Currie Was In The Fire, But UA Couldn'T Get Into The Second Hand Shoe Resale Market.

In the second quarter earnings report released by Under Armour at the end of July, although the net income of US brands dropped by 58% over the same period, a notable performance was that the performance of their sneakers was still excellent.

With the signing of Stephen Currie's signature basketball boots series, Under Armour's footwear revenue increased by 58% to $243 million a year.

In the past two years, with the outstanding performance of the warrior's home star in NBA, Under Armour, a sponsor, has already gained a lot of money and its market value has increased by nearly ten billion US dollars.

Even so, Curie failed to help the US upstart brand win a very important field of sports shoes, which is the resale market of second hand shoes.

This is a huge economic benefit.

The field first appeared as a "sneaker" underground culture of sneakers, but by the year 2015, the value of the global two class shoes resale market has reached US $1 billion 200 million, and it is still growing.

At present, the two sports brands including Nike and Adidas, including Jordan Brand, are the biggest winners in the world's two class shoes resale market.

In 2015, about 70% of the market share came from Nike and its Jordan Brand, said Josh Luber, founder of StockX.com, the famous second-hand shoe trading platform in the US.

It has about 20% of the market.

In fact, German brands relied on the Yezzy series to rapidly expand the territory of the second-hand market. It is reported that before the birth of the Yezzy series, 96% of the second-hand market belonged to Nike, and Adidas only accounted for 1%.

However, according to eBay's secondary market data, more than 90% of sports shoes are still owned by Nike and Jordan Brand.

Although Under Armour has surpassed Adidas as the second largest brand in the North American market and has won a share in the competition with Nike, the vigorous young American brand has not had too many highlights in the second-hand shoe market.

Previously, Under Armour was the only hot seller in the secondary market.

It is the first generation of MVP's signature the Curry One.

According to data provided by SportsOneSource, a market research firm, sales of basketball shoes last year were about four times that of the same period a year ago, thanks to the continuous selling of the two generation signature shoes. For a simple reason, Curie led the warriors to win the NBA championship and won the honor of MVP.

Even though the price of MVP's signature shoe in the resale market is two times that of the original price, no one thinks it is the performance of Under Armour in the secondary market.

A general consensus is that the important foundation of the resale market is the collection value of scarce sports shoes. The popularity of the Air Jordan series is exactly the embodiment.

On the contrary, the selling of boots in Cooley is based on the excellent performance and prestige of the warriors.

This is not a stabilizing factor in the shoe resale market.

Josh Luber, founder of the shoe resale platform, agrees with StockX.com.

"The brand has not learned how to make use of the second-hand market and the shoe collector," he said. "The amount of supply is really important. For the shoe control, as long as it is a limited Nike, they will buy it."

Nike occupies a larger share of the secondary market. Besides the design factors and marketing methods, they also use a basic economic principle, that is, to control supply.

Obviously, with the brand effect reaching a certain level, Nike will be attacked by the fans of shoes as long as the sale is limited.

This means that those who can't buy new shoes will have to devote themselves to the secondary market, so that the market value of sneakers will rise, which will explain why NMD is so popular.

According to Business Insider, Edward Plank, Jefferies analyst at investment bank of Wall Street, said: "it is undeniable that the brand has been successful in its own retail franchise, but its products lack the attraction of collection at present, largely because the company does not restrict supply."

In addition, analysts believe that another reason for the cold spell of Under Armour in the resale market is that they are more publicizing the technical content of their shoes, but have not instilled tidal currents and street atmosphere into the shoes, which will attract the attention of the collectors.

At the same time, analysts said that although the second-hand trading data is not a direct indicator of the company's sales performance, these sneakers are of concern in the secondary market, which can add interest and attractiveness to the products, thus "promoting the market's demand for their sports shoes for the two time".

As a result, the US brand will gain both fame and wealth.

It can be seen that today's Under Armour basketball shoes product line is mainly dependent on the star effect of curi.

Compared with Jordan Brand, even if Michael Jordan has such a "basketball God", the brand can not rely solely on the "flying man" to maintain long-term heat.

Under Armour can also imitate Nike's method, occasionally carry out "hunger marketing" to the hot shoe series, and inject some interesting designs and stories into it. Under Armour needs to approach this valuable market of shoes collectors with ingenious way.