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How sneaker fans are cashing in on the $2bn resale market

How sneaker fans are cashing in on the $2bn resale market


The reselling aspect of sneaker
culture has changed everything I think now is the biggest
time for sneakers in maybe it’s ever been. There’s people taking money. And rather than investing in a
traditional asset classic stock or bond, they’re
buying sneakers. And they’re investing
in that sneaker. And they’re selling it
on an exchange later. There is a lot of money
to be made in this game. You could make 50 grand
in a weekend, man. I’ve seen people do it. We estimate that there’s over
$2bn in gross market value overall. Footwear being resold
– we think StockX is the leader in this market
with gross market value north of $1bn. We connect buyers and
sellers the same way that the world’s stock markets
connect buyers and sellers. Just like Apple doesn’t
trade at the same price every single day in
the market, nor does a particular sneaker trade for
the same price from day-to-day. Some people’s closets, you look
at it and it’s stock portfolio. There’s some shoes
I love so much, I got 41 pairs of
the same exact shoes. Resell’s all about
product allocation. It’s all about who can get
it and where you sending it that the person is
willing to pay you more. We think this market
can grow from $2bn to $6bn in a relatively
short time period. These days sneakers
are more like stocks than your average trainers. Prices up and down like
Wall Street, some experts value the sneaker resale
market at over $2bn. And it could be $6bn by 2025. Uh, got this drank in my cup. Oh, I fill that cup,
I fill that cup. We’re going to take a
deep look at the industry, show you who and what
is making it move. Is it lost, baby, tell
me what you plan on it. I had lost a job and something
that I enjoyed doing. And I was just trying
to find another job, and I figured selling
sneakers would hold me over until I found
that other job. Well, that other job never came. And we wind up opening this bank
account, get a little $2,500 lot of credit line. And the day I signed
the lease to my store, I had $40 to my name. So in four years, it jumps from
$40 to $20m in sales to 2019. We wind up teaming up
with American Eagle, and I sell part of my
business to American Eagle. And I got Urban Necessities
inside American Eagle. There’s ultimately
some companies here that are earning very
good economic returns on facilitating these exchanges. And I think you’re
seeing investors look at these businesses
very seriously. ComplexCon, 6am right now. There’s literally
nobody here yet. I will be the first person to
purchase the Safari Pack that is coming out… three new different shoes,
should be very profitable. They cost around, I
think, $230, retail, should be able to
sell for about $600. Let’s see how many we could get. We’re also going to be
heading to Chinatown market. Converses are going to be $100. Should be able to sell those
for about $400 to $500. But yeah, I can’t really
disclose how I’m here so early. But shout out to the blood. Thank you. The amount of money you can
make is essentially unlimited. And there are sneaker
resellers that we’ve seen, they’re earning several hundred
thousand dollars a year. The way to make
the most money is if you can acquire
these shoes at retail. We find out where is
it going to release? Who has the shoe? What retailers? How limited is the shoe? And if we possibly get
it before anybody else we are the ones that
create the market. There’s this thing
called “backdoor” now. Backdoor is pretty much getting
a shoe early from a retailer or somewhere like that or
someone that works inside. The chances of
any average person being able to buy a pair of the
shoes that are highly coveted is effectively zero. I have no idea how
kids get on there. On the resell, it’s like,
yo, what are y’all doing? It’s crazy. Demons in my heart, surrounded. But they’ll never take me. Drowning, you’re my lifeline. I’m drowning. You’re my lifeline, baby. Buyers reach out to us. It’s because they know the shoe
is going to go up in value, and you know what the hype
is about, especially now with all the marketing that’s
going on with social media and stuff like that. We’re tracking the
markets, let’s say the StockXs, the Goats,
eBay, and we’re trying to compete with their prices. We try to buy every pair
that comes out of the store. Get your ticket. Thank you. Remember, you guys
heard me already? Chinatown market. Number one, going to be
getting these Chucks. Are y’all ready? Hey, yeah, yeah. Yeah. So, right now we’re getting
the Chinatown market UV Chucks. They actually change colours,
pretty dope shoe, $100 retail. What’s going on, man? What can I do for you? I’ll take a size 10 high. So I just got a size 10,
high, in the Converses, a very, very dope shoe. As you can see, retail
is $100 on the shoe. Should be reselling
for about $500, $600. If you have a lot of capital
you’re able to hold onto them, and then eventually they’ll end
up going up, stuff like that. This is the shoe right here. You want to flash the UV light? They change colours. I’m Dylan Aryvand,
I’m 13 years old, and I started reselling
when I was eight years old. How much money do
you think you’ve made since you started
reselling, if you could estimate? Probably in the five digits. I mostly sell on StockX,
Goat, and the Sneaker Con app. We have a marketplace of
buyers that come to our sites and look for the most
sought after sneakers. Those buyers have
the opportunity to either buy it at its
market clearing price, or to be able to set
a price at which they are willing to buy that item. On the other side
of the marketplace, we have a really dynamic
marketplace of sellers. Consumers, individuals,
businesses, brands that are essentially
selling that same product, and also choosing a price at
which they want to sell at. I think it’s great, because
it’s become the Kelly Blue Book of sneakers,
and now everybody has a fair guideline
that everybody has to try to abide by. Because although you might
be able to get someone to justify your added
expense or different price, this polices what is essentially
like the wild, wild west. If you think the sneaker
business is worth $1bn, just imagine what the
counterfeit sneaker business is worth. The counterfeit business
is insane right now. Literally, you see every single
shoe being counterfeited, and they sell. People in the streets
are wearing them, and you can’t really tell. We literally only
buy from stores. The only thing that can
really sell on our platform is somebody that
has bought and held a shoe that’s in
perfect condition, that we then authenticate
to the buyer. Seller sends it to us, we
authenticate it, and make sure not only that it’s
real, but it’s the right size, the
right condition, it is what it’s supposed to be. And then we send
it to the buyer. StockX, I love y’all, for real. Love y’all. They changed the
whole way I operate. We end up finding a way to
get multiples of these shoes. It’s literally crazy
the way we get it, but we get a lot of
numbers in there. I’ve been my pack, baby. Virgin Louis V on my back, baby. Living fast, dying slow,
that’s the catch, baby. Suicide doors, around
and crash, baby. I do the dash, baby. These are some of the
purchases that we made. A lot of Converse,
these were pretty much the two sneakers of the event
that are actually profitable. Yeah, I ended up
getting a lot of pairs. Yeah, this was pretty
crazy, I ain’t even gonna lie, especially
for being by myself. None of my team is out here,
so I literally did all of this by myself. $870 off Converses,
that’s pretty good. That’s good, right there. Yo, where you at? I’m at the hotel. Yeah, I’m at the hotel. Yo, go back to ComplexCon. I’m going back right now. There’s going to
be a stash, right? Yeah, go back there now. Hurry up. All right, I’m coming now. I’m coming now. I don’t want no drama. They’re allowed? No? Don’t put up with no drama. I got the heat of a conner. And you keep the heat
while I keep you hotter. Where’s he got – where’s that? Where’s parking lot 41? I don’t know. Wait, let me think. Where the … is that at? Through Sneaker Con,
I’ve been able to… I’ve come to every single
show for the last four years. And in the last
two, three years, I’ve probably spent $10,
$11 mill buying shoes. Now keep in mind,
I started with $40. We just wanted to come together
and start, create a place where resellers could come
together with buyers and just buy, sell, and trade. This is the only industry in
the entire world with anything that has to do with buying,
selling, trading a good that accepts all walks of life. Certain retail, you
walk into the store, the second you walk into
the store, no matter what… It don’t matter
how you dress, it don’t matter how
educated you are. The second that
stereotype hits and you ask for something in that store,
they’re not going to help you, bro. They not. That happens to me
all day long, it’s the reason why I dress this way. And more women need more shots. You guys got any other? Other than the zebras,
y’all got any other size? I can’t find them in
the size right here. It’s a young, male-dominated
marketplace at this point. That’s not to say
women won’t, and girls won’t become more active
in this marketplace. Nike, Adidas, Jordan, they’re
making great shoes for girls too, and women, and I think
that women are a major focus inside Nike in particular. That’s where the
influencers need to go, because those are
the people that are going to get more
support than the athlete. The days of the athlete
being the influencers, those are, that’s
becoming extinct. The way a shoe builds
hype or goes from a $200 to a $1,000 shoe or anything
like that, I would say first, it’s going to be social media. The roll-out plans that
brands are doing now, and the competition
between the major brands to make sure that their
endorsers are doing something different to launch a product is
just adding hype to this stuff. Once the everyday human sees
these people wear these shoes they want the shoe. And that’s when the
resell comes in, because you can’t
purchase these shoes, and that’s where we come in,
because we’re going to be the people that have the shoes. Right now, the reason that
a lot of kids, especially the really, really young
kids are able to do this, is because everything
went digital. So the stash, you literally
have to run to a location and scan everything
with your phone, and that gives you the
chance to purchase the shoe. Let’s get it. Let’s go, let’s go. You know what time is it. Resellers are making the most
money out of this, for sure, right now. The manufacturers, they’re
ultimately earning, like I said, halo benefits. The hype and the buzz that’s
getting created in resale is 100 per cent filtering
back into the primary markets. It’s going to be interesting
to see how the companies start to try to monetise. You see now, they’re
putting out more pairs, flooding the market with it. The real business is
ultimately working with brands to become an alternate retail
channel, to literally IPO products into existence, where
brands can release products at a true market
value as opposed to this very antiquated
concept today of retail price. These limited edition scarce
Nike, Jordan, Yeezy, Adidas sneakers are a form of
creative self-expression for a demographic, these Gen-Z,
millennial consumers that are really obsessed with being
unique and differentiated. There’s no shortage
of fans, of people that want this stuff now. Everyone is always waiting for
the sneaker bubble to burst, and I don’t think it’s going
to happen anytime soon. My love for sneakers
will never go away. I think I’ll forever
be tied to Sneaker Con. There is a lot of money
to be made in this game. There’s thousands, if not
millions of transactions happening online per day. It’s nowhere near a bubble, bro. I think that as
StockX or Stadium Goods get these
evaluations, all it does is make people who
want to invest money in soaring markets more aware. We think this is,
kind of for lack of a less cliche
way of saying it, a truly revolutionary
form of commerce. This doesn’t exist outside
of the actual stock market. And we think that this is, not
only will it exist in 10 years, but this is logically how
these certain products should be sold. Our parents may not have
been paying attention to, this Jordan is coming out,
or this AirMax is coming out. But when they read something
in the Financial Times, or something else that there
is a billion dollar industry on the secondary market of
sneakers, that’s something that they’re paying
attention to, and it’s opened up
the eyeballs, it’s opened up sneaker
culture to the masses.

Comments (100)

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  2. Whats the song on 7:28

  3. America's consumerism is revolting!

  4. This economy doesn't seem safe proof to me. There is no skill to it. Basically who ever has the most money wins. It can very easily be Monopolized ending up with just a few people or organizations buying and selling between each other because normal people would no longer have the funds to compete. There is no randomness that allows the average person to continue to compete against more wealthy ppl.

  5. Stockx is a cancer of reselling!!!!!

  6. Shoes have a shelf life, the rubber and glue go bad.

  7. People can barely afford the limited edition price, what do you have to be into? Too be able to pay five times more than retail.
    Another thought, back in the day I remember people getting robbed for their Air Jordan's and they were only $60
    I don't get this world, it's like the gold rush days. Only the beautiful people can afford it.

  8. exactly!!!! we create the market. so stop bricking all these damn shoes. quit being broke and list them for the high and wait. people will buy them !!! @lmtd_customs @lmtdconsignment

  9. them chucks bricked

  10. Weirdos took over the shoe game

  11. You cowards At Financial Times disabled comments on Video "Pack your bags! Italy cracks down on migration." THERE'S ONLY SO MUCH RESOURCES AND WEALTH IN ANY 1 COUNTRY…. All these migrants want to just Pour in to countries without following protocol that our families ifrirnds and ancestors gave their lives making it what it is…. Why don't they do what we done.?.. Stay and fight to make your own country great and the way you like it… the citizens of Italy that have been here for generations some have gave their lives and work hard to make Italy what it is…

  12. You ain't foolin nobody Upscale. I know a woman when I seen one, no matter the disguise…

  13. Nike about put a clamp on this

  14. Not reselling my Beluga 1.0 or 750V2 idgaf what you offer me, unless it’s a rhd 997 911 GT3

  15. lol get a real job

  16. Only a matter of time before government sticks their nose in and stops backdoors.

  17. I got lucky and won a pair of Yeezy 350 V2 – Black Reflective worth around 2K. Also won a pair of TS1 Low 9.5 thru SNKRS app worth around 800-1000. The sneaker game just continues to grow. 6 Billion by 2025 might be a conservative estimation.

  18. AAAAAAAAAAAAAnd this is why I stopped buying sneakers. Resellers fucked up the game for EVERYONE.

  19. R.I.P. to these scumbags soon!!! lmao!!

  20. 6:25 mans sound just like Smokepurpp

  21. 11:54 "you know what time is it." is he asking or telling?

  22. I am 37 and still love sneakers. I grew up watching Jordan play and those to me are why I love my shoes. But I have never nor will I ever pay anything over retail for a shoe. I think bots, backdoor deals and anything else should be banned and I also think reselling a shoe for more than it's worth should be illegal.

  23. Video is full of clowns

  24. 500 for a chuck? GTFO dude lmaooo!!!

  25. This business is crazy man. I’ve been blessed and have seen 5 figure salaries every month.

  26. These guys have connections and backdoor access. Meanwhile the rest of us are flipping most likely counterfeit nikes from Ross with shit margins. Lol. And no, they DON'T trade like stocks. Look at any pair of shoes on stock X and the price graph always has a big pop in the beginning then a slow steady decline. I dare anyone to show me a pair of shoes that has increased in value from a year ago.

  27. Only dickheads would pay so much for a pair of shoes!

  28. Its because its a free market and prices are not manipulated its purely determined by demand. I dont think its ever going to have a bubble. But lets see

  29. I just started with 230$ and so far have made 800$ and I’m kinda stuck right now😂

  30. Soon there won't be limited releases. The whole thing about having ONE account for Foot Action…Foot Locker etc…it's only the beginning. These resellers aren't gonna be around for long time. Mark my words.

  31. Just copped a pair of Jordans for $58. All you old sneakerheads trying to advance, it's all over now, take it like a MAN !

  32. What if companies started making more pairs it will kill the market

  33. Dood it’s just shoes lmao u walk on them 🙂

  34. Well done, street wear is also another big thing

  35. I’m in the wrong profession

  36. That fat nigga doin his thing

  37. And I feel like it’s dying 😭

  38. Is that juicewrld? Look like he got a lil plump lol boy eating good!!!

  39. interesting to see how the world has become fucked up…

  40. 🧱🧱🧱🧱🧱🧱🧱🧱 C H U C K ling

  41. 0:14 my type of girl

  42. Do think these resellers pay taxes on their Salaries/profits i doubt it lol

  43. These retailers are ruining it for Joe Schmo like myself!!!
    @3:39 this is totally unacceptable!
    There is NO reason why three guys were able to go in a clean out the store.

  44. Can you make a longer version of this video please?

  45. Name of the song at 1:17?

  46. What you wasting people's time for. That dude isn't even getting the shoes from the right people lol. Dude in the warehouse knows whats up.

  47. Song at the beginning?

  48. Wash that cash😊

  49. Sorry to say this but PEOPLE NEVER LOOK AT THE FEET—I NEVER DO —JUST THE FACE MAYBE THE SHIRT—

  50. This dudes a bozo lmao

  51. It’s always these little smurfs out here selling kicks for 2 or 3 times.. Smfh while we out here just wanting 1 pair to wear!

  52. Is it too late to start? 🤔

  53. This is an advertisement for StockX in light of their recent hack which they lied about for so long and did absolutely nothing to rectify until the situation was too late.

  54. 5:13 i laughed so hard lmfao shoe at 140 rn

  55. But yet when the #Buttermovement was there all year back in 2017 giving out 100s of 1000s of dollars in shoes and merch for free yet no support from no one even Sneakercon never once paid for a hotel for us when all we did was support them yet paid for hotels for ppl who could careless about them today #BUTTERMOVEMENT is about giving back to the community bc not all kids can afford a 300 dollar shoe but with the #Buttermovement all we did was give back to those poor kids who could barely pay for a ticket to get into the event

  56. Song at 1:28 ?????

  57. There is no love for the sneakers, it's only love for the money. In other hand if someone want to pay 5x regular price why not to sell this stuff and earn. But these guys are business guys, not sneaker lovers. It's sad.

  58. That 13 years old god damm

  59. this whole deal makes one NOT want to buy any sneakers.. that selfish markup makes the retail buyer look like a FOOL!

  60. dude sounds like Bill Hader

  61. I make a million reselling my dirty underwear

  62. these resellers look sketchy AF like drug dealers on the corner…them plugs are doing it illegal so they can cash in…

  63. Shear stupidity at best.

  64. They are not sneaker fans

  65. Wow, the new, modern FT. 🤣

  66. Almost the same as the Rolex bubble. Buy for retail if you can, sell for almost double on some models.

  67. His that a girl or a guy?

  68. This is an industry that will soon die once the manufacturers realize that they are losing out on so much money. They'l find a way to either profit on that big re-sale market or price the hype shoes so ridiculously high that they wipe out the margins for the re-sellers. JUST BUY SNEAKERS BECAUSE YOU WANT TO WEAR THEM.

  69. Resellers just sucked the art and passion behind sneakers

  70. He got so many bricks

  71. Some dudes buy for $180 and sell for $220….thats like $25 profit and they think they making money……..or they buy for 400 and sell for $480.I dont get it

  72. I got multiple pairs of shoes i love too! Not 41 tho lol

  73. This doesn't seem to account for the labor hours that are put into flipping sneakers.

  74. Then you take a train in chicago…& get robbed.

  75. Haven't seen such crazy obsession for stupid sneakers in Europe. And even such crazy models for "flat foot". Impossible to jog in them. Just sit in the car. Oh yes. That is way Americans love them.

  76. the shoe version of jay cutler

  77. Lol 😂 who exactly invest in the sneakers ???

  78. Can’t wait for the day nobody cares about sneakers

  79. If there's no buyers there's no resellers…

  80. They don't call it sneaker- con for nothing. Glad i only buy 1 pair of shoes every few years.

  81. all im saying is….help the person who helped you

  82. Have a dumb ? For anyone who will give us their Opinion my Nephew wants to start learning bout being a Reseller so guess I will give him a little cash to dip his toes In the water. He loves Jordan & Lebron maybe a pair a week until he can afford to do more. Being said what would be a cpll good pair for $400 total two get a pair or two?? Answers are well appreciated!!

  83. Are Nike's made for less than $5

  84. This man really thought he was gonna sell those converses for 500 lmao

  85. 3:59 I saw crocs running

  86. why manufactures sell limited shoes? they can make more money if those are not limited. Its hard to get a pair you wanted now a days.

  87. Spend hundreds of dollars on cheap garbage made in sweat shops. LOL !!!!

  88. Uncle Sam coming after this market lol

  89. GOAT is better than STOCKX

  90. this will end badly

  91. How he know a Stash dropping

  92. 11:00 Rip Juice World

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