The $2bn sneaker resale market: How entrepreneurs are cashing in | FT Features
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- čas přidán 21. 10. 2019
- The FT's Don Newkirk Jr meets the key players and influencers in the obsessive world of sneaker resale, where trainers like those from Nike Air Jordan and Adidas Yeezy can make a fortune for entrepreneurs that treat shoes like stocks on platforms including StockX. Read more on the sneaker business with one free story: www.ft.com/content/2155aa3e-d.... Subscribe to the FT with a £1 trial: subs.ft.com/spa3_trial?segmen....
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sneakerwealth
Are they a website that I can go to look and buy all the Air Jordan 12's at ?.....I'm lost at this point !
I been into sneakers a long time and while resale is a part of the market, there is just something so epic about getting a pair on a good sale or finding an old gem off eBay that I enjoy the most.
Hes Kicks yes I loved those days getting kicks for 40 dollars. Like air max infrared 90, air tailwinds and air tech challenge
A1
Lol business people do these stuff too but in real estate, if you wanna feel more exciting then i suggest you invest real estate. Buy old broken house, fix and flip it
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.
it just somehing to do...
What's sad is that its not about the love for sneakers anymore but how much you can sell it for. These guys are not about the culture but only how much money they can make.
Dennis Dominguez true but nike and adidas etcs are allowing this by not launching in decent numbers as stores operating crooked lotteries
Dennis Dominguez can’t hate the player & the game. This is capitalism at its finest.
But the people buying them are
Money is all that matters
You have to get the money where and when you can. Stop waiting make things happen.
Dude: these gonna sell $400-600
Converse hype: lemme end this mans whole career
@Andy Garcia yes
wewwwwwwwwwwwwwwwwwwwwwwwwwwwww we w weway wewwwwwww were wew ewwwww ewwwww way we all see y’all e well wewwwwwI reewwwas ewas eeeeewas w
What did they sell for?
Esoteric Fitness like 100-150 if I remember, lol
Jay Masaitis between the period they were selling at complexcon and general retailers they sold for 300 easy
Gone are the days when you could wake up whenever you wanted to on release day & cop something stress free
@John smith It's also not fun, homie. Some things are more important than money. And that's coming from someone who sells sneakers but I also understand that the soul of something is more important.
Its the same circle of people keeping it going, with the suburb boys pushing the market up.
I know. I was lucky to get the Bred 11's while I was at work. The footlocker site was acting stupid.
Fatty's ruined it, kids wasting their part time money on them support them...
fr im new to the sneaker culture but i really wanted the jordan 1 mochas and they were sold out in seconds and no way im paying resell.
$400-$500 for the chinatown converse LMFAOOOOOOOOOOOOOOO
FORCE DonK he bought a lot of bricks
FORCE DonK between ComplexCon and the general release they were selling for $300, but yeah it’s not that way now lol
"We are the ones who create the market." - resellers with high school education
Those sneakers are sitting at my local footlocker xD
🤣😂🤣
mans bought a brick
Diplexsword47 during complexcon they were selling for 400 plus... don’t worry about his profits
Uv chucks??
I felt that “40 to my name” dam
It kinda sucks that the Chinatown Market pop-up was designed to provide a really cool retail experience with the lab coats and overall set up just to have the first dude to walk in with no intention of wearing the shoes himself cop to flip to someone else who might've really wanted them. It's sad that that's how it is these days.
Alex Mathew Mendoza the thing is as well that this ain't gonna last. In the next 5- 10 years the resale market is going to implode guaranteed
@@Tazza81 yea because people just gonna stop buying stuff.
@@Tazza81 the companies are gonna make them cost so much so there is no resell profit.
yeap, money come lst, love second
@@cardalien But companies make more money with all these Resellers out there because they can send out more stock, and thats exactly what theyve been doing. So if they increase their Product Prices to the point where thousands of resellers stop selling & Buying. They will just have to decrease them again. so in about 5 years time the re sale shoe market gonna be thriving even more !
Man have things really changed over the years
"there is this thing called back door now"... little homie thats existed since the inception of commerce LMAO
Smh, but not in this industry since recently. seriously, common sense shoulda told u what he ment.
and gay sex.
This market will thrive as long as these youngsters keep thinking shoes are a better investment than real estate. Get it while you can.
kpcsr415 yo deadass.
imagine doing both bro
Real estate takes way more work than buying sneakers
You do know that the very idea of money is based on people believing that a piece of paper has value right if people think something has value and they want it and is willing to pay for it
Just stop.
The resellers in this cringe af LOL
You know they have no real friendships
cracc is one of the biggest in the game
Yeah their cringe bet ur very cool
Alex Huang if you need a shoe vendor wholesale , text me on Instagram @thebkbrand. Mine is legit. Even if you just wanna ask questions, I’ll answer It’s going for $10.
lol they still got money and you're watching them
I remember being a small kid (before the instant digital age) and shopping for shoes at Foot Locker/Local Shoes stores and thinking there’s got to be more shoes than this for the public. You see everybody wearing these same shoes. Then I got introduced to the AJ 1 by my cousin and I instantly fell in love with the “underground shoe market.”
It’s always these little smurfs out here selling kicks for 2 or 3 times.. Smfh while we out here just wanting 1 pair to wear!
these resellers look sketchy AF like drug dealers on the corner...them plugs are doing it illegal so they can cash in...
someone didnt cop on release day and had to pay resell, tough luck lmao. the demand is here, so were gna keep reselling
Someone sounds salty.
First come. First serve. #DealWithIt
Shout out Bobbito Garcia for starting this whole sneaker resale moment.....He had a store in the east village back in the day that was the first to sell the throwback kicks....yes a DJ started this!
BG Getting dunks for 35$ he a real one 💯
He was saying China town market converse will go up to 600
But really at 150 on StockX 😂
He would have to end until the others sell so he can get his $600
nope... it just how it is.. some of themwill go for 600 a first few one... and it brink....after... the shoe made most money out of this....
Maybe after 20 years lol
chris wizo bro during complexcon they were going for 400 plus... you just a dumbass
He wasn’t lying tho there’s always those guys that get desperate that have the money
6:57 his voice surprised me ngl
kinda like garry vee's lol
The guy actually thinks without him the shoes wouldn't be able to reach the customers? Lol
As long as there are suckas in this world Hustlas will get money.
fried IT a sucka is born every second
Ok boomer.
Fax
TK Kirkland New gen making more money than any other generation lolll
All facts!
This is a really interesting yet lucrative niche in fashion. Men are often overlooked by huge fashion brands.
It's mad considering they usually make the most
Men's fashion has been picking up a lot recently. Mainly due to brands that have what you call hype and high resell value, supreme, palace and limited Nike's are the main culprit.
Haya Glamazon Because most men value function over form.
Imagine if people lined up like this to vote ....
Guess what. They did. And trump got reemed
@@16soccerball no in fact less than 15% of votes that went to biden were in-person votes. so people didn’t line up to go vote like this. go somewhere else pussy
I mean it could be possible, if voting oppression is eliminated
imagine buying a $500 dollar shoe when u can get the same quality for $50
But which one has more value
Good luck copping a 50$ shoe that has only 50 pairs produced globally.
I dont buy "re-sold" if i like it and I can get it when it drops I get it and i rock it if i cant then guess I'm waiting for the re-stock
Backdooring = cheating
It's basically the equivalent of insider trading. Having special access the general public doesn't have. It must be nice to be one of these guys.
@@velious2121 it's also illegal
yeah... backdoor just mean you will not get a shoe...
Until someone does something about it, it's gonna keep happening.
@@NomadicEmcee nobody really gonna be able to do anything about it. Employees from retailers will always take extra money cause they get paid well from resellers for backdooring pairs. If an employee gets paid 50 bucks a pair and backdoors 10 pairs they just made themselves 500 bucks. The money it too good.
Props to the man that went from $40 to his name to millions 💯
And resale customers are poor people trying to look rich.
Or they just like the shoes. Just because something is valued at 600$ in the after-market doesn't mean people are buying it because it's 600$, that's retarded.
Sounds like youre someone that cant afford either way😂. Quit your bitching let people spend their money
No you so you make more than stockx ceo but still comment ish like this on youtube💀
No you, i work a lot too but ik people that most likely make more than you reselling shoes/clothes. Ik some that make more than me. No need to be salty its a hustle and i can respect it to a certain level. Some are assholes but most are just tryna make a buck like the rest of us
@@jiggymario8161 You call it retarded, but that's literally what people do. That's how luxury brands make their money. The difference in quality for most consumer products is very small. Everything is so inflated in American that no one even knows the true value of anything. The average American makes less than$50k a year. Put all that into perspective
5:41 this man really trying to expose this 13 year old to the IRS? 😂
Boy was scared to tell his numbers
Forget lemonade stands
who car that kid will get rob soon or later....
You can't tax a 13 year old though...
NomadicEmcee you most definitely can 😂 parent files on minor's behalf
Weirdos took over the shoe game
Ruined
Weirdos ruined the shoe game
Da hell does that mean? Every industry has people that change the game! Obviously none of you get this, it’s what been done since the beginning of time with all things.
Music and, all
VinnyLogz meaning people by shoes now a days just to profit , it should be because of meaning of the shoes not the hype ,
Now just imagine what it could be like if we all just payed retail and got them from the actual company that makes them.
7:07 there’s no shot he can authenticate travs that quickly
That’s why I don’t buy from stockx.
I’m fairly new to the community, but I love it. Some people it’s hype, but mine is being able to financially be able to cop pairs that have an emotional tie to my childhood and general love for sneakers, primarily Jordan’s. My mom couldn’t afford Jordan’s in the early 90’s and around that time period, $100 for a sneaker was a lot of money. So being able to get some of those pairs that I coveted and rock them is something special. When you were a kid in that time period, there was no such thing as shoes being retro’d or a market for resale. For all you knew, when the shoe sold and was gone, it was gone forever. Plus, with Jordan still playing, it was always a new model every year. Little did I know, many years later, I’d be able to buy that Jordan 8 that I loved in 93 - 20ish years later.
same one year my mom was finally able to get me pair, the price had lowered. They were the Jordan 14s blue suede to this day they're my favorite jordans
I started a $20 million dollar business with $40 dollars said no one ever
Maximo Asante 😂
@@maxasante5206 bro I can't even argue against that lol
👍👌spot on wit that analysis
Esoteric Fitness init
@@maxasante5206 true asf
Uncle Sam coming after this market lol
BINGO!
Love hearing jaysse’s come up story, you can see it in his face when he said “he only had $40 in his account”
Mans thought he landed on sum grails but bought straight brickss 🤣 🧱
Not that big of a sneaker head but I’m beginning to understand this shit
It’s the same way with media not understanding why esports makes so much money
They don’t want to understand they just want to ridicule and patronize. I’m here to listen, understand, and respect the game
Futon Flex One cannot respect stupidity
Arno Pisspot the market is always gonna change doesn’t matter what’s selling as long as it’s actually selling right?
If you can make 50k in a week then you must be doin something right 0:23
Arno Pisspot if your missing out on 50k in a week who’s the stupid one? ;)
It like any reseller game. The sneaker reselling games is high in profit because of the value of the product doesn't lose its value. There are always someone willing to overpay for these sneakers.
@@tonykeo83I wouldn't be so sure. A sneaker as an investment is idiotic. You can look at baseball card,and those dolls. Eventually history will repeat it self. This is a free country and do what you want
Wasn't there a period where tulips were considered hot commodities...
Fantastic work, for people who make art in Sneakers it is a kind of feeling that many do not understand! Thank you for contributing to the sneakers community, I will customize them on the walls🔥🔥🔥
As much as I want to admire the hustles, this is just basically glorifying scalpers.
Eddard Starch FF don’t be hating
@@alfredoalcantar8691 Whats wrong with scalping luxury item?
Basically yea
That $40 guy is pure hope
Ok but do you really need 41 pairs of the same shoe? 😂
Jackle Smithda3rd if you think about it you can sell them all for a low price and still make an insane profit maybe 5k dollars
@@memeboij5656 but it sounded like he meant for personal use.
11:18 Straight facts bro. I'm older but I see how everything going online made it easier for kids to get on game nowadays
This business is crazy man. I’ve been blessed and have seen 5 figure salaries every month.
Dang how much capital you have to make that happen? I only got 10k
Fancy giving me a job lol
The counterfeit business is only booming cuz the re-sellers prices keep booming.
KpopNiDontStop right They are damn near worst Than counterfeiters counterfeiters aren’t going to bust my balls
True
Resellers just sucked the art and passion behind sneakers
that's black
For reals every shoe is a brick if there’s no resale according to resellers
My mom be saying, stop concentrating so much in sneakers. Me in my head thinking but it’s profitable.
This vid is motivating in many aspects
Its like buying a car you never drive. You have all this money and buy a rare and exotic car. You then put it in a garage and cover it up and never drive it. All in the hopes that it goes up in value and you can sell it for a profit. My guess is right now there are more brand new Air Jordans sitting in boxes on a shelf in someone's closet, than there are out on the street on people's feet.
Artstar2 but if a shoe flops then you lose $200-300 not $40000
They forgot to mention the 30 billion dollar industry for fakes
No doubt, there are huge factories in Asia that just produce fake merchandise... J's, AM, Ultra boost, LV, etc.
Resell market and fake market are often the same thing. Every dude in this video I guarantee has sold a fake shoe as real.
They did mention it. 6:44
6:52 it was stated brodie
Idkwtfux if you need a shoe vendor wholesale , text me on Instagram @thebkbrand. Mine is legit. Even if you just wanna ask questions, I’ll answer It’s going for $10.
Some experts think the sneaker market can reach $6 billion by 2025
Covid-19: Not anymore!!
In other words the fakes though 🤣
As someone who resells shoes, clothes and other stuff... I’m making more now than before corona
@@zachstinehagen9736 Yes online sales are booming..talking about Retail brick & mortar.
Andrew Freeman yeah it really depends on a lot of factors. For context I resell personally and do online sales for a donation based resale store. Certain businesses/niches (especially resale) have been fine during this bc a lot of them already had established online sales presence so they just transitioned all their efforts into it. I think a lot of the struggle rn for people with stores is that they never diversified into e-commerce in the first place (which, in all honesty, is the same as saying “no I’d rather not grow my store, reach the international level and make more money”). So those places are definitely struggling/dying off. But the market for new and nearly new stuff at a low cost is crazy. The store that I work for reopens in a few days and the support is immense. I think that the resale market (especially among used items) is looking at a time of exponential growth in the next year especially for physical locations (considering the effect of not being able to go out and shop for 2-3 months). A lot more people are going to be buying resale now which is cool bc so many people will find out about the money you can save/make, unique stuff to find, environmental aspect etc. although it’s sad that people will be pushed into it (instead of discovering) bc of the financial strain this has brought I personally think the resale market is going to grow even faster now. A lot of Stores that sell retail priced items (in the clothing/shoe niche) are a different boat altogether and for many this is just the final nail in the coffin for them. imo the sneaker resale market is more on track to hit $6B by 2025 than ever. the resale market isn’t only hype shoes going for $300+. A lot of shoes I sell are gr’s and niche brands that ‘hypebeasts’ don’t know about and wouldn’t touch. the driving force of resale is being able to pickup new/slightly used kicks for 30-70% off retail. So in a time like this it’s the perfect business. People that pay $500 for a shoe that originally costs $200 are a smaller percentage of the resale market for sure so that side may suffer but the average resale sneaker consumer is usually looking to cop a $200 shoe for $100. the great thing about shoes is that everyone needs them, it’s weird to think about but they are an essential product. “No shirt, no shoes, no service!” So, at this point in modern civilizations the shoe market can’t die (unless things get really really bad) and the resale market for shoes will always be there, especially in more difficult financial times. Again, this is just my niche, experience, observation and opinion. I think it’s really interesting to think about the technical side of what grows/dies during financial difficult times and personally I think the resale market for sneakers/shoes grows during financial uncertainty! Lastly, the biggest problem for resale during this time is sourcing product and that can really kill business especially for personal sellers. If you run out of inventory and can’t get more that’s no bueno. Luckily many resale stores have more inventory in storage than on the floor. But many people selling personally source based on sales so they don’t really have inventory that’s not already for sale. Which, isn’t smart. Thankfully, I paid attention to the stores and had more personal inventory saved up than for sale (the original purpose was for popups, and seasonal sales but there was the part of me that saved just in case) I also identified that stores were gonna close so I went out and bought like crazy before they did. Then I thought “ok what if this last for 6m-1y” and planned my usage of inventory accordingly. Ultimately, I had been prepping and thinking about the future before it hit the fan and bc of that I was ok. I think that’s just smart business. If you plan for everything to be perfect and workout just the way you want you’re bound to be surprised sooner or later. My point with the inventory stuff is that smart business will always be ok. Unprepared and naive business will usually suffer. I think many are suffering bc they failed to prepare and branch their business out beyond just a storefront. And I think even more business’/owners are suffering bc they made $20k profit a month and lived a $20k a month lifestyle instead of reinvesting $10, keeping $10 and living a $4 lifestyle... I just went off on a crazy tangent, so sorry for that, but there’s just so many factors that it’s hard to not keep going 😅
@@zachstinehagen9736 coming from indonesia as a reseller, i have seen my sneaker trading going up lately
Was a serious sneakerhead 15 or so years ago. Used to cop sneakers from niketalk, solecollector, etc. I wish there was something like stockx and a lot of the other buy/sell platforms back then.
I'm surprised these guys haven't suggested backing up the dollar with sneakers instead of gold.
Damn Cracc You And ya team is the truth Team work make the dream work
I can't believe I just found this video now? I watch complex and sneaker shopping all the time! I don't get CZcams suggestions sometimes. I know they try to get you to watch certain videos and it's an algorithm but I also think that control is powerful enough
i been thinkinh of opening a sneaker and cap store. this motivates me more to proceed with my plan.
Resellers and bot boys ruined the sneaker game 😪 fortunately I don’t care about DS/VNDS so I can get the shoes I want at good prices if there in good condition cause I actually rock my sneakers.
same i'm just trying to rock the sneaks, they got them collecting dust in a warehouse
Sean Just Sean what’s the next thing to invest in
anthony jones electric vehicles
I can wait for when they start doing restock on every shoe.. so the resale game can tank
that will literally never happen. idiot
I hope they do I just wanna get a sneaker I like and enjoy looking at it I hate paying so much for them but I want them for my collection.
Island Boy6IXX It’s not going to happen so your ‘hopes’ are worthless
Original well if they restocked sneakers then yeah but I guess not.
@@Unruly6ixx if that's the case, Nike won't be a billionaire company anymore. AND that's when the shoe game truly died. no more hype.
very interesting
mind blowing
eye opening
a parallel way to trade
outside of the traditional or online
thank you for value ! 💎
these are money making guys
this was fire
So they get sneakers before the average Joe can, and then jack the price up a ton because you cannot get them in stores, lol. Just common day criminals, so glad I could care less about what shoes I wear. lol
Common day criminals? Its called a market. No different than housing, car, watch, or any other market for that matter. Educate yourself
KLIKKZZZ ^
I should say common day opportunists and traders they work all CASH the only one missing the slice is the revenue office no sales tax is paid .......
50 year old playing Fortnite 🤡🤡🤡
@NateSoloTV You will never change my mind, these resellers have access average people do not, Im willing to bet 90% of new product gets bought up and resold for stupid amounts. Im ok with capitalism, Im not ok with a monopoly, and thats what these people who have the cash do. I will NEVER get a cool pair of shoes, never had a cool pair, at 54 I still wouldn't mind a pair. I am a realist and realize it ain't gonna happen.
The more I watch this the more I get heated knowing not only are resellers milking this but also sneaker makers and retailers. Retailers for letting Backdoor sales, retailers for making low production runs, marketing for building hype for a low or very unattainable sneaker forcing people to run to get an opportunity to buy.
@ 56 years old i still cop sneakers for the love of it
✌🏽✌🏽
I had to watch this in a business lesson the other day I tell people I resell they don’t understand but when they watched they watched this there reaction was liek woah
First off! 41 pairs of the same sneakers is now reaching ode! Then on top of that homie talking bout Converse for $500 to $600.. that’s just a damn shame! No wonder why I can hit on any of these sneaker apps! People out here using bots to get the advantage out the game and suck the life out.. I’ve been doing this sneaker thing for years! It’s sad to see the art of creativity turn into money!!
Crackkkkkkkkkk kills !!!!!!!!! Shoutout to the plug !!!!!
That’s lit🔥
I had to check out this video to see why I could not buy a shoe I seen coming out that I had in 1991. I thought it was going to be easy and find out about resellers, still don’t have the shoe and will not pay above retail.
I absolutely LOVE the times we are living in.
6:25 tell me this guy doesn’t sound exactly like smokepurpp
Yes
Good video!!
This mad said 700 for chucks 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
Bruh.. when I was a kid chucks were $25-40 bucks 😂😂
The hype
They sold for $600
well girl also buy shoe if theirs friend know how rare the shoe are...
@@tacotom3492 exactly
I've made thousands of dollars already and I just started in may, only getting bigger every month as well. This can launch you so far in life
Question, how much did u start with?
Angolz Tapz I started last month and just about 300 in cash and 300 from credit and made 2k
Angolz Tapz then just use that and continue flipping and don’t touch it
Zaixi what’d you start with? do you have a bot ?
Imagine selling on StockX
I want a slice of that pie too. Not only because of the money but I love the sneaker culture
I have a couple questions? How does one get into this business? Like where do you find the network, and the release dates and the stores that have these shoes that drop? I have starting capital of $5K, and want to get into the business.
3:59 I saw crocs running
Enrique yo I played it like 10 times and dude laughed was annoying lmao
I hate everything about these resellers like who in their right mind pays 1000$ for 200$ sneakers smh
Don't blame the player, blame the game
Basic Macroeconomic Principles, Demand and Supply
you sound a lil upset that your not the one making those kinds of flips daily. as long as someone out there is willing to pay that much, you better believe someone is going to be there selling them. demand and supply 101
@@watergunz718 !!
Ummm people do
Yeah this is wild !! My boii upscale in the building yeah he’s a different beast 🐐🐐⚡️⚡️⚡️
I’m 15 and I love sneakers so much I really want to get into this business for some extra money that way I can grow my personal collection. I recently applied for my first job so I can start getting shoes to resale wish me luck
NOT ANYMORE BIG UPS TO NIKE FOR SHUTTING DOWN THE BACK DOORS!
O no reselling is oveeer... Gtfo
Let’s see how unauthorized pairs are gonna affect this
Very interesting. The younger crowd goes at it these days. I always enjoyed watching other people get their hustle on. I don’t know how they do it But I couldn’t hang out in a mall like that, if I go to a mall I have to be in and out superquick.
The shoe game has changed A LOT!
Jordan started this industry
Converse UV 110 dollars today 🤣
the market's topped
Those Converse are straight bricks 🧱
these resellers look sketchy AF like drug dealers on the corner...them plugs are doing it illegal so they can cash in...
This seems like a tulip bubble
Dope 🔥
Weirdly, on some levels I think of the buyer/seller knowledge to be like that of an art dealer, looking for the real and exposing the counterfeits. Can't say I understand the sneaker head market draw, but I find the culture fascinating. Sure it's a business for some, but I mainly see a passion and that's kind of interesting to me.
5:13 i laughed so hard lmfao shoe at 140 rn
2:45
“ I’m the first guy here”
*20 people walking by on the reflection*
What’s nice about this market ,is that you can have possession of limited shoes and sell it to rappers who will pay 20 gs for them. Reminds me of the car business,I might give this a shot.
So dope
This is my dream... I just found my purpose
“Kids are running like they owe 50 Cent money!”
I resell sneakers in the uk and on the first week I made £450, I highly recommend this. Its a great side hustle
Side hustle? Damn luck u
@ 12 : 24, manOman, those 'Wahlburgers 4' are 🔥🔥🔥 love love the colorway on 'em 😜
* manOman, their up for almost 15K., WTF!?.. estan lokos, Lol