Stock X, the Game Changer in Sneaker Market
October 1 , 2021
When Nike announced the upcoming release of its highly anticipated limited sneaker in collaboration with Japanese high fashion label Sacai, I first typed hashtag “NikeSacai” on Instagram to gather all the list of retailers that were offering online raffles.
Based on my newly gathered knowledge, I succeed in applying for 12 raffles. My hopes all vanished as I received 12 e-mails titled with “Sorry”, informing my unsuccessful attempts for the draws. Now with anger and frustration, I log into Stock X, a popular resell platform for sneakers, to purchase the same model with now a +40% increase from the original price.
According to Cowen, the U.S sneaker market is now valued at $21.2 billion, and the overall global sneaker market is nearly $100 billion. The U.S resale market has an estimated value $2 billion, and the global sneaker resale market is worth around $6 billion. Sneakerheads, who are classified as die-hard, passionate sneaker fanatic who would do anything to get a hold of pair they want, are the main players behind this universe.
Especially for the millennials and generation Z, sneakers have become status symbols. The process of acquiring the limited sneakers, indeed has become a competitive sports game for the sneakerheads who value originality and scarcity.
Nike, with over 30 million web searches worldwide, is the world’s favorite sneaker supplier. In second place is Jordan brand with 20.5 million searches and followed by adidas with 20.4 million. These three major players in the scene consistently “Drop” limited pair of shoes in small batches to control the supply while increasing the desirability of each model.
As the popular sneakers are always produced in limited quantities, the demand always goes beyond supply in sneaker market. Consequently, sneakerheads move into the secondary or resale market to acquire the items that they could not obtain in the primary markets.
Thanks to internet and social media, the resale market for sneakers has been revolutionized.
20 years ago, when we only had blogs and internet forums, sneakerheads used eBay as the main source to buy and sell sneakers. In 2010, social media especially with Instagram, was a big milestone that accelerated reselling of sneakers. Not only has Instagram helped create unique niches within sneakers, but it has given sneakers another way to sell shoes.
Then in 2016, Josh Luber founded Stock X and changed the game completely. Stock X is an online marketplace and clothing reseller, primarily of sneakers. The platform connects buyers & sellers and ensures that all transactions are secure and safe. Stock X authenticates all the products before they are delivered, thus the buyers never have to worry about fake products.
Most importantly, StockX is more than a commercial platform; it is a DATA platform, which provides both buyers and sellers with relevant data including current market value, number of items sold. With this information, sneakerheads now know what the right price is to sell or buy in the market.
With the rise of Stock X, sneakers are not just fashion items any more, but they are now considered as investments and assets especially for the millennials and generation Z.
