There has been a lot of buzz regarding e-commerce over different aspects of the industry in the past decade. It has ranged widely from cryptocurrencies to unanticipated online stores making their dent in the market sector. However, a new investment trend is on the rise and has been slowly gaining traction within the last decade. Sneaker investments have become a popular investment for many, the largest demographic consisting of late teens and young adults, investing in popular pairs like the rare jordan sneakers and later selling them for a significant markup to the right buyer. As many make millions through these investments, several believe that it’s all part of the hype, and the market will soon dwindle, as is the case for any hot stock of the time. Is the country’s sneaker culture here to stay? Read on to find out.
Sneaker Investments: What Determines Their Market Value?
Sneaker sales have been at an all-time high, with many looking to grab a piece of the action while others are looking for rare pieces to add to their collection. The most important aspect which adds value will be when there is a story associated with each pair, like the pair worn in the first national game or worn by a celebrity star player during their career. The more emotional the story, the higher the perceived value in the market. Pieces like the rare jordan sneakers can attest to this, and as more and more customers dive in, a stable market is established.
Celebrities started endorsing products while notable players signed their autographs on them, which was then sold by major companies and brands at a huge market price. Blend the statistics with the rising fashion industry and its enticing trends, and voila! A market for luxury sneakers is built that draws the attention of high profile investors and beginner sneaker collectors alike. The change has been so significant that sneaker sales are considered a better investment than mutual fund transactions, which is in itself a significant area of investment for many. As long as people are willing to cash in, there will always be a consequential market demand.
Looking To Buy The First Pair Of Kicks As A Beginner? Here Are Some Things To Consider:
As with any good investment, time and demand for the product are crucial when looking through hundreds of potential stocks. Sneaker sales aren’t that different either, be it rare jordan sneakers or other types of sneakers. Nevertheless, here are some pointers to consider first before jumping in on the investment:
- Always stay clear of the hype and look into sneaker pairs that have the potential of earning value over time. Sneakers might be a low-risk investment, but that doesn’t mean one has to be reckless when buying the best pairs. Hype is quick and short-lived and isn’t the best way to invest. What goes up in a short period can come crashing down just as quickly.
- Find people who are into this niche and learn from them. As a beginner, many mistakes can be avoided if people are willing to listen or tap into the experience of professional investors in the sneaker industry. Consequently, long time sneaker sellers will also have beneficial connections that beginners can exploit.
- Understand that this is a highly competitive market, so proper research and analysis is a must before aiming for the best pairs. Patience is the key here, and as mentioned before, short term hype is extremely volatile. Look for long term growth rather than short term money grabs.
- Know the audience when selling and filter them accordingly. Collectors, sneaker enthusiasts and fashionistas should be in the top category of buyers that sneaker sellers should look into. These are the only customers that can perceive the best worth for a good pair of kicks.
- Although Australia does its best to run authentic sales in cities like Melbourne or Sydney, still beginner investors should be wary of counterfeits in the market, especially when it’s the first sale. Learn to spot the right ones and always be cautious of sketchy stores and deals.
