The sneaker resale market in 2023

Limited editions

One major factor is the increasing consumer demand for limited edition and exclusive sneakers. Many sneaker enthusiasts, particularly those who are considered "sneakerheads," are willing to pay a premium for rare and hard-to-find sneakers, which has led to a thriving market for reselling these types of shoes.

This demand for limited edition and exclusive sneakers has led to a number of major brands and retailers releasing limited runs of their most popular shoe models. These releases are often highly sought after by sneaker enthusiasts and can sell out quickly, leading to a scarcity of the shoes on the secondary market. This scarcity, in turn, drives up the prices of the shoes, making them more valuable to resellers.

In addition to the scarcity of limited edition and exclusive sneakers, another major factor driving the sneaker reselling market is the cultural significance of certain shoes. Many sneakers have become cultural icons, with certain models and collaborations being highly sought after by collectors and enthusiasts. This has led to a market in which certain shoes can command extremely high prices, even years after their initial release. The most valuable sneakers are from collaborations and limited-edition releases. Brands such as Nike, Adidas, and Jordan continue to dominate the market, but there is also a growing demand for lesser-known brands and independent designers. These collaborations and limited-edition releases have created hype and exclusivity, making them more valuable in the secondary market.

Marketplaces

Another key factor that has contributed to the growth of the sneaker reselling market is the rise of online marketplaces and social media platforms that make it easier for buyers and sellers to connect. These platforms have revolutionised the way people buy and sell sneakers, making it easier for people to find and purchase the sneakers they want, as well as for sellers to reach a wider audience and sell their sneakers at a higher price.

Online marketplaces such as eBay, StockX, GOAT and other similar sites have become go-to destinations for sneaker enthusiasts looking to buy and sell limited edition and exclusive sneakers. These platforms offer a wide variety of sneakers and make it easy for buyers to search for and purchase the shoes they want. They also provide a safe and secure way for sellers to list their sneakers and reach a large audience of potential buyers.

Social media platforms such as Instagram, Twitter, and Facebook have also played a major role in the sneaker reselling market by providing a platform for sneaker enthusiasts to connect, share information about upcoming releases, and sell their sneakers. These platforms have made it easier for sellers to reach a wider audience and have also helped to create a sense of community and culture around sneaker collecting and reselling.

Overall, the rise of online marketplaces and social media platforms has made it easier for buyers and sellers to connect and has played a major role in the growth of the sneaker reselling market. These platforms have made it easier for people to find and purchase the sneakers they want and for sellers to reach a wider audience and sell their sneakers at a higher price, which has led to a thriving market for reselling sneakers.

A worldwide phenomenon

In terms of geography, the North American market is currently the largest for sneaker reselling, with the United States being the biggest contributor. This can be attributed to several factors, including the fact that the US has a large population and a strong culture of sneaker collecting and reselling. The US sneaker market is driven by a combination of factors, including the popularity of athletic shoes, the influence of hip-hop culture, and the rise of sneakerheads.

In the United States, the sneaker reselling market is primarily driven by a group of dedicated enthusiasts, known as "sneakerheads," who are willing to pay a premium for rare and exclusive sneakers. These enthusiasts often purchase multiple pairs of the same sneaker, with the goal of reselling them at a higher price. This has led to a thriving market for reselling sneakers in the US, with many sellers making a significant profit by flipping limited edition and exclusive sneakers.

In addition to the North American market, Asia and Europe are also significant markets for sneaker reselling. In Asia, the Chinese market is particularly notable, driven by the increasing purchasing power of the middle class. In recent years, China has become one of the largest sneaker markets in the world, and its middle class population has become increasingly interested in luxury fashion items, including sneakers.

The United Kingdom is also a major player in the European market, driven by its strong fashion industry. The UK has a long history of fashion innovation and has become a center for sneaker culture in Europe. The UK has a large population of sneaker enthusiasts and a strong market for reselling sneakers, making it an important market for sneaker reselling.

Overall, the sneaker reselling market is a global phenomenon, with significant markets in North America, Europe, and Asia. The North American market, led by the United States, is currently the largest, but the market in Asia, particularly China is growing fast. Also, Europe, with countries like the United Kingdom, is also an important market for sneaker reselling, driven by strong fashion industry and culture.

If you haven't already, we highly recommend to watch this great documentary made by the Financial Times talking about the sneaker resale market:

Key performance indicators

• Market size: This refers to the total value of the sneaker reselling market. According to a report by Cowen and Company, the global sneaker resale market was valued at $6 billion in 2019 and it is estimated to reach $30 billion by 2030.
• Average selling price: This refers to the average price that a sneaker is sold for on the reselling market. According to data from StockX, the average selling price for a sneaker in 2020 was $390.
• Popularity of certain sneakers: This refers to the number of sales and the amount of money generated by certain sneakers. According to data from StockX, the most popular sneaker of 2020 was the Off-White x Air Jordan 1 "Chicago"
• Brands popularity: This refers to the popularity of certain brands in the reselling market. According to data from StockX, Nike was the most popular brand in 2020, accounting for over 50% of all sneaker sales on the platform.
• Popularity of certain marketplaces: This refers to the popularity of certain online marketplaces among sneaker enthusiasts. According to data from SimilarWeb, StockX, GOAT, and Grailed were the most popular sneaker reselling websites in 2020.
• Popularity of certain regions: This refers to the popularity of the sneaker reselling market in certain regions. According to a report by Cowen and Company, North America is the largest market for sneaker reselling, followed by Asia and Europe.
• Popularity of certain categories: This refers to the popularity of certain categories such as limited-edition releases and collaborations in the sneaker reselling market. According to data from StockX, limited-edition releases and collaborations were among the most popular categories in 2020.

Overall, the sneaker reselling market is expected to continue growing in the coming years, driven by consumer demand and the proliferation of online marketplaces that make it easier for buyers and sellers to connect. Additionally, the trend of collaboration and limited-edition releases is expected to continue, which will drive the value of these sneakers in the secondary market.