Sneaker “Resale” The market is hot! August 22, 16:38

"If you have something you want, you can get it all night long ..."
You say “greedy”, but if you can't do it all night (or if you don't want to do that), you might say, "Oh, add a little money ..." .

When you are reporting on economic news, you hear the word “supply and demand”. ("Demand and supply" is the basics of the economy.) Even if it is cheap, it cannot be sold if there is no demand (people who want it). Conversely, if there are many people who want it, the price will increase. Yes, like stock prices.

The world of “sneakers” is now overwhelmingly strong and the market is growing. Especially in the place called “Resale Market”. “Rare things” collaborated with famous designers and musicians attracts many sneaker enthusiasts called “sneaker heads”.

I would like to tell the people who are thinking about “sneakers…” about the “heat” and “change” of the resale market that I felt in the United States.
(America General Affairs Bureau reporter Shuji Noguchi)

"Resale Market"
A market that sells products sold by manufacturers and brands in principle, unused. Also called “secondary secondary market”, “secondary market”, “resale market”. In the case of a popular product, it is profitable because it sells at a price that exceeds the list price.

“Exchange” that doubts the ears and “Price tag” that doubts the eyes

The “Soho” district in the south of New York and Manhattan is a fashion city. There are many shops selling resale sneakers in this neighborhood where there are many street stores including high-end brands. One of them, “Flight Club” went to interview.

It's called “resale”, and it seems like you ’ve imagined it, but it ’s a big, spectacular display. The cash register is right on the right.

A middle-aged man who speaks Russian (?) Came in when I was about to start the interview. A sneaker box in hand. Apparently, I bought it here, but I want to exchange it. It seems that the size was different ...

"That's impossible". The clerk will say that. Exactly. Dad seems to have bought it just before, and he is confident. Gradually, exchanges become harsh.

Beyond that, another customer is buying a pair. The clerk at that time was “Final sale”. It's a popular shop and doesn't close. The meaning is “sold out”. In other words, “Refunds and exchanges refused”.

why? That is to prevent “replacement with fake”. I have a receipt, but when I settle it, that's it. If you take it outside the store, you can replace it. For those stores, “I have only the real thing” is a lifeline.

Oh, Russian dad, I'm doing something with new cash. Apparently, it seemed that the exchange was made by paying money.

The only sneakers sold here are "rare". When looking at the cash register, the amount at the time of accounting is tondemonai.

“Eh, this is $ 1600? (About 170,000 yen)”

With one pair. Recently, the demand for people in Russia and China has grown, further expanding the resale market.

Double-digit growth every year

The words low growth and low inflation do not apply to this market today.

According to research by analyst John Canan, who analyzes the sneaker industry, it has grown double digits every year. Currently, the sneaker market in North America (the “primary market” sold at a fixed price) is about 2 trillion yen.

On the other hand, “Resale” is about 200 billion yen, but it will be tripled in 2025. Nowadays there are not many such growth markets.

“Resale Buyer” with annual sales of 100 million yen at age 25

Choji also appears in the growing industry. Joe Sapia (25), who had his own store four years ago in the Soho area, is now a reseller with an annual sales of $ 1 million (over 100 million yen).

I started this business when I was 15 years old.

“When I was a high school student, I was often told by my parents.“ Let's think about my career soon. ”There are two options:“ Be ready to go on to school and make a career ”or“ Make a career ”(laughs)”

I longed for "cool" people like my older sister's friends, and started to struggle to find out what they were wearing and what they liked, and get them. Joe.

When I noticed, I surrendered what I could get to the people I wanted, and that's why I started making money. Unlike the current appearance (laughs), the opportunity was a smile.

“(Sapia) No way, I wasn't aware that I was doing a good business (laughs)”

I would like to expand my business and have 5 stores in North America and Australia if possible.

A growing market that can no longer be ignored

When you pass in front of luxury brand stores such as Louis Vuitton and Gucci, you may feel that there are many sneakers. The same was true for New York Fifth Avenue street shops. Even though it is a luxury brand, I am quite conscious of casual routes.

It can also be seen where a designer who makes collaboration sneakers with major sports brands is appointed later, as I wrote at the beginning.

Resale shop "Stadium Goods" in the same Soho area. It has been less than five years since opening, but last year surprised the industry with the investment of Louis Vuitton.

John McFeeters, the founder and still CEO, clearly explained why.

“Ten years ago, 15 years ago, there was clearly a difference between those who wanted a luxury brand like Vuitton and those who wanted sneakers. That's why Vuitton has found a new buyer by investing in us, and that's the market. "

When I was interviewing, I could see something like "another reason". That is “attractive purchasing data”.

For example, the brand A cannot directly know what its customers are buying from the brand B. With resale, it is possible. In other words, the information is like a horizontal crossing across the industry.

It's very efficient in the “everything” market, where there are customer preferences, trends, and resales.

The other day, “Stack X”, known for resale online, has revealed that 6.8 million customer data may have been leaked due to unauthorized access. If it comes out, it will be a drooling thing.

Growth market destinations

On the day a limited edition is sold, the people who got it (perhaps) all night will form a line again in the backdoor (laughs) of the resale store we have introduced here. If the distribution price is several times higher than the list price, it is a big profit.

As long as the biggest barrier of “shin cancer” is overcome, people who buy it will not stop. How will the explosively growing market change? How will the number of players increase?

I would like to see it to the extent that I'm not so addicted (bitter smile).


* We will be reporting in detail on the 5th News Shibu 5pm on September 5th.

Shuji Noguchi, U.S. General Reporter

1992 Department of Politics, Economic Department,
Incumbent at London office