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In May 2020, Michael Jordan's game-worn autographed Jordan 1's from 1985 sold for a whopping $560,000, setting the record for the most expensive sneaker ever sold.
The final price was 3X its estimated price of $150K.
So how did sneakers become a multi-billion dollar market?
The final price was 3X its estimated price of $150K.
So how did sneakers become a multi-billion dollar market?
First, when did the sneaker collection culture start?
The first sneaker collectors started in the 1970s as part of the growing hip-hop scene in New York City.
The sneaker of choice back then: 3-stripe classic Adidas.
The first sneaker collectors started in the 1970s as part of the growing hip-hop scene in New York City.
The sneaker of choice back then: 3-stripe classic Adidas.
The sneaker collection culture gained steam in the mid 1980s when Nike and Michael Jordan collaborated to introduce the Air Jordan 1's to the world.
Combine that with the growing hip-hop culture and sneaker collection was off to the races.
Combine that with the growing hip-hop culture and sneaker collection was off to the races.
Jordans became so prominent that some estimates say 1 in every 12 Americans had a pair of Air Jordan's by the early 90s.
So how big is the market?
The numbers also back up the claims. In a 2019 report, by Cowen Equity research, "Sneakers" were proposed as an emerging alternative asset class with an estimated global resale market worth $6 billion and forecasted to grow to $30 billion by 2030.
The numbers also back up the claims. In a 2019 report, by Cowen Equity research, "Sneakers" were proposed as an emerging alternative asset class with an estimated global resale market worth $6 billion and forecasted to grow to $30 billion by 2030.
What drives the value of a sneaker?
1. Scarcity - normal rules of supply and demand.
2. Cultural relevance - what's the history of the shoes? Is it a unique collaboration?
3. Hype - once certain people say a shoe is cool, well, it becomes cool.
1. Scarcity - normal rules of supply and demand.
2. Cultural relevance - what's the history of the shoes? Is it a unique collaboration?
3. Hype - once certain people say a shoe is cool, well, it becomes cool.
The vast majority of sneakers trade and resell for under $1,000, but the most sought after shoes often price well into the 5-figure range.
The culture of collecting signature basketball shoes has opened the door for the likes of @stockx, @goatapp & @stadiumgoods to build companies worth hundreds of millions of dollars.
And the market is growing so there is room for new players to come in and make their mark.
And the market is growing so there is room for new players to come in and make their mark.
This tweet was inspired by part of our recent Founder's Field Guide episode with @LeoreAvidar discussing collectibles (any many other things).
Check out the full episode here - https://bit.ly/2H1qFMk .
Thanks to @mehakpbatra for the help in creating this thread.
Check out the full episode here - https://bit.ly/2H1qFMk .
Thanks to @mehakpbatra for the help in creating this thread.
