Are sneakers the new stocks? Here is all you need to know and the dos and don'ts of this new asset class
In these times of market volatility, when everyone’s talking about monetary tightening, inflation, asset bubbles, crypto crashes etc., there is one asset class that seems crash proof -- sneakers!
es, sneakers are the latest asset class in town. A commodity which sees an insane demand for pairs sneakily “dropped” by companies like Nike and Adidas and the extremely limited supply makes them really sought after.
How The Hype Business Works
The game is a simple one. Big brands, as mentioned, launch sneakers in limited numbers and a bunch of enthusiasts buy them as soon as its the market. Then these limited sneakers are sold at a premium via social media, or reseller platforms.
A look at how the sneaker culture has caught on can be seen in the table above. Google trends indicated a 400 percent jump in India's search for the term "sneakers" and a whopping 800 percent jump in the search for "Air Jordans". On Instagram the terms "sneakerhead" and "sneakers have 1.5-2.5 crore posts about them. Yeezys, a fashion collaboration between Adidas and Kanye West, has seen 1.7 core posts. And yes, if you aer looking for a date, data shows that a being a sneakerhead can be a great connect to your ilk.
The Michael Jordan impact
When the world locked down in March 2020 due to the COVID-19 pandemic and we were consuming content online as our main source of entertainment, Netflix released “The Last Dance".
Apart from basketball legend Michael Jordan's exploits on the court, the series somehow reinvigorated the sneaker culture which had started way back in 1985 when Nike launched Air Jordan 1.
Thereafter, eBay in the 90s further propelled sneaker re-sales. In 2014 itself, eBay’s sneaker sales in touched $388 million.
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