How sneaker fans are cashing in on the $2bn resale market

How sneaker fans are cashing in on the $2bn resale market


The reselling aspect of sneaker
culture has changed everything I think now is the biggest
time for sneakers in maybe it’s ever been. There’s people taking money. And rather than investing in a
traditional asset classic stock or bond, they’re
buying sneakers. And they’re investing
in that sneaker. And they’re selling it
on an exchange later. There is a lot of money
to be made in this game. You could make 50 grand
in a weekend, man. I’ve seen people do it. We estimate that there’s over
$2bn in gross market value overall. Footwear being resold
– we think StockX is the leader in this market
with gross market value north of $1bn. We connect buyers and
sellers the same way that the world’s stock markets
connect buyers and sellers. Just like Apple doesn’t
trade at the same price every single day in
the market, nor does a particular sneaker trade for
the same price from day-to-day. Some people’s closets, you look
at it and it’s stock portfolio. There’s some shoes
I love so much, I got 41 pairs of
the same exact shoes. Resell’s all about
product allocation. It’s all about who can get
it and where you sending it that the person is
willing to pay you more. We think this market
can grow from $2bn to $6bn in a relatively
short time period. These days sneakers
are more like stocks than your average trainers. Prices up and down like
Wall Street, some experts value the sneaker resale
market at over $2bn. And it could be $6bn by 2025. Uh, got this drank in my cup. Oh, I fill that cup,
I fill that cup. We’re going to take a
deep look at the industry, show you who and what
is making it move. Is it lost, baby, tell
me what you plan on it. I had lost a job and something
that I enjoyed doing. And I was just trying
to find another job, and I figured selling
sneakers would hold me over until I found
that other job. Well, that other job never came. And we wind up opening this bank
account, get a little $2,500 lot of credit line. And the day I signed
the lease to my store, I had $40 to my name. So in four years, it jumps from
$40 to $20m in sales to 2019. We wind up teaming up
with American Eagle, and I sell part of my
business to American Eagle. And I got Urban Necessities
inside American Eagle. There’s ultimately
some companies here that are earning very
good economic returns on facilitating these exchanges. And I think you’re
seeing investors look at these businesses
very seriously. ComplexCon, 6am right now. There’s literally
nobody here yet. I will be the first person to
purchase the Safari Pack that is coming out… three new different shoes,
should be very profitable. They cost around, I
think, $230, retail, should be able to
sell for about $600. Let’s see how many we could get. We’re also going to be
heading to Chinatown market. Converses are going to be $100. Should be able to sell those
for about $400 to $500. But yeah, I can’t really
disclose how I’m here so early. But shout out to the blood. Thank you. The amount of money you can
make is essentially unlimited. And there are sneaker
resellers that we’ve seen, they’re earning several hundred
thousand dollars a year. The way to make
the most money is if you can acquire
these shoes at retail. We find out where is
it going to release? Who has the shoe? What retailers? How limited is the shoe? And if we possibly get
it before anybody else we are the ones that
create the market. There’s this thing
called “backdoor” now. Backdoor is pretty much getting
a shoe early from a retailer or somewhere like that or
someone that works inside. The chances of
any average person being able to buy a pair of the
shoes that are highly coveted is effectively zero. I have no idea how
kids get on there. On the resell, it’s like,
yo, what are y’all doing? It’s crazy. Demons in my heart, surrounded. But they’ll never take me. Drowning, you’re my lifeline. I’m drowning. You’re my lifeline, baby. Buyers reach out to us. It’s because they know the shoe
is going to go up in value, and you know what the hype
is about, especially now with all the marketing that’s
going on with social media and stuff like that. We’re tracking the
markets, let’s say the StockXs, the Goats,
eBay, and we’re trying to compete with their prices. We try to buy every pair
that comes out of the store. Get your ticket. Thank you. Remember, you guys
heard me already? Chinatown market. Number one, going to be
getting these Chucks. Are y’all ready? Hey, yeah, yeah. Yeah. So, right now we’re getting
the Chinatown market UV Chucks. They actually change colours,
pretty dope shoe, $100 retail. What’s going on, man? What can I do for you? I’ll take a size 10 high. So I just got a size 10,
high, in the Converses, a very, very dope shoe. As you can see, retail
is $100 on the shoe. Should be reselling
for about $500, $600. If you have a lot of capital
you’re able to hold onto them, and then eventually they’ll end
up going up, stuff like that. This is the shoe right here. You want to flash the UV light? They change colours. I’m Dylan Aryvand,
I’m 13 years old, and I started reselling
when I was eight years old. How much money do
you think you’ve made since you started
reselling, if you could estimate? Probably in the five digits. I mostly sell on StockX,
Goat, and the Sneaker Con app. We have a marketplace of
buyers that come to our sites and look for the most
sought after sneakers. Those buyers have
the opportunity to either buy it at its
market clearing price, or to be able to set
a price at which they are willing to buy that item. On the other side
of the marketplace, we have a really dynamic
marketplace of sellers. Consumers, individuals,
businesses, brands that are essentially
selling that same product, and also choosing a price at
which they want to sell at. I think it’s great, because
it’s become the Kelly Blue Book of sneakers,
and now everybody has a fair guideline
that everybody has to try to abide by. Because although you might
be able to get someone to justify your added
expense or different price, this polices what is essentially
like the wild, wild west. If you think the sneaker
business is worth $1bn, just imagine what the
counterfeit sneaker business is worth. The counterfeit business
is insane right now. Literally, you see every single
shoe being counterfeited, and they sell. People in the streets
are wearing them, and you can’t really tell. We literally only
buy from stores. The only thing that can
really sell on our platform is somebody that
has bought and held a shoe that’s in
perfect condition, that we then authenticate
to the buyer. Seller sends it to us, we
authenticate it, and make sure not only that it’s
real, but it’s the right size, the
right condition, it is what it’s supposed to be. And then we send
it to the buyer. StockX, I love y’all, for real. Love y’all. They changed the
whole way I operate. We end up finding a way to
get multiples of these shoes. It’s literally crazy
the way we get it, but we get a lot of
numbers in there. I’ve been my pack, baby. Virgin Louis V on my back, baby. Living fast, dying slow,
that’s the catch, baby. Suicide doors, around
and crash, baby. I do the dash, baby. These are some of the
purchases that we made. A lot of Converse,
these were pretty much the two sneakers of the event
that are actually profitable. Yeah, I ended up
getting a lot of pairs. Yeah, this was pretty
crazy, I ain’t even gonna lie, especially
for being by myself. None of my team is out here,
so I literally did all of this by myself. $870 off Converses,
that’s pretty good. That’s good, right there. Yo, where you at? I’m at the hotel. Yeah, I’m at the hotel. Yo, go back to ComplexCon. I’m going back right now. There’s going to
be a stash, right? Yeah, go back there now. Hurry up. All right, I’m coming now. I’m coming now. I don’t want no drama. They’re allowed? No? Don’t put up with no drama. I got the heat of a conner. And you keep the heat
while I keep you hotter. Where’s he got – where’s that? Where’s parking lot 41? I don’t know. Wait, let me think. Where the … is that at? Through Sneaker Con,
I’ve been able to… I’ve come to every single
show for the last four years. And in the last
two, three years, I’ve probably spent $10,
$11 mill buying shoes. Now keep in mind,
I started with $40. We just wanted to come together
and start, create a place where resellers could come
together with buyers and just buy, sell, and trade. This is the only industry in
the entire world with anything that has to do with buying,
selling, trading a good that accepts all walks of life. Certain retail, you
walk into the store, the second you walk into
the store, no matter what… It don’t matter
how you dress, it don’t matter how
educated you are. The second that
stereotype hits and you ask for something in that store,
they’re not going to help you, bro. They not. That happens to me
all day long, it’s the reason why I dress this way. And more women need more shots. You guys got any other? Other than the zebras,
y’all got any other size? I can’t find them in
the size right here. It’s a young, male-dominated
marketplace at this point. That’s not to say
women won’t, and girls won’t become more active
in this marketplace. Nike, Adidas, Jordan, they’re
making great shoes for girls too, and women, and I think
that women are a major focus inside Nike in particular. That’s where the
influencers need to go, because those are
the people that are going to get more
support than the athlete. The days of the athlete
being the influencers, those are, that’s
becoming extinct. The way a shoe builds
hype or goes from a $200 to a $1,000 shoe or anything
like that, I would say first, it’s going to be social media. The roll-out plans that
brands are doing now, and the competition
between the major brands to make sure that their
endorsers are doing something different to launch a product is
just adding hype to this stuff. Once the everyday human sees
these people wear these shoes they want the shoe. And that’s when the
resell comes in, because you can’t
purchase these shoes, and that’s where we come in,
because we’re going to be the people that have the shoes. Right now, the reason that
a lot of kids, especially the really, really young
kids are able to do this, is because everything
went digital. So the stash, you literally
have to run to a location and scan everything
with your phone, and that gives you the
chance to purchase the shoe. Let’s get it. Let’s go, let’s go. You know what time is it. Resellers are making the most
money out of this, for sure, right now. The manufacturers, they’re
ultimately earning, like I said, halo benefits. The hype and the buzz that’s
getting created in resale is 100 per cent filtering
back into the primary markets. It’s going to be interesting
to see how the companies start to try to monetise. You see now, they’re
putting out more pairs, flooding the market with it. The real business is
ultimately working with brands to become an alternate retail
channel, to literally IPO products into existence, where
brands can release products at a true market
value as opposed to this very antiquated
concept today of retail price. These limited edition scarce
Nike, Jordan, Yeezy, Adidas sneakers are a form of
creative self-expression for a demographic, these Gen-Z,
millennial consumers that are really obsessed with being
unique and differentiated. There’s no shortage
of fans, of people that want this stuff now. Everyone is always waiting for
the sneaker bubble to burst, and I don’t think it’s going
to happen anytime soon. My love for sneakers
will never go away. I think I’ll forever
be tied to Sneaker Con. There is a lot of money
to be made in this game. There’s thousands, if not
millions of transactions happening online per day. It’s nowhere near a bubble, bro. I think that as
StockX or Stadium Goods get these
evaluations, all it does is make people who
want to invest money in soaring markets more aware. We think this is,
kind of for lack of a less cliche
way of saying it, a truly revolutionary
form of commerce. This doesn’t exist outside
of the actual stock market. And we think that this is, not
only will it exist in 10 years, but this is logically how
these certain products should be sold. Our parents may not have
been paying attention to, this Jordan is coming out,
or this AirMax is coming out. But when they read something
in the Financial Times, or something else that there
is a billion dollar industry on the secondary market of
sneakers, that’s something that they’re paying
attention to, and it’s opened up
the eyeballs, it’s opened up sneaker
culture to the masses.

100 Comments

  • Financial Times

    October 24, 2019

    Take our survey and tell us what you like about our YouTube channel and would like to see more of: https://bit.ly/33SJ8AI

    Reply
  • Bryant721

    October 27, 2019

    Josh Luber is lying today get people to just go straight to StockX which was hacked multiple times . The average person can easily cop. It’s one of the most accessible markets for the average person. He’s a herb.

    Reply
  • dcwscn

    October 27, 2019

    3:26

    Reply
  • Daddy 6942021

    October 27, 2019

    2b is low

    Reply
  • LIFE OF A HYPEBEAST

    October 27, 2019

    Anyone know where that guy got his screensaver from I really like it

    Reply
  • adidaskid

    October 28, 2019

    It's definitely bigger than 2 billion 😂😂

    Reply
  • Keevan Crawford

    October 28, 2019

    Bad for the economy. Not a good sign of the times. Hyper inflation of a non-staple. Can’t maintain it’s worth when used.

    Reply
  • Kicks rUs

    October 28, 2019

    Backdooring = cheating

    Reply
  • Nathan Locklear

    October 28, 2019

    Delete this

    Reply
  • Marv Reckless

    October 28, 2019

    So who copped the SBB 3.0

    👇🏻

    Reply
  • david stratton

    October 28, 2019

    They keep releasing and the market will keep getting watered down!

    Reply
  • Yash Tripathi

    October 28, 2019

    I’ve only been doing this for a year and only managed to get one pair each time and I’ve already made $1.4k

    Reply
  • JT

    October 28, 2019

    Shoe game like the crack game get it while it’s hot case I think it’s not gonna stick around for that long

    Reply
  • The2ndHoles MyBackyard33

    October 28, 2019

    Its crazy to me how these white people come in and make all this money off of what we melanin kings and queens make fly…

    Reply
  • Career The Brain

    October 28, 2019

    What app was used for that fear of god shoe

    Reply
  • Dylan Scanley

    October 28, 2019

    Song at 7:45

    Reply
  • Joe Active

    October 28, 2019

    #TwojskickssellingFakes

    Reply
  • JayMck 7

    October 28, 2019

    What these guys aren't telling you is yeah they sell some legit pairs but they are buying fakes by the dozens then turning around and scamming people. Stockx is "authenticating" fakes every day.

    Reply
  • My Dick In A Box

    October 29, 2019

    5:41 this man really trying to expose this 13 year old to the IRS? 😂

    Reply
  • Doug Kaplan

    October 29, 2019

    to the dude speaking at [email protected]:20 – strong disagree that the sneaker resale market is a "truly revolutionary form of commerce" that "doesn't exist anywhere outside of the actual stock market". Nothing new about this – people have been flipping records, toys, cards, and all manner of limited edition items for many years. StockX is not Ebay.

    Reply
  • C S

    October 29, 2019

    Fat kid with a beard but no bass in his voice

    Reply
  • Nick Benedicto

    October 29, 2019

    dude was #1 in line and he copped a size 10. im done bucko

    Reply
  • Toke Life

    October 29, 2019

    Back door scum being elitist knob heads, FUQ THEM ALL

    Reply
  • ArtGod

    October 29, 2019

    Remember when our parents thought being a sneaker lover was stupid….now they looking stupid.

    Reply
  • Tank gunna

    October 29, 2019

    This fuckboy economy is crazy

    Reply
  • yonchrr

    October 29, 2019

    Typical fking vermin trying to make money off shoes. Hope they go to jail. Typical.

    Reply
  • Yahya Hussein

    October 29, 2019

    Gone are the days when you could wake up whenever you wanted to on release day & cop something stress free

    Reply
  • ShaqKicks

    October 29, 2019

    Funny thing is this sneakers are worth $10-20 to make lol

    Reply
  • greekchimera

    October 29, 2019

    Sorry guys…in my eyes the whole thing has nothing to do with reselling…this is all black market selling…they are all buying these shoes just to sell them…if it really was for reselling than the sport brands would run their business differently..

    Reply
  • Qurious Styles

    October 29, 2019

    LEAVE MY CULTURE ALONE!

    Reply
  • King Kemet 25

    October 29, 2019

    Damn $50k over a weekend

    Reply
  • Jason Noto

    October 30, 2019

    The same way that people buy and sell classic cars is very similar to what is happening in shoe culture we are just now seeing it that is really what's happening actually

    Reply
  • Dennis Dominguez

    October 30, 2019

    What's sad is that its not about the love for sneakers anymore but how much you can sell it for. These guys are not about the culture but only how much money they can make.

    Reply
  • Dhavid Sontay

    October 30, 2019

    11:30 why they have to go running 🏃🏻‍♀️

    Reply
  • Call Me Carolina

    October 30, 2019

    Any person who buys converse for 400 to 500 dollars better have a CAR!!!

    Reply
  • TheShoeGame

    October 30, 2019

    The shoe game has changed A LOT!

    Reply
  • Anonymous Wombat

    October 30, 2019

    I remember being a small kid (before the instant digital age) and shopping for shoes at Foot Locker/Local Shoes stores and thinking there’s got to be more shoes than this for the public. You see everybody wearing these same shoes. Then I got introduced to the AJ 1 by my cousin and I instantly fell in love with the “underground shoe market.”

    Reply
  • Sergio Torres

    October 30, 2019

    This is the reason i will never buy from resellers

    Reply
  • Odi Gomez

    October 30, 2019

    The shoe companies are going to end this shoe market by pumping more shoes in the market and also by cutting the resellers out. They can easily hire someone price a shoe and gauge the market on how much a consumer is willing to pay. Instead of you buying the shoe for $150 and reselling is for $400, the shoe company is just going to sell it for $400.

    Reply
  • Franco Cerella

    October 31, 2019

    I dont buy hype shoes.👎 China town shoes👎. Resellers.👎
    Bay fam

    Reply
  • true_og_ 2345

    October 31, 2019

    With other words every cocksucker is on sneakers now….I am in since 1991 and the game isn’t cool anymore

    Reply
  • Rick HTX

    October 31, 2019

    There’s money to make on everything ! This is nothing new ! It just simply focuses on income from tennis shoes .. resale is the name of the game ! Capitalism

    Reply
  • Sneaker Invest

    November 1, 2019

    Lol

    Reply
  • Just Sport

    November 1, 2019

    What's the name of the song on 4:02 ???

    Reply
  • Boss Tuck

    November 1, 2019

    Stock X over price the same shoes I can buy at retail price all the time…I'm cool🤣😂🤣😂

    Reply
  • Michael Anderson

    November 1, 2019

    Soooo I have no chance I can be a reseller cause I don't live anywhere close to a store that sells the fuego kicks so I can only hey 1 pair of a shoe if I'm fast enough on curtain apps

    Reply
  • JP

    November 2, 2019

    A bunch of fat greedy nerds

    Reply
  • Xavier Roca

    November 2, 2019

    Shout out to jav

    Reply
  • SneakerTalk

    November 2, 2019

    Man have things really changed over the years

    Reply
  • Ridhiman Soni

    November 2, 2019

    what's the song at 1:32 ???

    Reply
  • Renato Schumliansky

    November 2, 2019

    This video didn’t age well 😐

    Reply
  • Gabriel Ortiz

    November 2, 2019

    I respect the hustle but it is sickening how fucked up the shoe industry is

    Reply
  • Sonny Meredith

    November 2, 2019

    no one wears kicks anymore

    Reply
  • Jordan Tyson

    November 3, 2019

    the market's topped

    Reply
  • Marcos Portas

    November 3, 2019

    Backdoor buy + online Bot buy (=) CHEATING

    Besides stockX can't legit check so much sneakers in so less time … too much close 1:1 replicas are moving inside

    Reply
  • Marcos Portas

    November 3, 2019

    The new Tulips market

    Reply
  • Doostain

    November 3, 2019

    Let’s see how well this industry does when we hit a recession, people lose jobs, and disposable income disappears.

    Reply
  • FearTheHype

    November 3, 2019

    LMFAAOOO Lee @ 3:27 ☠️☠️☠️

    Reply
  • DR NO

    November 3, 2019

    Remember baseball cards?
    This will be the new baseball cards
    It will be dead in 20 years

    Reply
  • Gummy Visuals

    November 3, 2019

    Do any of them report their taxes?

    Reply
  • S

    November 4, 2019

    you dumbfucks … this is not an asset… worst form of investment. The moment you wear it outside the value is lost. fuckoff. when recession hits ill literally buy entire collections for 1/10th the price

    Reply
  • Silkemyk

    November 4, 2019

    Non-producing asset.

    Reply
  • clovecipher 7

    November 4, 2019

    NOT ANYMORE BIG UPS TO NIKE FOR SHUTTING DOWN THE BACK DOORS!

    Reply
  • Ashaune Records

    November 4, 2019

    Nerds kmt it’s Jussa sneaker

    Reply
  • Playboii Quez

    November 5, 2019

    That’s brazy

    Reply
  • Naiyo

    November 5, 2019

    Wasn't there a period where tulips were considered hot commodities…

    Reply
  • Jack Friel

    November 5, 2019

    7:38 someone PLSS TELL ME the song

    Reply
  • lauren love

    November 6, 2019

    Whats the song on 7:28

    Reply
  • John Doe

    November 6, 2019

    Backdoor niggas

    Reply
  • eric kariuki

    November 7, 2019

    America's consumerism is revolting!

    Reply
  • police

    November 7, 2019

    This economy doesn't seem safe proof to me. There is no skill to it. Basically who ever has the most money wins. It can very easily be Monopolized ending up with just a few people or organizations buying and selling between each other because normal people would no longer have the funds to compete. There is no randomness that allows the average person to continue to compete against more wealthy ppl.

    Reply
  • dad

    November 7, 2019

    Stockx is a cancer of reselling!!!!!

    Reply
  • John Wilson

    November 7, 2019

    Shoes have a shelf life, the rubber and glue go bad.

    Reply
  • John Wilson

    November 7, 2019

    People can barely afford the limited edition price, what do you have to be into? Too be able to pay five times more than retail.
    Another thought, back in the day I remember people getting robbed for their Air Jordan's and they were only $60
    I don't get this world, it's like the gold rush days. Only the beautiful people can afford it.

    Reply
  • Chris Ingram

    November 8, 2019

    exactly!!!! we create the market. so stop bricking all these damn shoes. quit being broke and list them for the high and wait. people will buy them !!! @lmtd_customs @lmtdconsignment

    Reply
  • Chris Ingram

    November 8, 2019

    them chucks bricked

    Reply
  • West Mill

    November 8, 2019

    Weirdos took over the shoe game

    Reply
  • Matooley O'Brien

    November 9, 2019

    You cowards At Financial Times disabled comments on Video "Pack your bags! Italy cracks down on migration." THERE'S ONLY SO MUCH RESOURCES AND WEALTH IN ANY 1 COUNTRY…. All these migrants want to just Pour in to countries without following protocol that our families ifrirnds and ancestors gave their lives making it what it is…. Why don't they do what we done.?.. Stay and fight to make your own country great and the way you like it… the citizens of Italy that have been here for generations some have gave their lives and work hard to make Italy what it is…

    Reply
  • HaMayam

    November 9, 2019

    You ain't foolin nobody Upscale. I know a woman when I seen one, no matter the disguise…

    Reply
  • California Cowboy

    November 10, 2019

    Nike about put a clamp on this

    Reply
  • いたちイチゴ

    November 10, 2019

    Not reselling my Beluga 1.0 or 750V2 idgaf what you offer me, unless it’s a rhd 997 911 GT3

    Reply
  • andrew

    November 10, 2019

    lol get a real job

    Reply
  • Polyester Avalanche

    November 10, 2019

    Only a matter of time before government sticks their nose in and stops backdoors.

    Reply
  • Fr3d Des!gn

    November 11, 2019

    I got lucky and won a pair of Yeezy 350 V2 – Black Reflective worth around 2K. Also won a pair of TS1 Low 9.5 thru SNKRS app worth around 800-1000. The sneaker game just continues to grow. 6 Billion by 2025 might be a conservative estimation.

    Reply
  • renzoc

    November 12, 2019

    AAAAAAAAAAAAAnd this is why I stopped buying sneakers. Resellers fucked up the game for EVERYONE.

    Reply
  • lilcrocop

    November 13, 2019

    R.I.P. to these scumbags soon!!! lmao!!

    Reply
  • TheGloReferee

    November 13, 2019

    6:25 mans sound just like Smokepurpp

    Reply
  • Zony Metaphorz

    November 15, 2019

    11:54 "you know what time is it." is he asking or telling?

    Reply
  • Joshua Hammock

    November 15, 2019

    I am 37 and still love sneakers. I grew up watching Jordan play and those to me are why I love my shoes. But I have never nor will I ever pay anything over retail for a shoe. I think bots, backdoor deals and anything else should be banned and I also think reselling a shoe for more than it's worth should be illegal.

    Reply
  • t laww

    November 15, 2019

    Video is full of clowns

    Reply
  • joelybgood

    November 15, 2019

    500 for a chuck? GTFO dude lmaooo!!!

    Reply
  • Luis Jimenez

    November 15, 2019

    This business is crazy man. I’ve been blessed and have seen 5 figure salaries every month.

    Reply
  • Lanijiro

    November 18, 2019

    awesome! I'm in.

    Reply
  • Jimmie sports

    November 18, 2019

    🔥

    Reply
  • Amit Kumar

    November 18, 2019

    Only dickheads would pay so much for a pair of shoes!

    Reply
  • Power CreateWealth

    November 18, 2019

    Its because its a free market and prices are not manipulated its purely determined by demand. I dont think its ever going to have a bubble. But lets see

    Reply
  • Alan Padilla

    November 18, 2019

    I just started with 230$ and so far have made 800$ and I’m kinda stuck right now😂

    Reply
  • Capo King

    November 19, 2019

    Soon there won't be limited releases. The whole thing about having ONE account for Foot Action…Foot Locker etc…it's only the beginning. These resellers aren't gonna be around for long time. Mark my words.

    Reply
  • volcommerce

    November 19, 2019

    Just copped a pair of Jordans for $58. All you old sneakerheads trying to advance, it's all over now, take it like a MAN !

    Reply
  • Yuvraj Prabhakar

    November 19, 2019

    What if companies started making more pairs it will kill the market

    Reply

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