Experts at Standard Chartered predict that “Bitcoin Is Set to Quadruple to $120,000 by End of 2024”, and we may be on a similar trend with the sneaker industry. Just like the crypto currency market, the sneaker market has its own share of volatility recently. Prices for certain limited-edition sneakers skyrocketed, with some kicks fetching thousands of dollars, while others dip below retail right after release. For the first half of 2023, the sneaker market was all bear and in the red for traders. However, we believe that the bear market is bottoming out, and that prices are poised to rebound and could reach all time highs soon.
First, the sneaker market is still growing. The global sneaker market was worth an estimated $152.4 billion in 2022, and it is expected to grow to $214.5 billion by 2027. This growth is being driven by a number of factors, including the increasing popularity of sneakers as fashion items, the growing popularity of sneaker reselling, and the increasing affluence of consumers in emerging markets.
Second, a small number of limited-edition sneakers that are still in high demand. These sneakers are often from iconic collaborations, backed by celebrities, or of iconic/classic colorways. As long as there is demand for these sneakers, their prices will likely maintain and may poise to be great asset investments.
If you are thinking about making an investment on sneaker assets, now may be a good time. We crunched the numbers, looking at the SEA, APAC and US data as a whole and there are a number of SKUs that we think are likely to increase in value over time.
Here’s our collection asset pick of the week:
adidas Yeezy Slides 'Onyx'
A Ma Maniére x Air Jordan 4 'Violet Ore'
What are traits of sneakers that tend to out-perform in terms of price appreciation? Here’s how you can also keep an eye out for bullish sneakers?
Sneakers from iconic collaborations. Sneakers that are the result of collaborations between major brands and celebrities or artists are always in high demand. These sneakers are limited in supply, with low risk of restocks, thus their prices are less likely to fall, and often fetch great prices on resale markets.
Sneakers adorned by famous celebrities. Sneakers that were worn by athletes, singers, even politicians are highly sought-after. The celebrities help carry the demand, and sometimes these sneakers are considered snippets of sneaker history. Expect prices to rise quickly in the short run.
Sneakers with classic colourways. Great examples are Chicago’s Red Black White, and Monotone – Black, White, Grey colours. Sneakers that come in rare or discontinued colorways are potentially hype and short-term performers. The classic colours always outperforms hype colours in the long run.