When someone says investment portfolio, you immediately think of stocks, shares, or real estate. These are very good and sound investments and a great option for many Filipinos.
But did you know that sneakers can be a great investment, too? There are sneakers out there that are raking in the money in just a short period of time.
However, there are some things you need to know before you start hoarding sneakers and selling them to people.
Not all sneakers will give you high returns for your money.
You don’t just buy any pair of sneakers in stores or online and expect to receive a huge return of your investment instantly.
The resale value is not set in stone, and thus, cannot be predicted accurately.
There’s still an element of unpredictability to this kind of investment, even if you have a pulse for which sneakers are highly in demand or hard to find.
Prices can still fluctuate, and even a pair of sneakers that are very valuable can suddenly lose their value just like that.
Although sneakers make good investments, you also need to be ready when the time comes their prices come crashing down.
Not everyone collects sneakers.
Even if you have the most expensive pairs in your collection, if you don’t have the right buyers for them, they will just sit there in your closet, gathering dust and not getting bought.
Selling them can be challenging because there aren’t a lot of true-blue sneaker fans who have the money to splurge on them.
Not every pair that you see is the real thing.
No shocker here. The internet is full of counterfeit sneakers it’s tricky to spot the difference.
Buyers will also claim that the pair of sneakers you’re selling is fake even it it’s authentic just to get a lower price for it.
What you should consider
Demand vs Supply
The rarer a pair of sneakers is, the higher the demand for it and the higher its value will most likely be.
If a certain brand is releasing just 100 pairs for a limited edition model, sneakerheads will definitely want them, and they will spend a fortune just to have them. This is when the demand for sneakers goes up.
Case in point: When Kanye West released his Adidas Yeezy Boost 350s in September 2018, resale prices shot up astronomically.
But because of these sneakers’ mass quantity production, fans all over the world were able to buy them at their regular retail price.
The increased supply made the demand for them decline and their resale value to drop.
The physical condition of the sneakers
They should have that pristine, mint, and unworn look if you want to sell them off at their peak value.
The only time a used or worn pair of sneakers will increase in value is when someone famous, like Michael Jordan, Steph Curry, or Lebron James actually wore it at a big game or event.
Or if a pair of sneakers has some connection to or designed in collaboration with a high-profile celebrity.
How to start investing in sneakers
Competition is fierce in the sneaker reselling market, so you’ll need to know where you can acquire these highly coveted footwear and tap the people who are willing to spend money on them.
You must be a sneakerhead yourself, or get to know the sneakerhead culture on a deeper level to understand how it works and be successful at investing in it.
Buy the sneakers cheap at retail price.
There’s a huge profit to be made with the right pair of sneakers.
According to online marketplace and sneaker reseller StockX, they once saw a Nike pair retailing at 250 USD sell for a whopping 40,000 USD.
You need to be willing to camp outside sneaker stores just to be among the first to buy a pair at the original retail price.
You may also need to forge a connection with people in the know, like store managers, marketing teams, or anyone involved with the sneaker industry so that you’ll get exclusive access or early dibs.
Follow popular sneaker blogs.
Some of the popular ones include HYPEBEAST, Sole Collector, Highsnobiety Sneakers, and KicksOnFire.
They will keep you updated with the latest releases and release dates, in-depth articles about sneakers, and even price guides.
It will also be helpful to follow major sneaker brands’ social media accounts and official websites so that you will not miss out on anything.
Figure out how much you’re going to sell them.
Just because a lot of sneaker fans are willing to shell out money for collectible sneakers doesn’t mean you should price them any way you want.
Make sure to do your research and run a search on authority reseller websites before you decide on a price. It should still be within the market price.
Check out the market value online. Don’t overprice, but don’t underprice, either, because this can harm future sales.
Decide on where you want to sell.
Are you going to sell on your social media accounts or your e-commerce site?
Are you going to sell within your personal or professional network? Or are you planning on consigning it to a store or seller of luxury goods?
Consider how you can best reach your target market so that you can easily sell off your sneakers at your asking price.
Investing in sneakers is a lot like investing in the stock market. There are sneakers that start out cold but eventually grow hot and grow in value as time passes.
On the contrary, there are also much hyped about sneakers that sadly turn out as just hype, losing attention and value at the same time.
But if you have a good feeling about a pair of sneakers, go ahead and trust your instincts. Only after you have done your research and checked out the latest trends, of course.
You can be successful at investing in sneakers in the Philippines, but you need to be cautious and smart about it, as well as have a good business sense.