Why Can Sneakers Be So Expensive? Is It A New Outlet Or A Cut Of Leek?

How expensive can a pair of shoes be?

At present, the most expensive shoes in the world are Air Yeezy2 (Red October), which is traded online on the price of 17 million US dollars.

How much crazy can the price of shoes go up?

In 2017, Nike's Air Jordan and international tide brand OFF - WHITE, called OFF WHITE Air Jordan 1, went up to 12000 yuan from 1499 yuan.

In 2018, Travis Scott and Air Jordan co operated with a pair of sneakers priced at 1299 yuan, which rose to 8000 yuan in less than a month.

How much can fried shoes earn?

Jordan 4 Laser World Wide Limited 4 pairs, 200 thousand yuan to start, the selling price is as high as 500 thousand, and the profit is as high as 150%.

Undefeated Air Jordan 4 sold 72 pairs at the same time, 30 thousand started 90 thousand, and the profit was 200%, the current market value is 15-16 million;

Last year, Mr. Kan spent 1 billion dollars on his annual shoe sales.

...

10 years ago, stocks, three years ago, and today's fried shoes were not random.

Why on earth can sneakers be so expensive? What exactly is fried shoes? Who is the beneficiary of fried shoes?

　　 Why can sneakers be so expensive?

This question can be answered simply in 4 words: supply exceeds demand, and it is the result of both the supply side and the demand side.

1) brand hunger marketing

If we ask who is the "culprit" of soaring shoe prices, the brand players who are always hungry for marketing are absolutely willing to do so.

It can be seen from the beginning that the selling price of shoes is inversely proportional to the quantity of sale, and the pricing of limited single figures is basically several hundred thousand. The price limit of two digit is basically tens of thousands of... Finally, prices often rise several times.

For example, when the first double Yeezy of Adidas came out in 2015, the first generation of Yeezy Boost 750 sold only 9000 pairs. At that time, it was also reported that only VIP users of Adidas were eligible to purchase, which had been fired from 10 to more than 350 dollars in the black market.

According to reason, high price is a game, but small profits and quick turnover are also a game. Why can't the brand add a little production to make the price more friendly, and the profit is likely to be higher?

Because this is not a luxury pricing strategy, but a marketing strategy. Every time the "bad rush" and "price surge" are free to the brand side.

So, whether Adidas or Nike, when most of the shoes are stocked with stock, they will often introduce some styles that we can't ask for.

2) initial SNEAKER culture

In other words, not every brand of every product is hungry marketing, can let consumers scramble, so why is it that sneakers become the target of speculation? This is the beginning of the popularity of sneakers - SNEAKER culture.

The SNEAKER culture in China is developed along with the rise of basketball and the popularity of NBA.

SNEAKER can be simply understood as fans of sports shoes collectors. They love sneakers mainly because they love basketball or like a football star. For example, Nike's AJ (AIR JORDAN) series is named after NBA's most famous star Michael Jordan, which is especially popular.

In the early days, because of the high price, even the limited edition shoes were basically available, and they would not be sold again after buying. Therefore, although these players have made the first batch of users in the country, they can only be considered as minority groups.

3) the rise of trend culture.

If SNEAKER culture is a product of the circle, then the rise of the domestic trend culture has broken the original circle of shoes.

More and more young people like to show their attitude and independence by wearing clothes, and love the tide cards that blend into elements such as basketball, hip-hop, DJ, hip-hop, skateboard and so on. And sneakers can be regarded as the finishing touch of their fashion.

Some of them follow a trend designer, such as the famous American rap singer Kanye West who created the "Yeezy Empire", and some pay for a fashionable style.

For whatever reason, these young people who can not afford to underestimate their spending power are the backbone of the growth of the sports shoes market.

4) star effect

In addition to basketball stars, the popularity of sports shoes can not be separated from the popularity of many stars.

Take domestic stars as an example.

Show Luo has more than 5000 pairs of sneakers, and it is said that almost all shoe lovers crave AJ and Yeezy.

Bai Jing Ting, who goes out to buy shoes, always "loves shoes like life". He usually sleeps with his sneakers. The state of the social platform is basically AJ. The walls of his home are all piled out with AJ, and even once the micro-blog is hot on the sneakers.

Last week, Jam Hsiao's mansion was exposed. About 100 pairs of shoes were covered with a wall. No more because he confined himself to only one wall, and many of them had to be sent away or eliminated.

JJ Lin, Jay Chou, Eason Chan, Yi Yang thousand Xi, Wu Yifan and many other stars have shown "sneakers" in public.

5) huge profits stimulate entry

If the above SNEAKER culture, the rise of the trend and the star effect are just because of the consumption behavior that they love or follow suit, then people who really want sneakers to become "roasted seeds" are those who want to make money with their shoes.

As can be seen from the above, the price of popular sneakers is not a problem of several times. Odd profits are being eyed by more and more speculators. A lot of ordinary people give up speculation and speculation and join the market of fried shoes.

Fried shoes have become a form of investment.

　 How to fry the fried shoes?

Interest and capital are intertwined, and the shoe business has exploded. How should we fry the fried shoes? Where to buy? And where to throw it out? Can everyone participate in this circuit? Perhaps it is possible to return to the most common participants to see the most essential market dynamics.

I interviewed two senior and usual sneakers, to see if the ordinary players could also do "I am 25 years old. I only made 1 million of my shoes last month".

1) shoe extraction

The first step of frying shoes is to take out shoes first, and draw the winning sign to buy the original goods at the original price, so that the shoes are almost steady, so there are many ways to draw lots.

Online lottery, luck and technology coexist.

The draw is mainly conducted in official channels, such as online Nike official App Snkrs, Adidas official website, public number, direct store's applet, web page, short message, etc., and some online outlets of trend shop.

The number of balloting bases of Direct stores and official website is very large, which is in short supply, so it is very difficult.

Take Nike for example, Snkrs is on sale at nine o'clock every morning, and several players receive Nike's sneakers on sale at the same time. They quickly select the best profit size, enter the password, enter queuing sequence and switch accounts. The registration of multiple accounts was completed within two minutes, just to catch the first two minutes of the highest success rate.

By constantly refreshing account information and switching accounts, we can see Nike's iconic "XX, regrettably" information, and then change the number, continue to refresh, view, log out, change numbers and refresh. Keep repeating the operation until you see the price button on the lower left corner of the shoe preview, which is "sell off" before giving up.

However, ordinary players seem to have a new way to draw money on the capital side.

Taking the Nice, a platform for trading shoes, now has launched the "generation registration" service. It can skip the tedious information registration link mentioned before and draw lots directly.

"I am 25 years old, and I have a million dollars in fried shoes". Is it a new draught or a cut of leek? However, Zhang Xiao Zhang said that this function still has little effect, more like a hard and wide platform. Because each person can register two times each time, obtaining more registration rights requires "daily check-in" and "invite friends", but only platform retention and new means.

It is hard to sign a domestic official platform with huge population base. Many people will transfer to the overseas outlets.

If you have a private address overseas, the probability of successful signing can be greatly increased. Now many domestic players are also using lots of walls to pick up foreign direct mail or transshipment sites to increase the winning rate, such as YeezySupply, FootLocker and other websites.

At the historic moment, there are many public numbers and communities that specifically provide the time to market the shoes, which makes the lottery not only a factor of luck and hand speed, but also a contest of information.

Even the platform has launched the "replenishment monitoring" function to deal with the surprise sale way taken by Snkrs some time ago.

Through the monitoring system, a membership system is designed to allow members to see the scope of the replenishment information and the size of the goods on the shelves at the first time, or to sell the robot to make profits.

Overseas gamers said that before the draw was used to plug in Bypass and so on, they could skip the queuing page directly. On the same website, you may be a difference between "yes" and "no" when you sell a few seconds in the morning.

It can be seen that lottery is essentially the early acquisition of information. In such an era of universal shoe playing, information is wealth.

Second, line up, information and physical strength contest.

Compared with online shoes, there are not many ways to line up the stores.

Similar to online lottery, queuing at the next store is mainly drawing lots to get the right to buy, but only one more channel, whether it can win the lottery or not. Generally, there are two kinds of lines, one is the original purchase price, the other is the two round of drawing lots. Now the brand owners will adopt the "two round of drawing lots" in order to win popularity.

"The two round of drawing lots" refers to the preliminary drawing of small procedures in the direct store, after the signing of the system, the system will notify the next two times to draw lots, and the two ballot can be purchased.

I've started to get into trouble here, and I'm queuing up in advance. Why are so many people willing to run in the hot sun to line up?

Xiao Zhang told me that the sale of Air Jordan 1 silk black toe would be profitable for Shanghai Wujiaochang store to sell.

Because there is not a large number of goods in circulation on the market, the current purchase price is very high. The shoes are bought at the original price of 1299 yuan. At present, the purchase price of men's code is over ten thousand. If you sign this morning, you will earn more than 7000 at least once.

Queuing for an hour, making a profit of seven thousand is better than being in line at the red shop. However, there are many stores and many people in Shanghai.

Online, although there is no platform monitoring and robot operation, it is essential for information acquisition. Like the bargains of the Nike sale these days, the L1 level shops in Wuhan, Changsha and other places have a large sale volume. There are hundreds of pairs. When the insiders know the news, they will also run to the line to participate in the two round of balloting.

In Shanghai, there are 10-15 shops selling some shoes at the same time. The information between stores is independent, and every shop can register to increase the probability of winning the lottery.

In addition to the direct shop, the demand for tide shops is even more stringent. For example, Edison Chan's Juice, Shanghai's Doe and so on, need ID cards, passports, or even driving licenses. However, the harsh drawing conditions can avoid many cattle and make buyers easier to sign.

The scene of offline balloting is also very interesting. Every major outlets have players queuing up, and the business of milk tea shops and convenience stores around the business circle has been promoted. In the draw team, players wear the most satisfactory sneakers to catch up with this "tide Festival". To some extent, the shoes at the foot can represent the position of the wearer in this team.

Although the offline sale will be a little more fair, the time cost, the transportation cost and the personal energy are considered to be very few.

Therefore, many people are now too lazy to queue up for the sale channels. For example, Xiao Zhang, a player, will target the eager students and retail investors on the day of sale or one or two days, and buy them at the lowest point, and aim at the high point and throw out the difference. But there is also a lack of assurance that the market will be as good as the stock market.

2) selling shoes

It can be seen that buying shoes is just the first step, throwing shoes at what price, and trading on what platform is best. The buying and selling of sports shoes circle is as much as the stock market.

In the past two years, App has made all kinds of stems, such as quick hands, jitter, and short video. "A cone" and "coconut" are known by more and more young people. The emergence of the platform for the sale of sports shoes has also made the transaction of shoe shoes transformed from the previous Taobao store and micro dealer to the C2C mode of direct trading between individual sellers and individual buyers.

Driven by these platforms, the buyers and sellers of the shoe market have changed substantially.

Emergence of trading platform

The biggest shoe trading platform in China is "poison". Individual players can sell shoes that are directly sold on them. Through the "consignment" service, the seller will place his own stock on the platform and pay a certain storage fee, so that he can freely buy and sell on the platform, and the amount will be immediately payable after the sale.

The platform plays the role of identification and guarantee. Sellers do not need to pack their own goods. "Consignment" speeds up circulation, and shoes buy and sell faster, and the platform can earn more commission fees.

In this mode, buyers and sellers do not have to handle these shoes, they have already bought and sold them. To a great extent, it also changed the mode of monopoly pricing by big stores, and basically realized the pricing by the market.

Nice, a fashion sharing platform set up in 2013, also sniffed the sports shoe boom and started the business of sneakers in 2018. Similar to the poison C2C mode, with lower fees to win the favor of players.

Overseas Goat also announced in July 30th this year formally launched in China, capital and platform are targeting the sneaker trend market hidden behind the huge business prospects and profit margins.

The market for sports shoes is becoming more and more popular. The factors affecting prices are no longer simply supply and demand. A pair of sneakers with a price of up to 1300 yuan may rise in price in a few days because of many non market factors.

For example, a popular hip-hop theme shows is called "strip show" by the shoe circle. A star's upper foot may make the price of this pair of shoes take off instantaneously. It has nothing to do with the volume of goods and has nothing to do with the value of the color. As long as a certain star or some stars are on the feet, the heat of these shoes will soar.

Many of them do not seem to pass, but because of the limited value and so on, the valuable shoes will eventually become more and more pleasant. Straight up, "expensive is nice."

Second, fried shoes such as stocks.

Now, there are more complicated factors that are stirring up the price of the shoes market. For example, behind the scenes dealers who have the funds and influence, they will plan to stir up some shoes, which will lead more people to buy the wind, and make the market of the shoes market appear a lot of bubbles.

The "rush day" began in June 20th this year, making the price of the shoes market more unstable. For example, the dealer will buy some super limited shoes on a large scale, resulting in a monopoly on the price of the shoes, and then cause panic or follow suit among ordinary people.

The emergence of the platform of shoes trading platform has completely virtualized the traditional spot shoe transactions for many years, and has become a trading mode similar to the stock market. Any trend of wind and rain may cause a big fluctuation in the price of the shoes. When the price rises in App, it will be shown in real time. The shoe market can bring you general stimulation like stock market.

In addition, in the long run, some colors are really very online, but because of the large volume of goods, the price has not been fired up. The price will gradually come up with the end of the large-scale distribution. This kind of sneakers are known as "long line financing" by the insiders, and the prices will mostly remain dormant for a period of time before the original price or even lower than the original price.

Therefore, the real way to earn money is to capitate the market with capital and profit from price fluctuations. Like stocks, considering all factors, buying, holding and selling is a long term stable way of making profits.

　 Who is the beneficiary behind the fried shoes?

Since 2011, a steady stream of people has poured into the market of sports shoes, and even in the past two years there has been a "grand occasion" for all people to stir up shoes. The market for sneakers is so popular that in the final analysis, it is the huge profits behind sneakers.

So, who are the beneficiaries behind the fried shoes?

1) shoe dealers

The first thing to benefit is, of course, the shoe dealers in the two tier market.

According to the data, AJ accounted for 44% of the two class shoes Market in 2018, Nike accounted for 26% of the other brands, and Adidas accounted for 24%, while the three top brands were 59%, 58% and 25% premium respectively in the two market.

Shoe dealers generally can be divided into two categories, one is retail sellers, they will spend a lot of time and energy to queue up for shoes, and then increase the price of several hundred pieces to sell, so as to earn the difference.

Xia Jiahuan, who was rated by the shoe circle as "no sneakers that he can't buy," said in an interview that the profit level of the two class market in 2011 could reach 30%, or even 100%.

A pair of Nike Air Yeezy, which sells for 1000-1500 dollars abroad, may be sold for 2000-3000 dollars.

The other is the dealer who we mentioned before. They will first predict the best selling color and gold shoes of a limited number of shoes, and then hire people to queue up for goods in the store. As long as buyout of main products, they can raise the price of the size, thereby driving up the price of other sizes.

"First finance" has reported that in November 2018, a joint AJ was launched in Kunming. A northeast producer flew to Kunming and hired 50 people to queue up for shoes. A total of 26 pairs were sold in Kunming and 21 pairs were sold by the dealer.

2) trading platform

Such as StockX abroad, domestic venom, Nice and other sports shoes consignment platform, almost all around 2015. From then on, the market began to change. These sports shoes consignment platform greatly reduced the profit margin of shoe dealers, and Xia Jiahuan also gave up selling shoes at that time.

Zettaran C, a sports shoe blogger, said that these shoes consignment platform provided convenience for the trading of sports shoes, but their fees and forced use of SF express increased the price of the shoes in the two tier market.

In addition, some shoes will be sold in advance at a high price in front of the platform, and some shoes will continue to rise in the reverse trading.

By 2016, Xia Jiahuan had also opened his own shoe consignment shop, Solestage, from individual retail to full time selling sports shoes.

The rise of the platform has turned the domestic two level shoes trading market into a hot investment business. On the front page of Nice, there is a Banner hanging on the "shoe shoe financial journal".

At present, the business mode of these platforms is mainly to collect fees from sellers through the resale and appraisal service of sneakers. The fee for the poison is 7.5%-9.5% for pricing. Nice charges 4% for spot and 8% for advance sale.

If the price of the shoes is higher, the platform can charge a higher fee.

3) brand

The rise of the two tier market has also brought great commercial value to the brand side.

We also mentioned that in the 11 years or 12 years, the two tier market of sports shoes began to develop. A shopkeeper at a sports shoe consignment shop mentioned in an interview with the interface news that people began to ask if they had sold AJ.

At that time, the frequency of offering AJ was very low, and only one item was issued in a month, sometimes even two months. Because in the past long period of time, AJ has been frying culture, and many lovers are rushing to the story and culture behind their shoes.

By 2014, the shopkeeper found that more and more people were asking AJ. It was also in this year that Nike increased the volume of AJ series shoes. The frequency of new shoes was no longer one or two months, and became a Monday pair.

In 2018, Nike sold a total of 170 pairs of AJ1, equivalent to an average of less than 3 days to come out a new color matching. AJ also surged from original 980 to 1200, to 1400 and 1500 now.

And no mention of the rising price of the hot market, the significance of the limited number of shoes is to enhance the brand value. But when consumers can't buy limited shoes, they tend to buy ordinary sports shoes instead. In this way, the consumption of the brand is stimulated by the whole market.

In addition, there is another kind of operation to stimulate consumption, that is replenishment. Brand will be strictly controlled at the time of first sale, and then replenish after a few months. In this way, consumers who have not bought or hesitated before will buy, help promote brand and increase sales.

4) Putian fake shoes

It is also because of the huge profits of sports shoes and the control of brands, Putian shoe factories have also started the business of fake limited shoes. It is said that every year there are several times more imitation products than the genuine mix into the two tier market.

For consumers, there are only two ways to get a limited number of sneakers. The first is to buy shoes at the original price through the process of "lottery - Yaohao - queuing"; the second is to buy shoes from the shoe dealers.

However, at present, the probability of buying shoes at the original price is very low. If consumers do not want to buy shoes from the two tier market, they may choose "Putian shoe king".

A pair of sneakers fired to five thousand or six thousand, Putian shoe factory usually has several grades of imitation goods, the general imitation wholesale price of 150 yuan, the quality of 280 yuan. If necessary, shoe boxes, bags and identification certificates can also be provided.

On the market, only a few dollars are required for printing a poisonous identification book, a security button and a printed label.

Many Putian shoe factories can sell more than one hundred pairs of imitation shoes every day.

　 epilogue

Xia Jiahuan said in an interview that before 2015, 9 of the 10 people made money, and half of them could make money before 2017. In the past two years, fried shoes are no longer stable, and there may be 7 losses in 10 people.

The golden age of sports shoes has passed, and the market for sports shoes today is more like the "stock market".

Sports shoes have become a "hype tool". It is difficult to buy a pair of shoes at the original price. The market price can only be bought or sold.

Finally, I would like to advise you that the shoes circle is risky and needs to be cautious when entering the market.