As the stock market rises and falls people speaking on Bitcoin, meme stocks and potential market crashes. We can begin to look at another market and that is the Sneaker Market. The world is changing and even with the pandemic and people moving from bed to living room sneakers remain hot market items. There has been buzz as sneakers value continue to rise the sneaker market bubble will burst at any moment and sneaker enthusiast should be ready.
To analyze this concept we must first understand the culture of sneakers and how they have changed over the past decade. We must discuss sneaker origins, hype, inflation, resale value, high fashion, and cultural change.
Sneaker Origins: Looking back sneakers have a long history but they really cemented themselves in the 90's with the rise of Michael Jordan. Even today he is viewed as the one true G.O.AT Greatest Of All Time in sports. MJ's legend is seemingly larger than life having his own line under the infamous Nike retailer. There are models of his shoes which launched in the mid 80s that are being remade in different color-ways and sold at premiums. The fact of the matter is the stock of these retro Jordans has only increased over 30 years. The original Jordan 1 launched in 1985 retailing at $64.99. The price for this same show is close to $1,000 on the resale market. A replica of this shoe or remodel of the same shoe type retails for no less than $179.99. Considering this, a shoe purchased on a retail or third part website after launch . Will cost the customer a premium almost double the original retail price.
Hype: Hype is a primary reason why shoes prices rise even if we discount inflation which will naturally occur over the course of time. In a new media age Hype is now on a steroid as technology has globalized the world. Hypebeast are a major player in creating hype and forcing the market price up. HypeBeast love trends, they are influenced easily and look to buy the newest and hottest item at every opportunity. As a result companies can continue making 62 different models of a classic shoe destroying its legacy and origin story because there is a market demand that will always be met. It is destroying the quality of sneaker design and contributing to the sneaker bubble's build.
Resell Value: It is a resellers market as various models of shoes release hype-beasts rush to their computers to enter the draw or their local sneaker shops. If unsuccessful they are now at the will of sneaker resellers. Resellers come in many different shapes and forms. Some have their own websites others use social media websites such as StockX, Kixify, Grailed and Flight-club. You can reference the image below which displays how the resell market has established insane increases from the original retail price.
Cultural Change/ High Fashion: In todays society we have seen a change in culture which has resulted in a shift in the fashion world. Previously sneakers or trainers were often worn by athletes or for an athletic occasion. Also the materials being used in shoes like a leather boot or a loafer called for premium materials and craftsmanship. With such a demand for shoes we are now seeing high fashion designers like Prada, Gucci, Louis Vutton and others collaborating with sneaker companies such as Nike, Adidas and Puma. In some cases they are going even further and creating their own designer sneakers and asking for a designer price.
This has resulted in an increase in sneaker demand and a change in the market now the sneaker bubble has increased and nothing can seem to stop it. With Hypebeast, inflation, designer sneakers and other factors at some point this bubble my burst.
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