Market Analytics
Many of you always ask yourselves, why should such sneaker investment pay off ? Why should sneakers gain even more value after release ? Sneaker investments are gaining more and more attention nowadays, as they are less stressful and more flexible in time. But before we make any investments, we will introduce you to the world of the sneaker market. This is divided into 5 important procedures, which we will go through together with you:
1. Before the Release
Before a sneaker release takes place, a so-called "early sales" happens on the sneaker platforms. From these sales you can see how much demand there is for the shoe, sales figures and popular sizes. BUT: These prices usually tend to be higher before a release! As shown in the example picture above: The sales volume in February was around 400 Euro and at the Drop Day 14.03.2020 it was 220 Euro. The reason for this higher pre-release prices is simple: low supply and high demand.
2. The Drop Day
At the Drop Day all interested people try to get a pair of sneakers. Some of them have luck or the necessary software to get some. However, the majority will take an L. The reason for this is the relationship between supply and demand. The demand is the highest at Drop Day, many interested buyers buy the shoe for resell - impuls purchase. As a result, prices will rise by about 10-15% on Drop Day.
3. After the Release
Just a few days after the Drop Day you will notice that the 10-15% is only a temporary increase, as many interested parties have already bought the sneaker on the Drop Day, the demand starts to fall a little bit (less people are buying -> more people are selling, mostly its gonna be the lowest Price on the market). Now some of you are asking yourselves the question: If you know that the sneakers will increase in value, why do many sell their pairs? Well, there are several reasons, for example, some of them just signed up for a shoe in the Raffle for fun and came out as lucky winners. They sell the shoe immediately and are happy about the income. Many also have no money to leave the sneaker for the retail price - blocked money. Usually we come in this step 3 (when the prices seem the lowest for us) and buy a few pairs.
4. A few months after Release
Popular sneakers, which can be seen for example with celebrities and influencers, are constantly gaining value over time. This is the result of a market shift from a buyer's market to a seller's market - like a leverage. This shift in leverage is due to the fact that people wear pairs or collect them. The sellers thus influence the market. Furthermore, social networks ensure that the sneakers remain in people's minds, so people see what they cannot have and want more. In addition, the so-called quick sellers have become fewer and fewer, which means that the price is also moving more stable in the direction of higher prices.
5. Years after Release
Over time, by wearing the popular sneakers, more DS pairs (DS = deadstock, brand new) disappear from the market. This makes the ownership of new pairs all the more desirable. This means that the price will continue to increase indefinitely. Depending on how the capital allows you to do so, you can leave them lying around for as long as you want, but usually the money earned can be invested in something new.
! DISCLAIMER !
This market trend refers only to popular sneaker silhouettes (for example: Jordan 1, Dunk, Yeezy...). These have a very high demand on the market, so it only makes sense to invest in them. Nobody knows 100% how the courses will develop in the future. You can only speculate on possible results. So before you want to invest in anything on your own, ask in our group, talk to friends and see what other sneaker professionals invest in. Only invest the amount you are prepared to lose if the price drops! In addition, unforeseeable causes can also occur which could have a negative or positive effect on the price, for example the invested sneaker gets a Restock (unlikely but ALWAYS possible! - negative, artist ends the cooperation with the manufacturer - positive).
Make yourself familiar with our Guides and leaves questions in our Chat. The experience always comes with a little practice!
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