When it comes to investment, sneakers is not the first thing that comes to mind. In fact, a lot of people assume that purchasing sneakers is a waste of time and money but that data was 10 years ago. Today, the way we view sneakers has changed. Could it be that the latest pair of branded sneakers that you have can already be as valuable as an Hermes Birkin bag? Do the sneakers of today retain their value, and could the prices skyrocket overtime?
Experts from the UK and luxury strategies from Moola Forum have assessed different types of sneakers that were released in the last 10 years and here is their verdict. According to their research findings some of the shoes that people collect does have a high resale value and some that are kept in good condition can have a resale value 60 times their original price. One of the most priced sneakers released is the Nike SB Dunk Low Reese Forbes Denims, it was originally sold at $65 in 2002, today this item is already priced at a whopping $4,000. The same thing is true for the Yeezy 2 Red Octobers that first retailed for $250 in 2014 and is now being sold at a hefty price of $5, 655. Come to think of it, who would have thought that a pair of sneakers would be a good return of investment?
Sneaker heads and people addicted to the latest edition shoes is here to stay, and the trend shows no sign of dying down. This is not to say though that all kinds of sneakers or rubber shoes that you come across can be sold for a very good price later on, it just means that if you are able to study the market well, then it is possible for you to make the right choices. Before purchasing sneakers, make sure to study the history, the maker and the probably future of the sneakers just like how you buy stocks in the trade market. In the last 6 years, there has been a steady growth in the footwear resale, luxury sneakers are sold at a whopping price thanks to the genius of the likes of Kanye West- the interest for sneakers has been revitalized. The Yeezy Boost 50 collaboration with Kanye West with Adidas has definitely increased the interest and love for sneakers. Yeezys are considered as worthwhile investments to add to the collection and some of the pairs that sneaker heads usually want to get their hands upon include the Yeezy Boost 350, the Yeezy Boost 350 v2, Yeezy Boost 750, and Yeezy Boost 950.
The way we perceive sneakers have changed, today we don’t simply buy sneakers for sports activities, we now purchase sneakers and running shoes as part of our identity and as a fashion statement. It means, that even as you jog in the morning you should still look well put together.What at first was a mere hype became a lifestyle, allowing Kanye West to gear away from bankruptcy and back to billionaire status. Sneakers could in fact be a good form of investment, but not with every old pair of shoes or new pair of shoes you purchase. There is an entire system to it, before you purchase sneakers you need to know the story of the sneakers, the designers and the reaction of the public towards it. The value of sneakers is highly unpredictable, usually it is just the limited edition sneakers that fetch a good price after several years. There are also types of sneakers that lose their value over time despite being the most coveted a year ago. Remember that even if you have a high value sneakers, you need to have a network of influential buyers who would want to purchase it at a much higher value later on before you make a good profit out of it.
What determines the value of the Sneakers?
The supply and demand model is the greatest factor. The lower the number of sneakers created, the rarer the shoe the higher the demand. Everyone should want them, but could not easily gain access. It takes well established and marketed brands as well. In the case of Yeezy, the first edition pairs and the first set of collaboration was really expensive, but the ones that came out in mass quantities are no longer as valuable. The physical condition of the shoes is also very important to make sure that the value remains, so the sneakers if you plan to resell them at some point, should remain unworn. Once these shoes are worn they immediately lose some of their value, unless of course the shoes is worn by a famous athlete in the NBA or the likes of Michael Jordan or Lebron James. If the shoes is connected with a famous person, you can increase the hype and value. Hype is really the point of the matter. The story of the brand, the story of the shoes and how it was presented to the public has a lot to do with how the prices will go later on. People who plan to make a living buying and reselling sneakers have to do in depth study, they need to be smart about it to avoid mistakes. It will also be about how the seller will market it to others, what platform they will use and how they will convince other buyers that the sneakers they are offering is worth double or triple. It all boils down to effective storytelling.
Luxury Brands and Sneakers
A lot of big luxury brands like LVMH and Moët Hennessy Louis Vuitton realized the potential of sneakers and street wear, and quickly worked their way into the market. Today, almost every luxury brand that we know have their own version of sneakers. Due to the number of people hyping the sneakers, they remain ever popular and prices remain high.
Some of the sneaker sellers try to get their hands on them as early as possible, to make a quick buck most of these re sellers purchase priced sneakers at cheap retail and then sell the sneakers for outrageous prices. The Air Jordans for example from the first Virgil Abloh’s Off White x Nike Collaboration was only sold at retail for $250 but because of the hype and the ability of big retail brands to get hold of it, the pair already cost $1500 each. Sneakers have come to mean big money, even teenagers who are experts online have started creating their own set of coding bots, to get hold of 50 pairs of Yeezy on every release and in different sizes, so they can sell it for a much higher price.
The sneaker industry is based on the hype, the story telling of these great PR strategists. Sneakers could become a good form of investment only if you know where to look and how to start and of course if you are a pure and true sneaker head yourself willing to understand the ropes of the business and the passion of people behind it.