A Cultural Phenomenon
Collecting sneakers has become a cultural phenomenon that transcends the boundaries of fashion and sports. What was once a niche interest has become a global obsession, with collectors and enthusiasts fueling a multi-billion dollar resale market. The rise of sneaker culture can be attributed to a combination of factors.
Celebrities like Michael Jordan, Kanye West, and Virgil Abloh have had a huge influence on the trend since its inception. Another factor is the rise of limited editions and collaborations; brands like Nike, Adidas, and Reebok have partnered with luxury fashion houses and streetwear labels. Even artists have begun to create exclusive designs that are released in limited quantities. From the avant-garde designs of Virgil Abloh’s Off-White collaborations to the artistic takes on classic styles from brands like Converse and Reebok, sneakers have become a canvas for creative expression.
Investing in Sneakers
In recent years, the field of collecting and reselling sneakers has grown into a staggering $10 billion-a-year industry. Amazingly, sneakers have fetched prices as high as $1.47 million at auction, – a prime example being a pair of Jordan 1s worn on the court by the iconic Michael Jordan himself. At the same time, on online resale platforms, select pairs that originally sold for a modest $200 are now changing hands for tens of thousands of dollars. Experts agree that this market is poised for continued expansion in the coming years.
A pair of sneakers typically ranges in price from $50 to $500, depending on factors such as brand, collaboration, and the like. While some pairs maintain their original value, others take on a remarkable trajectory of appreciation, reaching amazing price points. Let’s take the Nike SB Dunk Low Paris as an example. Originally released in 2002 with a retail price of $60, the current availability of this sneaker is limited, resulting in exorbitant resale prices. For example, on platforms like StockX, it is listed at a staggering $157,700. To further illustrate, a total of 15 pairs of the Nike SB Dunk Low Paris have been successfully traded on StockX, with prices ranging from $9,015 to $62,000.
Your Wealth, Our Priority: Altoo's Consolidation Power, Secure Document Management, and Seamless Stakeholder Sharing for High Net Worth Individuals. Preview Platform.
What Influences Sneaker Prices
If a sneaker generates ongoing discussion and anticipation in the months leading up to its release, it strongly suggests that its price will rise. An illustrative case from 2020 is the Nike SB Dunk Low Ben & Jerry’s Chunky Dunky. This sneaker gained immense traction on social media right around its launch. The outcome? Initially priced at $100, the ‘Chunky Dunks’ swiftly found themselves being resold for an astonishing $1,700.
The second influential factor is an elementary but profound one: the allure of the unattainable. This phenomenon holds true for sneakers just as much as it does for anything else. The Adidas Yeezy collection exemplifies this concept splendidly. Kanye West’s inaugural sneaker crafted in partnership with Adidas, the Yeezy Boost 750 ‘Light Brown’, debuted in December 2013. A mere 9,000 pairs were manufactured, and they were snapped up within a mere 10 minutes. Originally retailing at $350, these sneakers can now be procured online for approximately $2,000.
Understanding the factors that drive the value of collectible sneakers, conducting thorough research, and adopting a strategic approach help collectors successfully navigate the rare sneaker market. As sneaker culture continues to evolve, collectors can look forward to exciting opportunities and the ability to add valuable and cherished pieces to their collections.
