Night View 09.09.2021

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Alternative Investment:

Sneakers Shoes!

The sneakers are one of the most common shoes in the world. At the beginnings sneakers are sport shoes but, in the last decade, the casual sportwear marketing turn into a luxury shoes image as Luxury Brands design their own collection or sell limited series in collaboration with celebrities for an event. Consequently, collectors all around the worlds are seeking their favorite shoes and more and more investors are interesting in this market.

The craze for sneakers is so great that sneakers models are listed like a financial asset on a specialized platform StockX.

The best example is the famous Nike Air Jordan with a starting price around $200 but the series realized in collaboration with the US rapper Travis Scott can be exchanged at $1000 – $1500!

One of the best advantages of the Sneakers as investment support compare to Wines or Art is that some models are affordable (depending on the type and the models) for many people all around the world. The US and Europe are the main market but Asia is becoming the largest market as China, India, Indonesia and Malaysia economies rise.

The main criterion to gauge the potential of a sneakers is the “scarcity” of the models and the brands. In this context, Nike is the Leader of the market as Jordan and Converse series are very asked. Adidas is also a big actor of the market especial with Stan Smith series or YeezyThe initial price range of Nike or Adidas are around $100 to $400 but prices of some luxury brands like Louis Vuitton, Dior or Gucci are greater.

The Collaboration is also an important criterion as models signed by most popular celebrities or designer are generally rare and exclusive to a country or to celebrate an event. The Collaborations is also the main factor of speculative behaviors. The initial Quantity available is then the main drivers of price increase as limited series can be only sold under strict conditions like be a regular customer of the Brands or sometimes on lottery. In this case, the prices on secondary market can explode.

However, the counterfeiting is the main risk as more and more transaction is realized on internet. Some platforms propose a second sneakers markets with no guarantee on the quality of the products.

Some Figures :

Louis Vuitton -Kanye West (2010) 25 000 €

Adidas Yeeze Kanye West $ 1.8 Million

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