Aoki. While it is true that, through these types of platforms, hundreds of people around the world manage to get their hands on deeply exclusive drops, it is equally true that, given the profit margins, more and more individuals are moving to the other side of the business, making re-selling a real profession. In most cases, these are very young, hyper-technological, and super-informed individuals who run businesses worth hundreds of thousands of dollars from a suburban bedroom. In November 2015, to celebrate the 15th anniversary of Shady Records, Nike released 10 pairs of Air Jordan 4 Retro "Eminem Carhartt" on eBay, which were sold for a total of $227,522 (all proceeds went to The Marshall Mathers Foundation). Today, a pair of these sneakers can be found on StockX for as low as $10,000. In May 2017, Nike also released 5 pairs of Air Jordan 11 Retro in honor of baseball player Derek Jeter, inside a pop-up shop set up a stone’s throw from Yankee Stadium, where Jeter was about to play his final game. For the occasion, a real lottery was organized and among the lucky winners, some earned $40,000 by reselling a single pair at Stadium Goods. However, it must be considered that unlike gold or real estate, a sneaker is still made of leather and rubber. Therefore, how much can its buying and selling represent an investment that will last over time? According to Emma Trotter of PlayUSA, who recently conducted a study on the subject, “this trend will continue to expand as more and more celebrities and athletes enter the footwear sphere.” After a 2018 that, according to the HighSnobiety report, reached an all-time high in sneaker re-selling, it is difficult to say for certain which models to focus on for a greater economic return. However, as of today, without considering the many new releases expected in the coming months, here are three that stand out from the competition:
Nike Jordan 1 Retro High x Off-White University Blue. With a market price of $190, the value of the first drop in the collaboration between Nike and Virgil Abloh’s brand has increased by 689% reaching an average quotation of $1,500.
Nike Air Max 1/97 x Sean Wotherspoon (Extra Lace Set Only). A model launched in 2018, whose price has now soared by 432%: from $160 to $851.
Nike Air Presto Off-White x Nike Presto “Polar Opposites – Black. Another release in collaboration with Off-White (which explains why the world of fashion today literally revolves around Virgil Abloh) was initially put on the market in 2018 for $160. Today, it is not found for less than $825, registering an increase of 416%.
In addition to suggesting that we take care of the sneakers we have in the closet, these data teach us that, among all brands, Nike has no equal. It is followed by adidas, with its Yeezy by Kanye West (which record an average increase of 232% on the market price) and surprisingly Converse, whose latest collaboration with Off-White for the classic Chuck Taylor model takes the third place on the podium with an increase in the starting price of 146%. The most shocking part of this system, from which, we remember, brands gain nothing except prestige, is that most likely these are shoes that will never be worn.