Josh Luber The secret sneaker market and why it maters.
Summary
TLDRThe 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.
Outlines
👟 The Impact and Resale Market of Air Jordan 3 Black Cement
The first paragraph discusses the significance of the Air Jordan 3 Black Cement sneaker, highlighting its historical importance since its initial release in 1988. It emphasizes the sneaker's role in shaping Nike's marketing strategies and its impact on the sneaker industry. The paragraph also touches on the sneaker's multiple re-releases and its popularity among celebrities and collectors. It delves into the resale market, mentioning the 2011 re-release's rapid sell-out and the subsequent resale on platforms like eBay at inflated prices. The speaker, a self-proclaimed sneakerhead and strategy consultant, shares insights into the sneaker market's size and the community's passion, leading to the development of a data-driven price guide and analytics platform for sneakers.
📈 Comparing Sneakers to Stocks and the Role of Nike
The second paragraph draws parallels between the sneaker market and the stock market, focusing on the investment opportunities that sneakers present, especially for younger individuals. It discusses the unregulated nature of the sneaker resale market and the potential risks associated with it, such as violence over coveted releases. The speaker then zeroes in on Nike's dominance in the secondary market, with a 96% share, and how the company's strategy of limited releases and controlled distribution fuels the market. The paragraph also touches on the idea that the resale market is an artificial construct created by Nike to sell more shoes and build brand loyalty, with sneakerheads acting as both consumers and marketers.
🌐 The Vision for a Regulated Marketplace for Sneakers and Beyond
In the final paragraph, the speaker envisions a regulated marketplace for sneakers, akin to a stock exchange, to bring efficiency, transparency, and authenticity to the buying process. The idea is to create a centralized platform where sneakers, along with other collectibles and marked-down items, can be traded like stocks, with options for complex financial transactions. The speaker argues that such a market could democratize access to investment opportunities and provide a more sophisticated way to engage with the sneaker economy. The paragraph concludes with a hypothetical scenario where investing in sneakers could yield significant returns, drawing a comparison to the potential gains from investing in the stock market.
Mindmap
Keywords
💡Air Jordan 3 Black Cement
💡Sneakerheads
💡Resale Market
💡Supply and Demand
💡Data-Driven Market
💡Investment Opportunity
💡Nike's Marketing Strategy
💡Authenticity
💡Stock Market of Things
💡Hype and PR
Highlights
The Air Jordan 3 Black Cement is considered one of the most important sneakers in history, first released in 1988.
This sneaker marked the beginning of Nike's modern marketing strategy and helped to save the company.
The Air Jordan 3 Black Cement has been re-released four times and is sought after by celebrities and collectors.
In 2011, the last release of the Jordan 3 Black Cement sold out globally within minutes, with people camping outside stores days in advance.
The resale market for sneakers is a $1.2 billion industry, with over 9 million pairs resold in the US in the past 12 months.
Sneakerheads, or sneaker collectors, are a crucial demographic for brands, acting as tastemakers and influencers.
The speaker, a self-proclaimed sneakerhead, has started three companies and works as a strategy consultant with a focus on sneaker data.
The goal is to develop a price guide using real data to provide a data-driven view of the sneaker market.
Analyzing over 25 million transactions, the speaker provides real-time analytics on thousands of sneakers.
Sneakerheads can track the value of their collection over time, similar to an online brokerage account for stocks.
The resale market is dominated by Nike, which accounts for 96% of all shoes sold on the secondary market.
Sneakerheads made $380 million in profit selling Nikes on the secondary market last year.
Nike uses limited supply and strategic distribution to control the sneaker market and drive demand.
The sneaker market operates on supply and demand, with Nike creating an artificial commodities market.
Sneakerheads drive marketing, hype, PR, and brand cachet, enabling Nike to sell millions of sneakers.
Nike could kill the resale market by releasing more shoes, but it's not in their best interest to do so.
The speaker envisions a stock market for merchandise, where sneakers and other collectibles could be bought and sold like stocks.
Investing in sneakers could offer significant returns, as illustrated by the potential investment in Air Jordan 3 Black Cement.
Transcripts
this is the air jordan 3 black cement
this might be the most important sneaker
in history first released in 1988 this
is the shoe that started Nike marketing
as we know it this is the shoe that
propelled the entire Air Jordan lineage
and perhaps saved nike the air jordan 3
black cement did for sneakers what the
iphone did for phones it's been
re-released four times every celebrity
has been seeing wearing it there's a
site about what to wear with the black
cement it's been right under your nose
for decades and you never look down and
right about now most of you are probably
thinking sneakers yes yes sneakers some
extraordinary things about sneakers and
data and Nike and how they're all
related possibly to the future of all
online commerce in 2011 the last time
that Jordan three black sim are released
at a retail of 160 dollars it sold out
globally in minutes and that's because
people were camped outside of sneaker
stores four days before it went on sale
and just minutes after that thousands of
those pairs were an ebay for two and
three times retail in fact there's over
a thousand pairs on ebay right now four
years later and here's the thing this
happens every single Saturday every week
there's another release or two or three
and every shoe has a story as rich and
compelling as the Jordan three black
cement this is Nike building the
marketplace for sneakerheads people who
collect sneakers and my daughter it's an
I love dad t-shirt for the brand's
sneaker heads are a very important
demographic these are the tastemakers
these are the Apple fanboys because who
else is going to buy a pair of eight
thousand dollar back to the future
sneakers
yeah eight thousand dollars and while
that's obviously the anomaly the resale
sneaker market is definitely not 30
years in the making what started as an
underground culture of a few people who
like sneakers just a bit too much now we
have sneaker addictions and a market
were in the past 12 months there have
been over 9 million pairs of shoes
resoled in the united states alone at a
value of 1.2 billion dollars and that's
a conservative estimate I should know I
am a sneakerhead this is my collection
in the pantheon of great collections
mine doesn't even register I haven't got
250 pairs but trust me I in small time
people have thousands I'm a very typical
37 year old sneaker head I grew up
playing basketball Michael Jordan played
I always wanted air jordans my mother
never buy near Jordans as soon as I got
some money i bought air jordan literally
we all have the exact same story but
here's her mind diverged after starting
three companies i took a job as a
strategy consultant why very quickly
realized that i didn't know the first
thing about data but i learned because i
had to and i liked it so I thought I
wonder if I get all different sneaker
data just to play with from my own
amusement the goal was develop a price
guide a real data-driven view of the
market and four years later we're
analyzing over 25 million transactions
providing real-time analytics on
thousands of sneakers now sneakerheads
check prices while camping out for
releases others have used the data to
validate insurance claims and the top
investment banks in the world now use
resell data to analyze the retail
footwear industry and here's the best
part sneakerheads have sneaker
portfolios
sneakerheads can track the value of
their collection over time compared to
others and have accessed the same
analytics you might your online
brokerage account so sneakerhead Dan
bills his collection and identifies
which 352 are his he can see it's worth
100 $3,000 frankly a modest collection
at the asset level he can see gain loss
by shoe here he's made over six hundred
dollars on one pair I have one of those
so an unregulated 1.2 billion dollar
industry that thrives as much on the
street as it does online and his spawn
fundamental financial services for
sneakers at some point I asked myself
what's really going on in the market and
to comparison started to emerge our
sneakers more like stocks or drugs in
fact one guy emailed to say he thought
his 15 year old son was selling drugs
and later found out he was selling
sneakers and now they use the data to do
it together and that's because sneakers
are an investment opportunity would none
other exists and I don't just mean the
kid selling sneakers headed drugs how
about all kids you have to be 18 to play
the stock market I sold chewing gum in
sixth grade blow pops in ninth grade and
collected baseball cards through high
school but cards are long dead and the
candy market is usually quite local for
a lot of people sneakers no illegal and
accessible investment opportunity a
democratized stock market but also
unregulated which is why the story
you're probably most familiar with is
people killing each other for sneakers
and while that definitely happens and is
tragic it's not near the epidemic some
media would have you believe in fact
it's a very small piece of a much bigger
and better story so sneakers have clear
similarities to both the stock exchange
and the illegal drug trade but perhaps
the most fundamental is the existence of
a central actor someone is making the
rules in the case of sneakers
that someone is Nike let me walk you
through some numbers the resale market
we know is 1.2 billion Nike including
jordan brand accounts for ninety six
percent of all shoes sold on the
secondary market just complete
domination sneakerheads love jordan's
and profit on the secondary market is
about a third that means that sneaker
heads made 380 million dollars selling
Nikes last year let's jump to retail for
a second skechers earlier this year
became the number two footwear brand in
the country surpassing adidas this was a
big deal and in the 12 months ending
june skechers net income was 209 million
dollars that means that Nikes customers
make almost twice as much profit as
their closest competitor that how is
that even possible the sneaker market is
just supply and demand but Nike has
gotten very good at using Supply limited
sneakers and the distribution of those
sneakers to their own benefit so it's
really just supply sneakerheads joke as
long as it's limited and Nike they'll
buy it shoes itself for eight thousand
dollars do so because they're very rare
it's no different than any other
collectible market only this isn't a
market at all it's a false construct
created by Nike ingeniously created by
Nike and the most positive sense to sell
more shoes and in the process has
provided tens of thousands of people
with lifelong passions myself included
if Nike wanted to kill the resale market
they could do so tomorrow all they have
to do is release more shoes but we
certainly don't want them to nor is it
in their best interest that's because
unlike Apple who will sell an iphone to
anyone who wants one nike doesn't make
their money by just selling two hundred
our sneakers they sell millions of shoes
to millions of people for 16 hours and
sneaker heads are the ones that drive
the marketing and the hype and the PR
and the brand cachet and enable Nike to
sell millions
$60 sneakers it's marketing its
marketing the likes of which has never
been seen before this isn't in any
textbook for 15 years Nike has propped
up an artificial commodities market with
a Facebook level hyped IPO every single
weekend try by any foot lacquered 8 a.m.
on a saturday morning and there will be
a line down the street and around the
block and sometimes those kids been
waiting there all week you know those
crazy i phone lines you see on the news
every other year nike lions happen 104
times more often so nike sets the rules
and it do so by controlling supply and
distribution but once a pair leaves a
retail channel it's the Wild West there
are very few if any legal unregulated
markets of this size so Nike is
definitely not the stock exchange in
fact there is no central exchange by
last count there are 48 different online
markets that I know of summer ebay
clones summer mobile markets and then
you have consignment shops in
brick-and-mortar stores and secret
conventions and reseller sites and
Facebook and Instagram and Twitter and
literally anywhere sneakerheads come
into contact with each other shoes will
be bought and sold but that means no
efficiencies no transparency sometimes
not even authenticity can you imagine if
that's how stocks for blood what if the
way to buy a share of apple stock was to
search over 100 places online and off
including every time you walk down the
street just hoping that past someone
wearing some apple stuff never knowing
who had the best price or even if the
stock you were looking at was real that
would surely make you say of course
that's not how we buy stock but what if
that's not how we to buy sneakers either
what if the inverse is true and what if
we could buy sneakers exactly the same
way as we buy stock and what if it
wasn't just sneakers to us any similar
product like watches and handbags and
women's shoes and any collectible any
seasonal item and any marked down item
what if there was a stock market for
merce a stock market of things and not
only could you buy in a much more
educated and efficient manner but you
can engage in all the sophisticated
financial transactions you can with the
stock market shorts and options and
futures and well maybe you see where
this is going maybe you want to invest
in a stock market of things because if
you had invested in a pair of air jordan
3 black cement in 2011 you could either
be wearing them on stage where Vern 162
percent on your money double the SP and
twenty percent more than apple and
that's why we're talking about sneakers
thank you
Browse More Related Video
5.0 / 5 (0 votes)