Resold shoes are a $1 billion industry

Discussion in 'Chit Chat' started by dealmaker, Jun 27, 2019.

  1. dealmaker

    dealmaker

    Resold shoes are a $1 billion industry
    Detroit-based StockX -- a “stock market for shoes” -- raised $110m at a $1B valuation, according to The New York Times.

    As one analyst told the NYT: “The internet and eBay made reselling into a cottage industry. Platforms like StockX made it into a business.”

    A tool for investors

    StockX’s marketplace is a resale platform for rare shoes -- many of which have never been worn -- and other merchandise.

    Sneaker connoisseurs consider shoes as investments, and StockX is proving their point.

    The shoes -- as well as other available items like streetwear and watches -- are assigned stock tickers. Bidding customers see recent sale prices, volatility, and a 52-week high and low.

    Legacy brands could get involved

    StockX is one of several shoe marketplaces: Rival resale sites like GOAT Group, Stadium Goods and Bump have also received millions in funding.

    Insiders expect brands may eventually intervene to find a way for themselves to better benefit from resale.

    But for now, the marketplaces are cashing in. So are sneakerheads -- some of whom make $250K annually (off $1 million in shoe sales) and even employ assistants.
     
  2. mlawson71

    mlawson71

    People figure out how to make money out of everything.
     
  3. Amun Ra

    Amun Ra

    Just a money grab from venture capital investors with a sever case of FOMO. I doubt this sneaker company even breaks even.

    I can already imagine the pitch.

    "Ok guys, I need $100 million dollars for my company. Basically, its a complete rip off of Ebay, but instead of letting people sell everything on our platform, we're only going to let them sell used shoes! Who's in?"

    Venture capitalists -

    [​IMG]
     
    mlawson71 and Clubber Lang like this.
  4. mlawson71

    mlawson71

    That's probably what happened, I agree. :D
     
  5. I agree that people are very fond of discounts and promotions and don't miss such offers.
     
  6. So I want to use this knowledge to create my own business based on tempting promotions. I think, if I open a store and set daily discounts on various products, then this store will be a success. I admit that sometimes I can't get past such offers myself. For example, there is an online store https://seven.deals/deals that always tempts me with discounts. But I plan to come up with some business that will bring me passive income. And I already know that discounts and promotions rule the world, so I will need to pay close attention to this.
     
    Last edited: Mar 27, 2020
  7. mlawson71

    mlawson71

    I don't know how well new businesses will fare in the current circumstances.