Sneakers. Everyone owns a pair, whether they’re for exercise, wearing around, fashion, or a combination of the three. Or you own 2,500 pairs.
 |
Source:
|
Introducing sneakerheads. The sneaker fanatics who campout for releases days in advance. The ones who spend $1,200 on a pair of sneakers they will never end up wearing. I know what you’re thinking. Why would they do this? Why buy another pair of Adidas Yeezy Boost 350’s instead of paying rent? Some do not do it for the sneakers, though. Some do it for the money.
The largest corporations, such as Nike, Adidas, and Puma to mention a few, control the entire market.
 |
Source:
|
When releasing sneakers, these corporations control the supply of the sneaker, therefore controlling the demand of it. The fewer pairs being made, the more exclusive the pair, the more people want the pair, the higher the resale price. Strategies like supply and demand decide the amount of ¨hype¨ surrounding a release. When a release is ¨hyped,¨ everyone wants them. This is an image of people lined up outside of a Foot Locker, waiting for an upcoming Air Jordan sneaker release. This happens every weekend! With more limited releases, such as the Adidas Yeezy Boost 350, pictured below, people line up for days in advance. Days in advance! They take the week off from work just to buy a new sneaker. Why?
 |
Source:
|
This is a graph I created showing the performance of three things over the last two years. One, the Adidas Yeezy Boost 350, a highly coveted Adidas sneaker made with musical artist Kanye West. Two, Amazon’s stock (AMZN,) and three, Apple’s stock (AAPL.)

The end product is incredible! If you had bought a share in Apple stock two years ago, you would be down $9. June 2015- June 2016 was a bit of a rough time for their stock. This graph was created before Apple announced 2017's Q1 earnings, which shot the stock up 6%. Amazon, on the other hand, would have earned you almost $400. This is a dollar value most people would be happy with, especially the fact that the price nearly jumped 200%! This is good, but when you look at the shoes it just blows your mind! If you had purchased a pair of Yeezy Boost 350 ‘Turtle Dove’s’ when they released in 2015, paying the retail price of $200, you would now have a sneaker worth just over $2,000! That means the price for them has grown 1000%. Selling them now, you would walk away $1,800 richer. For just a pair of shoes!
Numbers like these draw lots of people to the sneaker game, intrigued by the $1.2 billion, yes $1.2 billion, unregulated resale market. Although it is harder to get your hands on 500 pairs of sneakers compared to 500 shares of stock, the returns from sneakers can be much higher.
The idea of getting rich of sneakers is neat, but it’s also important to remember that sneakers are just footwear. There have been tragic incidents involving people being killed over their sneakers, and it is important to remember that your life is higher than your sneakers.
 |
Source:
|
To wrap things up, the sneaker resale market is a very intriguing and cool thing, with the opportunity for huge returns. Amidst all this excitement, it’s important to keep priorities straight and know what’s important.
Picture Credits:
Yeezy Boost 350:
http://static.highsnobiety.com/wp-content/uploads/2015/06/instagram-stars-with-adidas-yeezy-boost-350-0.jpg
People Lining Up for Sneakers:
https://si.wsj.net/public/resources/images/MK-BR353_JORDAN_G_20111228163651.jpg
Sneaker Collection:
http://iqbkkd2tcm3u6mnv1c41azk6.wpengine.netdna-cdn.com/files/2014/07/Sneaker-Collection-16-700x357.jpg
People Lined up for Yeezys:
http://i.dailymail.co.uk/i/pix/2016/11/24/11/3AB0E30A00000578-0-image-m-34_1479986386104.jpg
SI Cover:
http://cdn-s3.si.com/s3fs-public/2015/12/13/sports-illustrated-your-sneakers-or-your-life-inline-vault.jpg