Luxury Sneakers, Streetwear, & Modern Collectibles?—?A Report on Auction House Dynamics in an Evolving Space

Two years ago I took a heightened interest in the intersection of Fashion, Art, Sports and Culture, diving into the worlds of the people, brands, and organizations that produce creative works that have shaped the aesthetic of our lives. Nothing fascinated me more than the world of sneakers, streetwear, and modern collectibles.

Growing up in Memphis as a collector, I amassed an outstanding collection. I sold candy at school to buy Air Jordans and acquired NBA players’ game-worn shoes at Grizzlies games. My Dad and I frequented garage sales and sports memorabilia stores for trading cards, magazines, bobbleheads and everything in between. Streetwear in Memphis (by the way, that wasn’t a term; they were just our clothes) was driven by brands Nike, Dickies, and Mitchell & Ness. Growing up enthralled with sneakers, streetwear, and collectibles provided the nostalgic momentum to power my curiosity and research.

The overlap between luxury and streetwear has proliferated in recent years through the growth and exploration of popular fashion brands like Supreme, Kith, Louis Vuitton, and Aime Leon Dore to name a few. But the culture has always incorporated luxury and exclusivity into the streetwear landscape. Even during the 90s and 2000s in Memphis there was an upper echelon as we wove together limited edition Air Jordans, Ralph Lauren, Girbaud Jeans, and jewelry. Over the last two decades, sneakers and streetwear items have evolved from trendy fads to valuable assets, perceived as pieces of art with equity-provoking value that should be preserved, not just worn.

Some of the globe’s most historic luxury auction houses have taken notice, launching campaigns and departments to serve a new legion of collectors. It turns out that sneakers and streetwear are not only reserved for the Hypebeasts and Footlocker phenoms. They have attracted the eyes and wallets of some of the world’s wealthiest people, and it’s only gaining momentum.

This report compiles my observations of stakeholders, trends, and potential disruption that I’ve compiled from dedicated research, international travel, and interviews in relation to the luxury sneakers and streetwear market. This nascent market offers an exciting opportunity for legacy auction houses to attract younger buyers and further diversify lot offerings and simulteneously craves innovation and differentiation, a gap that budding competitors could exploit to disrupt the industry overall.

Luxury Auction Houses Jumped?In

The art auction industry is touted as one of the most luxurious and profitable in the world, anticipated to reach over $38 billion in revenue in 2024, at a CAGR of over 3% during the forecast period. Here’s a breakdown of the top 5 auction houses and their 2023 sales.1?

Christie’s (ESTD 1766) and Sotheby’s (ESTD 1744) have historically competed for the top spot as auction houses, playing pivotal roles in the development and expansion of the global art market via auctions hosted for a wide range of collectibles including fine art, antiques, and jewelry. As their attention expands into sneakers and streetwear, their competitive jockeying continues for who will claim and sustain the lead. The same is happening as they turn their attention to streetwear.

But why are auction houses jumping in? I interviewed the UK’s King of Trainers, Franklin Boateng.

“Sneakers have become a commodity?—?a real precious item. Even though it is still just glue and rubber, sneakers are now art. So it’s natural they’re gonna be jumping in."

Millennials and Generation Z are increasingly becoming a significant demographic in the luxury auction market, particularly spending on handbags, streetwear, and spirits. For context, by 2026 Millennials and Generation Z are expected to account for 75% of luxury goods buyers.2 As auction houses incorporate sneakers and streetwear into their offerings, they differentiate themselves by focusing on limited-edition, vintage, game-worn, and autographed items that stand out as iconic pieces.

Christie’s Overcomes Drama

Christie’s entered the market in September 2022 with the launch of Department X dedicated to housing sneakers, streetwear and collectibles across music, fashion, and sports history.3

“We‘ve watched the classic luxury departments start incorporating these elements of sneaker culture and streetwear through the leadership and the guidance of people like Virgil Abloh and Kim Jones who have come into these really storied, iconic fashion houses and brought in this influence,” stated department head Caitlin Donovan.

Donovan noticed an increasing interest among Christie’s clients in luxury streetwear and sneakers over the years, citing the department’s importance to attract serious and educated new and younger clients. Department X planned its launch event Ye Walks as a private sale of Kanye West’s rare Nike Air Yeezy 1 Prototype, but after West faced backlash from antisemitic comments, the lot was pulled, stunting Christie’s momentum in the space.??

While Department X appears to now be defunct, Christie’s maintains a Sneakers, Streetwear & Collectibles division. In 2022, the division achieved unprecedented sales, highlighting the intense enthusiasm collectors have for these unique collectibles. Michael Jordan Upper Deck Signed Rookie Card from 1986 sold at auction for over $1 million and a pair of Jordan XIIIs worn and signed by Michael Jordan during the 1997–1998 season fetched $378,000.? Christie’s Sneakers, Streetwear & Collectibles auction lots have amassed nearly $6M in sales.?

Sotheby’s Dominates

While Christie’s has overcome setbacks, competitor Sotheby’s has undoubtedly been the behemoth in sneakers and streetwear. Sotheby’s has hosted luxury’s most prominent lots featuring highly-sought after items from Air Jordan, Supreme, and Virgil Abloh’s Nike x Louis Vuitton creations.

In September 2022, Sotheby’s set a record with Michael Jordan’s 1998 NBA Finals jersey selling for $10.1M, marking the highest auction price for a game-used sports item ever. Other significant sales include Maradona’s ‘Hand of God’ shirt at $9.3M, Kobe Bryant’s MVP season jersey at $5.8M, LeBron James’ NBA Finals game jersey at $3.6M, and the earliest known game-worn Nikes by Jordan at $1.5M.?

In February 2024, Sotheby’s auctioned the most impressive sneaker lot to date dubbed The Dynasty Collection?—?a set of 6 individual Air Jordan sneakers?—?each one worn by Michael Jordan in the clinching games of his 6 career NBA championships?—?and autographed!? This set represents the most valuable and significant collection of Air Jordan sneakers ever brought to market, and sold for a whopping $8 million to an anonymous buyer.

Sotheby’s makes its commitment to sneakers and streetwear prominent as its website features a Buy Now marketplace of recent shoes releases akin to reselling marketplaces like StockX and GOAT. They even maintain an instagram account solely dedicated to sneakers.?

They further reinforced their dominance in the space in November 2023, announcing a partnership with the National Basketball Association (NBA), making Sotheby’s the Official Game-Worn source of the NBA. The multi-year partnership allows fans to purchase a wide-range of iconic game-worn NBA memorabilia.

Other Players Are Catching?Up

Although not as invested as Christie’s and Sotheby’s, other well-established auction houses (Heritage Auctions, Phllips, and Bonhams) have signaled interest in entering the luxury streetwear space. Heritage Auctions appointed a Sneakers consignment director in 2022 and currently hosts a respectable number of sneaker auctions online.1? In 2019, Phillips presented a Hong Kong exhibition entitled Tongue + Chic, bringing together an exciting selection of one-of-a-kind sneakers designed by the most influential contemporary artists, such as KAWS, Damien Hirst, Dave White, Swizz Beatz, Dr. Woo, and Pyer Moss.11 There is no evidence that Bonhams has dedicated resources to this area yet.

Now Is Luxury’s Time?—?The Rich Stay?Rich

The secondary market for sold-out sneakers has always existed. In Memphis it was controlled by those with direct access to inventory like employees at Nike, Footlocker, and Finish Line?—?or the guys who robbed railcars at the trainyard. People paid premiums for pre-released Jordans or ones that sold out in stores. However, the evolution of the internet has legitimized the secondary market for sneakers, creating a new crop of entrepreneurs?—?resellers.

Resellers initially dominated with margins great enough to operate seven to eight figure businesses by continuously selling into an insatiable consumer base. But the sneaker resale market has cooled significantly in recent years and resale platforms like StockX, eBay, and GOAT are left scrambling to pivot their businesses accordingly. Retail price increases, oversupply of once-hyped sneakers, crack down on bots, and more reseller competition have collectively contributed to a noticeable decline in sneaker resale activity.12

For example, the rise of StockX empowered buyers to set the price of footwear assets and eliminated the obscurity that resellers once took advantage of. StockX empowers anyone at any time to be a reseller. The barrier to entry is nonexistent, forcing larger established resellers to conform to the expectations of the everyday buyer.

Additionally, consumers simply aren’t buying shoes like they used to. In 2020, buyers, flush with stimulus and unemployment checks post lockdown, were spending lavishly on discretionary goods like sneakers. Now inflation is high and the well is drying up. In 2022, Chris Burns, a sneaker analyst and the founder of Arch-USA, tracked e-Bay’s Black Friday sales and found a decline of 31.6% on all athletic shoes, including Jordans, versus the prior year, with the average selling price down by 16.2%.13

“There is a bit of a downturn now, but the people at the high end are always going to buy high-end. One of Michael Jordan’s pairs went for over a million. There are still buyers in the market that buy these very very expensive pairs”.?—?Franklin Boateng

As Boateng notes, luxury auction houses now have an opportunity to plant their flag in the ground and cement it by exploiting the distinct differences that set them apart from the popular streetwear marketplaces.

Firstly, luxury auction houses are curating and offering items with significant provenance and rarity, focusing on vintage and limited-edition pieces. Secondly, they cater to the highest economic echelon of clientele, often including traditional collectors and those interested in unique and historically significant items. Lastly, the experience of participating in a luxury auction, whether online or in-person, differs significantly from the more transactional nature of platforms like StockX and eBay.

“We consigned a pair of trainers to Sotheby’s. The unique experience is that it was put in a large exhibition. Sotheby’s has a list of people who would buy shoes for a large sum so it opens up the sneakers to a larger demographic of collectors worldwide. It’s definitely worth doing. Good experience,” said Boateng.

With chatter from traditional platforms quieting, auction houses should get louder about their premium offerings to replicate Boateng’s experience. The Sotheby’s and Christie’s of the world won’t replace Stock X and eBay at scale and don’t need to because they’re different. As analogy, the auction houses are Purple Label while online marketplaces are Polo?—?both Ralph Lauren but catering to different audiences. Nonetheless, right now is the auction houses’ window to dominate headlines and capture the community’s attention. They cater to a recession-proof demographic and have the space to make noise in a quiet room.

Convergence & Opportunity

While it’s exciting to see auction houses investing more into sneakers and streetwear, the focus of their offerings can be predictable. While most pieces are unique they primarily converge around the same brands: Nike, Air Jordan, Supreme, and Louis Vuitton; and feature familiar names like Michael Jordan, LeBron James, Kobe Bryant, and Virgil Abloh. Previously Yeezy and Kanye West were also in the mix.

Don’t get it twisted?—?It works! Well! These brands, players, and creatives have proven that their memorabilia and artifacts have unquenchable demand whose growth exceeds the rate of inflation. But as the industry seeks to grow, it begs the question?—?what other pieces will drive capitalization besides rare Air Jordans and Virgil Abloh’s creations?

Virgil Now and Next?Up

Perhaps nothing has intrigued me more than Virgil Abloh’s impact on the auction industry. His Off-White x Nike and Louis Vuitton x Nike creations are staples among the auction houses. They tend to be paired alongside Supreme lots, an understandable association given Supreme’s historic collaboration with Louis Vuitton. The pieces seamlessly complement each other as hypebeast staples that are always going to attract eyes and draw in dollars.

Other than Ye, Virgil deviates from industry norms in that he’s not an athlete. While most lots are driven by Hall-of-Famers, Virgil’s are driven by quality, design, and aesthetic. In 2017 Virgil released “The Ten”, a collection that consists of ten iconic silhouettes from the Nike, Jordan, and Converse archives, ranging from $110 to $250 per shoe. In April 2022, Sotheby’s auctioned them in a lot that went for $35,000. In 2022, Sotheby’s also hosted 200 pairs of Virgil’s Nike x Louis Vuitton Air Force 1 & Pilot Case with most selling for over $100,000. Of course, Virgil’s untimely passing in November 2021 played a role in the collections’ popularity, but his popularity highlights the lucrative potential that streetwear creatives can have in the auction industry.

One expects to see the latest trends in the fashion capitals like New York City, London, and Paris, but I believe a brand’s true reach and value is encapsulated when it can also be found on the streets of places like Stockholm, Memphis, and Dakar as well. Lower tier markets reveal brands’ true reach. Auction houses have yet to show the willingness to tap into other revolutionary brands or prospect up-and-coming creatives in the streetwear space.

Auction houses’ mirrored convergence may suggest an inability or unwillingness to uncover other compelling brands and forecast innovative talent. Ironically, foregoing new inventiveness might not be an issue given that their traditional business model is taking “old” things and auctioning them at a “new” valuation. Nonetheless, highlighting contemporary creatives could present an opportunity for disruption and differentiation in the industry if someone is able to fill the gap.

Over the past few years, traveling throughout the United States, Europe, and West Africa has allowed me to closely observe streetwear titans, both current and historical. It has expanded my awareness, allowing me to see beyond the obvious brands and a look giving me glimpses into what, or who is next.

Potential Disruption

If you had to identify one person at the nexus of sneakers, streetwear, and creativity, poised to usher in the next frontier of culture-shifting design and style, you need look no further than visionary Pharrell Williams.

Originally known in the music industry as a prominent singer, songwriter, producer, and musician, Williams also co-founded streetwear brands Billionaire Boys Club and Ice Cream, collaborated with Adidas on a range of footwear and apparel, and designed a capsule collection with luxury house Chanel. Additionally, Pharrell launched Humanrace, a skincare brand, further diversifying his portfolio across fashion, music, and wellness industries.

He now holds one of fashion’s most coveted positions as the Men’s Creative Director at Louis Vuitton, a position previously held by none other than the late Virgil Abloh.

Oh, and he owns an auction house?—?Joopiter.

Founded in 2022, Joopiter is a global digital-first auction house that curates rare cultural artifacts by highlighting the stories behind them. Joopiter endeavors to appeal to the budding new collector and seasoned collectors alike.

Securing investment from Lightspeed Ventures, Joopiter has attracted top talent from the worlds of luxury, art, and design?—?including Christie’s former Department X lead Caitlin Donovan?. And they aren’t bashful. One peak at their website and one perceives the lane they are carving out in luxury auctioning?—?bold yet minimal and modern?—?a distinct juxtaposition against the classic, dated brands of the traditional houses. They take an intentional and artistic approach to storytelling, product positioning, and the digital experience. Comparing Joopiter’s Instagram to the pages of other auction houses’ parallel departments makes the difference clear.

Pharrell’s team is able to to generate resonating content for Joopter’s lots because he’s had a hand in crafting the culture that molds the artifacts. Between the brands he’s created and his vast network of celebrity friends, Pharell has a large enough reach to fill an auction himself. In fact, that’s what he’s doing. In June 2023, he partnered with Sarah Andelman to curate auction lot “Just Phriends’’ which brought together artists he worked with regularly like Takashi Murakami, Kaws, Daniel Arsham, Michael Kagan, FriendswithYou, and brands like Chanel and Louis Vuitton.

What Joopiter lacks in history, they make up for in access and appeal. Pharrell’s ability to effortlessly pull from his well of legendary streetwear artistry to craft one-of-a-kind offerings is a competitive moat that other auction houses can’t cross because Pharell Williams can’t be replicated. With adequate funding, a proven team, and Pharell’s cultural impact, Joopiter has the potential to upend traditional auction houses’ efforts in the sneakers and streetwear market while gaining market share in other prominent auction categories to become a contending competitor.

My Take on What’s?Next

Heritage Auctions, Phllips, and Bonhams Invest?More

Sneakers and streetwear auctions not only present another revenue stream for auction houses, they attract new, young buyers to the ecosystem while giving established collectors a fresh avenue to explore. Although these three auction houses are smaller than Christie’s and Sotheby’s, they’ll strive to keep up with innovation and evolution, which means investing to compete in this category.

Legacy Alone Won’t be?Enough

Many people are drawn to the longstanding histories and traditions of luxury auction houses. For example, given the same item, collectors would likely rather buy from Sotheby’s than StockX because Sotheby’s legacy provokes trust and their aura is facilitated by an unrivaled luxurious experience. In fact, the experience alone is worth the cost for many. However, I don’t think legacy is enough for auction houses to maintain their market share going forward. They’ll need social observers on the ground across the globe who are intimately tapped into sports, music, and streetwear culture to continuously identify trends, form new partnerships, and tell engaging stories. Their inability to do so opens the door for newcomers like Joopiter to step in and win.

Sotheby’s Continues to Crush?It

Sotheby’s seems to be a massive snowball that’s only getting bigger rolling down an endless mountainside. Their velocity is irrefutable. Between the Dynasty collection lot, Buy Now marketplace, and NBA Game-Worn partnership, they’ve shown the ability to provide collectors access to artifacts from the past, present, and future, solidifying them as the premiere destination for sneakers, streetwear, and modern collectibles in the industry. Their early investment to lean into this new segment is paying off, and they’ll continue to dominate for the foreseeable future as long as they keep innovating in the space.

Joopiter Grows Exponentially this Decade, Physical?Space

Joopiter will gain significant market share by appealing to new collectors and curating unique culture-shifting lots. A portion of their proceeds go to benefit Black Ambition, a set of grants to fund bold ideas and companies led by Black and Hispanic entrepreneurs. This will appeal to younger consumers who appreciate social-good initiatives.

Pharell will continue to lean on his unique ability to tap his personal relationships to curate lots of modern collectivities that no one else in the industry has access to. He will benefit from his evolving prominence in the culture. His current role at Louis Vuitton will pay dividends for Joopiter even when he moves on because it’s a direct association with a beloved luxury brand. If they want to compete with the fab five auction houses Joopiter has to increase its exposure to traditional collectors and lots, and Pharell’s Louis Vuitton stamp is the perfect social funnel to conduct that engagement.

Experience is the new luxury, and people will pay a premium for it. The fab five auction houses are able to capitalize on this with lavish showrooms and in-person auctions that physically bring collectors into their ecosystem. While Joopiter is poised to compete, opening a permanent physical space will catapult their status by giving them the opportunity to build their own unique in person experience.

Christie’s Acquires?Joopiter

Christie’s has a longstanding rivalry with Sotheby’s as they’ve traded positioning for the number one spot throughout their storied histories. However, Sotheby’s is clearly ahead in this new vertical. Christie’s unfortunate Department X debacle threw a wrench in their momentum and Sotheby’s seems to have taken advantage of the blunder, creating a sizable lead. Although we are still in the infancy stages of the luxury sneakers, streetwear, and collectibles space, Christie’s should be wary not to fall too far behind.

Joopiter is developing the team, offerings, and partnerships to compete in the space and differentiate itself. I think we could see Christie’s investment arm, Christie’s Ventures, make a strategic investment into Joopiter in the next 18–24 months and eventually acquire the company outright in the next 5–7 years.

Closing Remarks

It’s important to note that sneakers, streetwear, and modern collectibles is still a very nascent vertical in the luxury auction industry. Nothing is set in stone regardless of who has the most momentum right now or who isn’t competing yet. Even the dedicated departments are only a few years old. For context the oldest prominent auction house of the fab five was founded 279 years ago, and the most recent one launched 47 years ago. This report is a snapshot of right now and my predictions on the next 5–7 years. Dynamics will inevitably change over time.

On a personal note, In many ways I’m fascinated that sneakers, streetwear, and collectibles have reached this point. This vertical is molded by influences that shaped my life like sports, hip hop/rap, and street fashion. As a kid in Memphis buying and saving Air Jordans, getting autographed memorabilia at Grizzlies games, and shopping for unique clothing pieces, I just did it because of my love for sport and style. Never did I think some of my items could one day be housed in a lot at a prestigious auction house. But here we are.

I hope that you enjoyed this report. Thank you for reading.

[1]: Global Newswire. Research and Markets. (Nov 20 2019). Art Auction Market?—?Global Outlook and Forecast 2019–2024

[2]: Fashion Network. (Jul 21 2023). Millennials and Generation Z are a driving force in the luxury goods market

[3]: CPP LUXURY. (Sep 27 2022). Research and Markets. Christie’s launches Department X for streetwear and sneakers

[4]: ARTnews. (Nov 1 2022). Christie’s Newly Launched Streetwear and Sneakers Division Already Faces an Uncertain Future

[5]: Christie’s. (n/a). Sneakers, Streetwear & Collectibles

[6]: Christie’s. (n/a). Sneakers, Streetwear & Collectibles

[7]: Sotheby’s. (n/a). Sneakers, Sports Memorabilia & Modern Collectibles Overview

[8]: Sotheby’s. (2023). The Dynasty Collection: The Complete Set of Michael Jordan’s ‘Air Jordan’ Six Championship Sneakers

[9]: Sotheby’s. (Nov 14 2023). Sotheby’s Is Now the Official Game-Worn Source of the NBA

[10]: Antique Trader. (Aug 24 2022). Heritage Auctions Leaps Into Collectible Sneakers Market

[11]: The Value. (Oct 21 2019). Phillips’ Sneaker Exhibition Features Special Shoes Designed by Leading Contemporary Artists

[12]: Business of Fashion. (Feb 15 2024). The Sneaker Resale Market Is Broken

[13]: Business Insider. (Jan 24 2023). It’s a terrible time to be a sneaker reseller