Looking for that rare pair of Nike shoes? Try looking in the stock market…of sneakers! StockX, which launched in February 2016, is the online secondary market for high-end branded kicks in ‘deadstock’ condition, i.e., unused with the original box in place.
The website shows real-time updates of bids and asks for each pair of shoes listed on its portal (while maintaining traders’ anonymity), and validates the authenticity and condition of each item before it’s shipped, while charging sellers a 10% commission.
With an emphasis on price transparency, StockX uses data spanning the last 12 months from various secondary marketplaces/resale platforms including its own to graph (re)sale price movements and to display metrics such as the latest price premium over the original retail value, total quantity sold, and the average selling price for each deadstock pair featured on the site. It also quantifies price fluctuations by metrics such as volatility index, 12-month range and ‘52-week highs/lows’.
The similarities with actual financial stock markets don’t end there. Through the portal, “sneakerheads” can even get their entire kicks collection – or, their ‘sneaker portfolio’- evaluated at the latest resale market prices (just like an investor would measure their investment portfolio’s worth). Actor Mark Wahlberg is among the ‘portfolio holders’ on StockX.
Also featured on the site is a blog which has the latest buzz on new/upcoming releases by coveted sneaker brands as well as important updates about the secondary market.
StockX ventured into a sort of ‘IPO of things’ recently when Roc-a-Fella Records collaborated with the website to launch its new line of limited edition T-shirts and posters to mark the 20th anniversary of rapper Jay-Z’s debut studio album, ‘Reasonable Doubt.’ Following a pre-bidding session on StockX for 48 hours, purchasers were able to resell the items.
Sneakerhead Turns His Passion into Business
It all started when former IBM employee Josh Luber, a self-proclaimed “sneakerhead,” was hooked on bidding for shoes on eBay, which led him to the idea of having a logbook to better capture information on sneakers’ secondary market prices.
In 2012, he built a data blog named “Campless” for his idea. The name is derived from the practice of sneaker-lovers lining up or, “camping” outside retail stores to get their hands on a just-released item. Those who are ‘rationed off’ due to the sneakers’ limited number can later bid for them on the secondary market, where Campless data came in handy.
When billionaire mortgage lender Dan Gilbert partnered with Luber, Campless was remodeled from a data warehouse into something more—a sneaker marketplace and data center and active blog, which they named StockX.
Bottom Line for Investors
Incorporating equity market-like trading features for sneakers, StockX is fast emerging as the latest trailblazer in eCommerce. At a time when the annual market size for sneaker reselling ranges between $200 million to $500 million (as estimated by an NPD analyst), the StockX model looks promising. That’s also evident from the unbelievable premiums sneakers can trade at in the secondary market: for instance, a size 10 pair of Adidas Yeezy Boost last resold for $2,235 – more than 538% than its original retail price.
Already featuring data for around 5,000 kinds of sneakers, StockX is expected to expand into a more variegated ‘stock market of things.’ Luber has expressed plans to include watches, clothes, handbags, toys etc. on the exchange. That should only add to the popularity of the site, which already boasts of associations with celebrities like Eminem and Ne-Yo.
In addition to functioning as a trading platform and guide for buyers and sellers in the resale market for branded items, StockX may also be creating ‘value’ (read: hype) for high-end brands – something that can possibly boost demand for their forthcoming primary market release. At the end of the day, StockX is further evidence that prices are determined by supply and demand, measured most effectively by a marketplace.
Whether you have a love for sneakers of not, StockX shows how consumer spending is causing a shift to e-commerce platforms. It is important to keep in mind that spending does not only affect shopping preferences, it is also a key factor to consider as you plan for retirement. In fact, managing spending is a key step to planning for retirement. To get an inside look into effective ways to plan for your retirement, download “4 Steps to Managing Your Retirement Assets.” Click on the link below to download this guide today:
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