Proof of provenance could help to secure trust and prices of ‘second-hand’ sneakers

Source: Nike

Believe it or not, just in the USA this year, the market size for second-hand training shoes (or as the Americans call them, ‘sneakers’) is $2 billion and expected to grow to $6 billion by 2025 according The New York Times. For investors who want to ‘keep a foot in both camps’ (sorry I could not resist that), sneakers are becoming an alternative asset class, with the FT reporting people earning up to £4,000 per month trading in sneakers. This has led to a number of platforms/exchanges being established where one can trade sneakers, which includes Stadium Goods (which was bought in 2018 for $250 million) Grailed, raised $15 million. Goat had $100 million invested into it from Foot Locker and earlier this year, StockX had $110 million investment , which increased its valuation to over $1 billion. Even more importantly, how do sneaker manufacturers stand out from their rivals, as the global market in 2018 was $55billion and expected to grow to $88 billion by 2024, so competition is ferocious? However, if you are going to buy a pair of sneakers for $1milllion, yes $1million, you had better be certain that you are not buying a fake pair!

Nike, the biggest seller of sneakers and with sales of over $22billion p.a., is constantly on the lookout for new ways in which to attract customers and sell high-margin…