The sneaker resale market goes on clearance

The Future. The sneaker resale market is in a tailspin because the value of their hottest shoes have dropped. While sneakerheads-turned-investors may not be able to box up the profits they once did during the height of COVID, the falling valuations may not be a phenomenon that brands themselves are too worried about… instead giving them an opportunity to redefine how they drive revenue through exclusivity.

Scarcity shock
More is not necessarily merrier when it comes to the sneaker resale market.

• Demand for limited-edition Nikes, Air Jordans, and Adidas went into overdrive over the past decade, which led the companies to increase production.
• But now there are too many of the once “rare” shoes, so their value has dropped, and resale prices for special Dunks and Sambas have crashed to, shudder, retail price levels.
• This has sent shockwaves throughout the resale industry — large European platforms like Restocks and Kikikickz went bankrupt, and giants like StockX and GOAT have had to diversify their offerings.

But there are some bright spots — truly rare collectibles (called “grails”) still understandably do big business on resale sites, and the booming popularity of sportstyle sneakers (think Hoka, On, Salomon, and Merrell) are giving customers new footwear to get excited about.