The rare and vintage sneaker resale market has exploded from stored-away shoeboxes to become a global multi-billion euro industry, with designers, tastemakers, musicians and corporate behemoths all jostling to buy and sell their soles.
ADVERTISEMENTIn July 2019, international auction house Sotheby’s – established in 1744 as the world’s premier destination for art and luxury – registered its first ever sale of sports shoes.
The hammer went down on a pair of Nike ‘Moon Shoes’ at the then unheard-of price of $437,000 (€395,802), nearly tripling their expected sale price of $150,000 (€135,859).
At the time, the Sotheby’s ‘Moon Shoe’ – a handmade running shoe designed by Nike co-founder Bill Bowerman for the 1972 Olympics – smashed the world auction record for a pair of sneakers.
It was one of only 12 made – and the only unworn example in existence.
Fast forward five years and it’s no longer unusual for rare and vintage sneakers to command million-dollar prices.
How much is the sneaker market worth?
It’s notoriously difficult to put a value on the global sneaker market, as much of its trade is done privately, but market research and consultancy firm Market Decipher estimated that in 2022 the global market was worth around $10 (€9) Billion. By 2032, they estimate the value will rise to a staggering $51 (€46) billion.
To put that in context, the latest Art Market report by Art Basel and UBS (2023), valued the global art market at $65 (€58) billion.
It’s little surprise that such big prices – and the promise of big profits – have attracted the attention of big players. First Sotheby’s, then, in 2002, another blue-chip auction house joined the party when Christie’s launched its Sneakers, Streetwear & Collectibles Department.
The Kanye effect
To inaugurate their collection, Christie’s held a private selling exhibition called ‘Ye Walks’.
On sale to a handpicked audience of high-rollers were two rare pairs of kicks designed by Kanye « Ye » West as part of his Nike tie-up: the ‘Nike Air Yeezy 1 Prototype’, the first sneaker West designed with the sports giant, and a pair of ‘Nike Donda West Air Jordan VI’, a never-released trainer created in memory of West’s late mother, Dr Donda West – only six pairs were made for West’s family and friends.
Despite his spectacular fall from grace in October 2022, when his Yeezy collaboration with Adidas was cancelled after he was accused of making antisemitic remarks, sneakerheads still drool over West’s designs – and they still go for big bucks.
Multiple modest deals can bring big profits
Global e-commerce company eBay is also getting in on the act – although its General Manager for Global Luxury & Sneakers, Mari Corella, told Euronews Culture that the site identified the value of the sneaker resale market long before others. She said: “eBay started more than 25 years ago as the place to buy and sell, and sneakers naturally came along with that.”
Formally employed by Louis Vuitton, Corella believes eBay’s strength in the secondary sneaker market lies in its massive reach and broad appeal – it operates in 190 territories across the world.
“Because the niche players largely specialise in collectable, or high-end sneakers, their market is limited,” she added.
Sneakerheads come in many shapes and sizes
“When it comes to sneakerheads, people often think of them targeting high-end, or collectible sneakers. But even within that group there are sneaker collectors who are buying them as an investment. There are some who just collect sneakers as a hobby, and there are many who want to wear pre-loved and classic sneakers but keep them in great condition. eBay caters to all types of sneaker lovers,” Corella said.
ADVERTISEMENTAlthough individual sales on eBay haven’t yet reached the million-dollar mark, the company can boast recent sales in the tens-of-thousands of dollars, and multiple smaller deals add up to big profits.
From January to November 2023, the top three most expensive completed sneaker auctions on eBay globally went for a combined total of more than $100,000 (€90,572). Multiply that over months – and years – and you have a very healthy bottom line.
In February 2023, a pair of ‘Nike Air Force 1 Low x Louis Vuitton University Blue’ sold for $60,000 (€54,343). The previous month, a collaboration between eBay and Nike that spawned the ‘Nike SB Charity Dunk’ saw a pair sell for $31,300 (€28,349), while a pair of ‘Nike Air Jordan IV 4 Manila’ achieved $26,715 (€24,196) at a September 2023 auction.
Collaborations, ka-ching
As super-rich sneakerheads flex their financial muscles and drive up the price of rare sneakers, the sector has responded by turning to collaborations and limited production runs to keep the market ticking-over.
ADVERTISEMENTTastemakers including musician and Louis Vuitton creative director Pharrell Williams, the late American fashion designer Virgil Abloh, rappers Travis Scott and Kanye West, and British designer Grace Wales Bonner have collaborated with some of the world’s top luxury and sports brands to create immediately covetable sneakers.
Between them, they’ve worked with Chanel, Louis Vuitton, Moncler, Adidas and Nike to create a new generation of cool, covetable kicks that will undoubtedly be the big money makers in the future.
Wales Bonner’s reinterpretation of Adidas’ classic ‘Samba’ have sold out in stores and are appearing on specialist sneakerhead resale sites including Goat and Farfetch, with four-figure mark-ups.
Theo Myrie, who runs 1NE, a UK-based sneaker and streetwear shop, speaks for those in the middle of the market – the real sneakerheads. 1NE’s business model is simple: source high-end sneakers that can’t be bought from retailers and sell them on for a profit.
ADVERTISEMENTBut getting the stock is where the skill comes in. The international competition is fierce, with some competitors turning to computer bots to hoover-up coveted sneaker drops – the limited release of new designs.
Myrie said: “We don’t use bots, but it is a way some people get their stock. The bots can make hundreds of purchases within one-sixth-hundred of a second, they’re beating a lot of people to the punch.
“We get a lot of our stock from traditional buying and personal connections. There is a community of sneaker lovers, so peer to peer selling is a big part of what we do. We’ll enter raffles organised by the manufacturers for their new drops, and buy from wholesalers, as well from eBay and auctions.”
The most expensive pair of kicks sold by 1NE was a pair of ‘Air Jordan 4’ off-whites customised by Lorenz OG, which sold for £26,000 (€30,851). Lorenz OG is a prolific sneaker customiser who interned at Nike and only produced five pairs of the shoe.
ADVERTISEMENTThe next big thing in the sneaker world?
Despite the spirited attempts of new brands and new collaborations, there’s one GOAT in the race to dominate the secondary sneaker market – and that is undoubtedly the collaboration between Chicago Bulls basketball star Michael Jordan and Nike.
This partnership accounts for four of the five most expensive sneakers ever sold at auction, and has generated a mind-boggling $13.5 (€12.2) million. A pair of ‘Air Jordan 13’s’, worn by the sporting legend in game two of the 1998 NBA finals, sold at Sotheby’s in 2023 for $2.2 (€1.9) million dollars.
The market for match-worn Michael Jordan sneakers is so hot, that even one shoe of a pair worn in his six NBA victories can top the million-dollar mark.
Dubbed the ‘Dynasty Collection’, an auction of six individual ‘Air Jordan’ sneakers (Air Jordan 6, 7, 8, 11, 12 and 14) worn during the clinching games of Jordan’s six Chicago Bulls’ championship wins, were sold by Sotheby’s for $8 (€7.2) million in 2023.
ADVERTISEMENTRumour has it that the Chicago Bull’s public relations officer asked Jordan for one of his game-worn shoes after the Finals in 1991 – a superstitious practice Jordan continued after every playoff game.
The sale cements Jordan’s shoes as the ultimate object of desire for high-net worth sneakerhead investors – and with a set of six championship winning sneakers still up for grabs, the big international players will be rubbing their hands at the prospect of owning the holy grail of sneakers.
But for Myrie and the kids on the street, match-worn Jordan’s are the sneaker equivalent of the Mona Lisa, a work of art that’s way beyond their means. Instead, the most coveted – and more achievable sneakers are pretty much anything created by American rapper and producer Travis Scott.
“In the sneaker world at the moment there is no name bigger than Travis Scott. Anything he touches turns to gold. As soon as a new Scott sneaker drops, everyone is trying to get them. They’re by far the most difficult sneakers to source and the demand for them is off the chart.”
ADVERTISEMENT
