According to specialist reseller StockX, young consumers who were able to save money during the pandemic lockdowns are now investing their savings into the sneaker resale market. Rather than viewing sneakers solely as fashion items, young people are seeing them as profitable investments. In the UK, sneakers and other collectibles have become a highly profitable alternative asset, as items that were once kept for sentimental reasons are now being sold at significant profits.
StockX conducted research among 2,000 sneaker buyers on behalf of Harris Poll and discovered that over a third of the respondents were motivated to make their purchases based on the potential investment return. Specifically, 36% of the buyers considered the future worth or investment value of the sneakers when making their purchases.
Furthermore, StockX noted that certain sneakers, like Air Jordan 4s, have shown less volatility compared to traditional stock indexes such as FTSE 100 and S&P 500, and have consistently appreciated over time. For example, Air Jordan 4 sneakers have experienced 100% growth over a 12-month period. On average, an investor who owns 10 pairs of top-selling Jordan 4s would have gained £1,416, highlighting the profitability of investing in limited edition sneakers.
StockX attributed the growing appeal of sneaker investments among young consumers to the perception that traditional stocks and shares are more complex and challenging to understand. Limited edition sneaker releases from popular brands like Nike, Adidas Yeezy, and Jordan Brand have created scarcity, driving up demand and increasing the investment value of these highly sought-after items.
In conclusion, young consumers are redirecting their pandemic savings into the sneaker resale market, viewing sneakers as profitable investments rather than just fashion items. Limited edition sneakers have shown consistent appreciation in value, attracting investors who find traditional investments more complex. This trend highlights the growing popularity of sneakers as a profitable alternative asset.
