A Taste of the Niche that is the Sneaker Culture
Air Jordan sneakers are one of the most iconic shoes in history, worn and referenced by some of the biggest celebrities and artists, and even have had songs written about them like Drake and Future’s song “Jumpman”. Referencing the infamous silhouette logo design of Michael Jordan dunking from the free throw line. If for some reason you have been living under a rock and have not heard of the Jordan brand, chances are you have definitely seen that Jumpman logo.
Air Jordan “Jumpman” Logo
When I was a kid, all I wanted to own is a pair of Air Jordan sneakers. But, My parents would never buy me a shoe that cost more than $80.00. So, the second I received my first paycheck I went straight to Foot Locker to buy a pair of Air Jordan 1’s. Ever since then, I have slowly evolved into a “Sneakerhead”. A Sneakerhead is a person who collects trades and/or admires sneakers as a form of hobby.
Within the millennial generation, we are seeing more innovative ways to make money than ever before. To get a job, you have to be 16 years old at least. To play the Stock Market, you have to be 18 years old.
Nike is single handedly giving sneaker heads ranging from 12 years old to over 30 years old the opportunity to become a CEO of their own reselling business. Kids who love sneakers and are too young to have a job or play the Stock Market are using this culture as their primary source of income!
When Apple releases a brand new product, customers will camp outside of the Apple store for days before it releases. This happens every single Saturday when Nike releases a new shoe. Hundreds of Sneakerheads will wait outside of Foot Lockers for days just to get a pair of sneakers.
“You know those crazy iPhone lines you see every other year? Nike lines happen 104 times more often.” – Josh Luber
Josh Luber is Founder and CEO of campless.com. Their goal at Campless is collect and analyze the data of the Sneaker Market, and give it to their customers! They do this so people can make smarter decisions about their sneaker investments.
What’s the big deal, these are just shoes, right?
Investments. Many of these Sneakerheads have evolved into resellers. Resellers will often buy limited addition shoes for retail price which can range between $170.00 – $220.00, and then sell them for a higher price on places like eBay. This created a “Sneaker Market” that is more stable than the Stock Exchange. As long as Nike builds the hype, the Sneaker Market will thrive.
“Sneakers are an investment opportunity when none other exists.” – Josh Luber
Within the millennial generation, we are seeing more innovative ways to make money than ever before. To get a job, you have to be 16 years old at least. To play the Stock Market, you have to be 18 years old.
Nike is single handedly giving sneaker heads ranging from 12 years old to over 30 years old the opportunity to become a CEO of their own reselling business. Kids who love sneakers and are too young to have a job or play the Stock Market are using this culture as their primary source of income!
Josh Luber, the founder of campless.com, created a data analysis system for sneaker. Kind of like a Stock Market for shoes, and eventually all commerce.
How big is this market?
As seen in Josh Luber’s TED Talk, last year, sneaker resellers made $380 million dollars in profit. Sketchers, the second highest grossing sneaker company in country, made $208 million dollars last year. This means that Nike’s customers made almost twice as much as Nike’s competitor. Nike has unintentionally birthed an economy that some individuals support their families with.
In 2011, the last time the Air Jordan retro 3 “Black Cement” was released, it was sold out within minutes of the release. The retail price of this rare shoe was $160 dollars. Minutes after this shoe sold out, it was found on eBay for 2 or 3 times the retail price. Some sneakers, like the Nike Air Mag Back to the Future’s, have sold from $6,000- $16,000 dollars!
As seen in the illustrations above, what if you got back 165% of your investment back and the worst case scenario was breaking even? The resale market is $1.2 Billion with a profit of $380 Million last year, that’s almost twice as much as Nike’s competitor who made $209 Million last year. Nike’s customers are making almost twice as much as their competitors!
Josh Luber, founder of Campless.com
As Josh Luber asks, “What if we use this sneaker market as an example for all commerce?”
That is definitely something to think about! Are you rethinking your investment choices yet?
For more information, visit Josh Luber’s TED Talk here, in addition to campless.com.
