Josh Luber The secret sneaker market and why it maters.

Summary

The Air Jordan 3 Black Cement is hailed as a pivotal sneaker in history, launching in 1988 and revolutionizing Nike's marketing. This sneaker not only propelled the Air Jordan brand but also became a cultural icon, influencing future online commerce. The script delves into the sneaker's re-releases, celebrity endorsements, and its role in the $1.2 billion resale market. It highlights the passion of sneakerheads, the data behind the market, and the potential for a regulated 'stock market of things,' where sneakers and other collectibles could be traded like stocks, offering a new dimension to investment and commerce.

Takeaways

• 👟 The Air Jordan 3 Black Cement is considered a pivotal sneaker in history, having a significant impact on Nike's marketing and the sneaker industry as a whole.
• 📈 The sneaker resale market is a $1.2 billion industry, with over 9 million pairs resold in the United States alone in the past 12 months.
• 🌟 Celebrities and collectors alike contribute to the popularity and demand for limited edition sneakers, driving up the resale value.
• 📊 Data analytics play a crucial role in the sneaker market, with platforms analyzing millions of transactions to provide insights into the market's trends.
• 💰 Sneakerheads can track the value of their collections over time, similar to how one would with a stock portfolio, indicating the investment potential of sneakers.
• 🚀 Nike dominates the secondary market, accounting for 96% of all shoes sold, highlighting the brand's influence and control over the market.
• 🔑 Limited supply and distribution strategies are key to Nike's success, creating hype and driving up the value of their sneakers in the resale market.
• 🚨 The unregulated nature of the sneaker resale market can lead to issues with authenticity and price transparency, similar to the challenges faced in the stock market.
• 🌐 The idea of a 'stock market for things' is introduced, suggesting a more regulated and efficient way to buy and sell sneakers and other collectibles.
• 💡 The sneaker market serves as a unique investment opportunity, especially for younger generations who cannot participate in the traditional stock market.

Q & A

What is the significance of the Air Jordan 3 Black Cement in sneaker history?

The Air Jordan 3 Black Cement is considered one of the most important sneakers in history because it was the shoe that started Nike's marketing as we know it, propelled the entire Air Jordan lineage, and possibly saved Nike.

How often has the Air Jordan 3 Black Cement been re-released, and what is the typical response to its release?

The Air Jordan 3 Black Cement has been re-released four times. Each release typically sees the sneakers selling out globally within minutes, with people often camping outside of sneaker stores days before the release.

What is the role of sneakerheads in the sneaker market?

Sneakerheads are a crucial demographic in the sneaker market. They are the tastemakers who drive the hype, marketing, and PR, which in turn helps Nike sell millions of sneakers to a broader audience.

What is the size of the resale sneaker market, and how does it compare to the retail market?

The resale sneaker market is estimated to be worth 1.2 billion dollars, while in the past 12 months, Skechers, the number two footwear brand, had a net income of 209 million dollars, indicating the significant profit made by sneakerheads in the resale market.

How does Nike control the supply and demand dynamics in the sneaker market?

Nike controls the supply and demand dynamics by using limited releases of sneakers and strategic distribution, creating hype and scarcity that drive up the value and desirability of their products.

What is the percentage of Nike's dominance in the secondary sneaker market?

Nike, including the Jordan brand, accounts for 96% of all shoes sold on the secondary market, indicating near complete domination.

How much profit did sneakerheads make selling Nike sneakers in the secondary market last year?

Sneakerheads made approximately 380 million dollars selling Nike sneakers in the secondary market last year.

What is the comparison between the sneaker resale market and the stock market?

The sneaker resale market is unregulated and operates on supply and demand, with no central exchange, unlike the stock market. It thrives on the street and online, with transactions happening in various places, including online platforms and physical stores.

What is the potential for a 'stock market of things' as proposed in the script?

The potential for a 'stock market of things' is to create a more efficient, transparent, and regulated market for buying and selling not just sneakers, but also other collectibles and seasonal items, similar to how stocks are traded on the stock market.

How does the script suggest sneakers could be a democratized investment opportunity?

The script suggests that sneakers could be a democratized investment opportunity because they are accessible to a wide range of people, unlike the stock market which requires a minimum age and financial resources. Sneakers provide a tangible and potentially profitable investment for many.

What is the potential return on investment for sneakers like the Air Jordan 3 Black Cement over time?

The script implies that there is a significant potential return on investment for sneakers like the Air Jordan 3 Black Cement, with the example given that investing in them in 2011 could have doubled the money, outperforming the S&P 500 and Apple's stock growth.