This Kid in USA is making Millions with his Sneakers Obsession
Benjamin Kapelushnik,?16 year old boy from USA used to pay a person $50-60 to stay all night outside Nike’s showroom whenever a new collection was releasing?
Now some may call this a rich brat obsession, but this kid had a vision?
He sourced the limited edition sneakers at MRP and later resold it for?3x to 4x the price he paid for them. In just a few months, he had made a profit of over $10,000.
He knew that limited-edition sneakers could sell for much higher prices on eBay than they did in stores, so he decided to start buying them up and reselling them online.
By having his friends stay all night in the store, he could guarantee that he would be one of the first people to get his hands on the hottest sneakers.
Some people might say that Benjamin was just a rich kid with an expensive hobby. But Benjamin saw himself as an entrepreneur. He had a vision for how he could make money by reselling sneakers, and he was willing to put in the hard work to make it happen.
Sneaker Business- Should one get into it??
So, you’ve heard about sneaker reselling business and you’re wondering what all the fuss is about.?
First up, let’s talk about market trends and demand.?
Global Sneakers Resale Market?was estimated at $10.6 Billion in 2022 and shall reach a revenue of $51.2 Billion by 2032, growing at a CAGR of 16.4% during the forecast period of 2023 to 2032.?
Sneaker culture has exploded in recent years, with people going crazy over limited edition releases. The demand for exclusive kicks is off the charts, and sneakerheads are willing to pay top dollar to get their hands on them. This is where sneaker resale market places come into picture. These online marketplaces have become the go-to destination for sneakerheads looking to buy and sell their prized possessions. Platforms like?StockX,?GOAT, and?Grailed?have taken the sneaker game to a whole new level. It’s like eBay, but instead of bidding on baseball cards and vintage toys, you’re bidding on sneakers that could potentially make you a small fortune when you sell them later.?
Profit Margins
Ah, profit margins and price fluctuations, the bread and butter of sneaker reselling. This is where the money is made. You see, when a limited edition sneaker drops, the initial retail price is usually lower than what the market is willing to pay. Sneaker resellers swoop in, buy up as many pairs as they can, and then sell them at a higher price. It’s all about supply and demand, and if you can navigate the sneaker market like a pro, you’ll be laughing all the way to the bank.?
There are also times when celebrities are spotted wearing some brand’s sneakers and the prices of those designs shoot up.??For instance, New Balance 550 went viral after a few celebrities like Hayley Beiber and Kylie Jenner were spotted wearing it.?According to?StockX’s January 2023 Big Facts report, New Balance sales are up more than 100 percent year over year, thanks in large part to the popularity of the 550 sneaker. It’s currently the top-traded New Balance style on the site, outranking other Bieber-approved silhouettes like the 2002R and 530.
Challenges in Sneaker Resale Business?
But of course, sneaker reselling isn’t all sunshine and rainbows. There are challenges and controversies along the way.
Counterfeit Sneakers:?With so many cheap first copies of limited edition sneakers available in the market, the demand of original sneakers goes down. But true sneakerheads rarely care. Buying first copy footwear is like buying a Ferrari with a lawnmower engine.?It’s just not the same. That’s why authentication is crucial in this business.?
Legality of the business:?Sneaker reselling has never been seen as a noble profession. Some argue that it encourages consumerism and inflates prices. It’s like walking a tightrope between legality and the wild wild west of the market. Also, let’s not forget the age-old debate about ethics and fairness. Some people feel that sneaker resellers are stealing shoes from true sneakerheads. It’s like taking candy from a baby. Except in this case, the candy is a limited edition Yeezy and the baby is a sneakerhead who’s been camping outside the store for three days. Is it fair to swoop in and grab that sweet pair just to make a quick buck? So is it fair to swoop in and grab a pair to make a quick buck?
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Sneaker Resale Business in India
The sneaker market in India has started booming in recent years. As per market and consumer data experts Statista, the Indian sneakers market revenue is $2.60 billion in 2022, and the market is expected to grow annually by 11.58 percent. The catch in this is that a major chunk of money generated doesn’t come from retail business, but from sneaker reselling business. Danish Chawla, founder of Find Your Kicks India said, “Brands announce their launches at a fixed time. Nike, for instance, drops its collection at 7.30 am IST and the entire collection is sold out within a minute. Sometimes, collections also sell out in less than 10 seconds. This is when marketplaces like us get in touch with resellers and stock up the limited edition pairs for sneakerheads.”??
At present there are only 2-3 major sneaker marketplaces in India, like VegNonVeg and Superkicks. Two-three years back, instagram saw a boom of sneaker marketplaces in India. This is when marketplaces like VegNonVeg come into picture. They organise a formal marketplace and start categorising each style as per size, style, and availability.?
Celebrities in the Indian entertainment industry have also embraced the sneaker culture. Ranveer Singh showcased his style at the NBA All-star game by donning the Adidas Dame 8 sneakers. For the promotions of “Badhaai Do,” RajKummar Rao opted for a timeless and classic look, pairing a varsity jacket with the Nike Air Jordan 1 Retro High Sneakers. These sneakers feature distinctive light blue panels and the iconic high-top silhouette, originally introduced by Michael Jordan in 1985.
In a recent airport appearance, Badshaah stood out by wearing a limited edition Just Cavalli sneaker.?
How can one start Sneaker Business in India
Embarking on the journey of sneaker reselling can be both exciting and financially rewarding. Below we provide you with valuable insights and strategies to navigate the world of sneaker reselling effectively.
Getting Your Hands on the Goods: Acquiring limited-edition sneakers requires a strategic approach and a willingness to explore different methods.
How to make the Business Profitable
Once you’ve secured rare and hyped releases, it’s time to monetize your efforts by selling them to eager buyers.
Crossing Boundaries: Non-Fashion Brands Tap into India’s Sneaker Culture
Brands that are not in the fashion space have also taken interest in the segment due to growing hype of the community. Last year, Tinder released a limited edition capsule collection with Fila, hand illustrated by artists across India, highlighting the theme of identity, authenticity, and diversity. Sneakers as one of the interests also grew by 2.5X in 2021 on Tinder, which is a clear testament of Gen-Z’s affinity towards sneaker fandom.?
Way Forward
In conclusion, diving into the world of sneaker reselling as a business can be both a thrilling and lucrative journey. As we’ve explored throughout this blog, the sneaker resale market is dynamic and constantly evolving, offering a unique blend of fashion, culture, and entrepreneurship. By following the steps outlined and embracing the key considerations, you can position yourself for success in this exciting industry.