We all know at least one sneakerhead. Those people who obsess over shoes and collect hundreds and hundreds of sneakers in their closet. Even spending hundreds or sometimes even thousands of dollars on these sneakers in order to rock the newest Yeezys or the retro Jordans. There is a whole culture and economy behind sneakerheads and their addictions of sneakers. Sneakerheads line up for days to get latest pair of Jordans or Yeezys to get them at retail stores for retail price. But what happens when a sneakerhead isn’t able to cop a pair of the latest release? This is where the resale market for sneakers comes to play.
The sneaker resale market is a simple supply and demand issue. There aren’t enough pairs for everyone to have. There are a limited number made every release and with such a high demand from sneakerheads for certain pairs, it makes some sneakers rarer than others. This drives prices up for sneakers and you can clearly see that on resale markets with shoes going for 500+% their retail price sometimes Yes, a shoe that was $350 retail is now being sold for $1800+!
Sneakerheads go on the resale market to look for the shoes they want but couldn’t snag. Where do sneakerheads find these resale markets though? A lot of the resale markets live online now. Ebay and Craigslist are online auctions platforms where sneakers are put up for sale and then are sold to the highest bidder. Social media also plays a big role in resale markets. There are Facebook groups made where users can join to see what shoes are being sold by others in the community and they can connect with sellers for purchasing interests. Instagram is a similar social media platform with hashtags, such as #JordansForSale, and accounts people can follow to see shoes that are being resold and then directly message sellers. Digital and social media commerce markets like these have huge influence and collective impact in the sneakerhead community. In fact, it has been calculated that this resale market is worth over $1 billion. With these online markets though and so many pairs of sneakers out there on the market being bought and sold, it is hard for buyers to gauge what the fair price for the shoe they are buying for the quality of the shoe and hard for sellers to set price, fearing that it would be too high or too low. Recently, there has been a solution to this ambiguity in the sneakerhead community called Stock X.
Stock X is the world’s first sneaker stock market. The website collects a ton of data everyday about this resale market and analyzes it for sneakerheads and sneaker “investors”. With so much data, there is now a developed a price guide that represents a real time data-driven view of the sneaker market. This platform provides real-time analytics on thousands of sneakers out on the resale market. Sneakerheads can check prices to determine if what they are buying is fair or sell at a price that the market is willing to pay for. This is a data-driven marketplace online that sneakerheads can now use with confidence.
Along with this, what I think is the coolest feature of this digital platform is that sneakerheads can now track the value of their collection over time, compare it to other collections out there, and have access to the same analytics you might for a stock. Essentially, a sneakerhead collection can now be equivalent to a stock portfolio. A sneakerhead builds his collection and can now identify his whole collection on Stock X. They can see it’s worth and on an asset level, they can track and see their gain-loss by shoe and for their entire sneaker portfolio. Check out this insane portfolio someone has…558 sneakers, valued at $357,000…INSANE!
With both the data, marketplace, and asset tracking, Stock X is truly unlike any other ecommerce or auction based platform out there. In real time, buyers and sellers can see what an sneaker is worth in an open, unbiased, authentic platform for the sneaker resale market. In a way, Stock X is changing how the sneaker resale market was previously run on Ebay, Craigslist, and Facebook. Stock X basically made a stock market for commerce. Imagine what Stock X could do for other resale markets like toys, clothes, cars, etc. With so much data being aggregated, it shows the huge power of what data can do for us and I can image it being so useful to track the value of all the stuff you own. It will be interesting to see how this model affects the ecommerce business, how it will affect buyers and sellers, and see if this will be expanded beyond sneakers and sneakerheads. Will there actually be more platforms based on a stock market of things? All this due to a pair of sneakers.