Recently, limited-edition shoes have gained popularity and are known as a new important investment product. 

The rare shoes are earning more profit than other products as time passes. The prices of shoes vary based on their rarity and popularity. 

Platforms centered on reselling items have emerged as people seek out marketplaces for these rare shoes. The prime example of such a marketplace is Kream, which has grown into Korea’s most popular resale platform. 

Kream carries the most expensive resale sneakers from Air Jordan. The original price was US $125 (160,500 won), but now sits at about US $3,949 (5 million won). 
 
Air Jordans are famous because these shoes are known to be produced with the highest quality materials, and naturally, any product made with high-quality material will have a high cost. 

However, the biggest buzz came about as a result of people waiting at stores to snatch as many Air Jordan pairs as possible. Therefore, these resellers have made money due to their limited release. 

These sneakers remain in such high demand that people can resell them and earn significant profits. 

Their popularity is rooted in the fact that  people want to have their share of the exclusive release. Limited release designs add extra value to products. 
 
Because these sneakers remain in such high demand, an investor can resell them for a significant profit. 

Profit margins are substantial while the risk is low because demand for such sneakers is inelastic.
 
Due to the increase in sneaker investors, the sneaker resale market has increased tremendously. 

The US sneaker resale market generated US $2 billion in 2019, according to a 2020 Cowan Research Equity study. 

The study also found that the sneaker resale business will explode and generate as much as  US $30 billion by 2030. 
 
Korea’s sneaker resale market has not been around for a long time, but saw significant developments over a short period of time.

The market generated 500 billion won in 2020, but experts predict it will bring in about 1 trillion won after 2021—thereby doubling its 2020 value. 

A limited-edition marketing strategy carries a sense of immediacy and exclusivity as products are only available for a short time and or in limited quantity. 

Limited-edition shoe designs add extra value to products as  they can be seen as exclusive  collector’s items. 

Growth in the sneaker resale market was mostly due to the MZ generation. Many from the MZ generation wanted to purchase limited products, despite their high prices. 

These limited-edition sneakers provide uniqueness and satisfy the desire for approval on social media.

The sneakers have been popular, especially among teenagers, many of whom have begun using the resale market to purchase rare sneakers. 
 
Furthermore, celebrity collaboration adds to the rarity and value of sneaker brands.

For example, Nike collaborated with G-Dragon to produce “Para-noise,” which sold for US $187 (219,000 won). 

The same shoes are now being sold for about US $8,570 (10 million won). 

Understanding the high  demand for these sneakers, companies have held raffles to provide their customers the opportunity to purchase limited-edition sneakers at retail value. 

Customers sign-up for the chance to get their hands on the pair they want. 

After logging into Kream, customers select their shoe sizes and search for the sneakers they would like to purchase.

From that point on, they  can then purchase their shoes easily.

In addition to the limited-edition sneaker resale market, the global luxury goods market is expected to increase from US $309.6 billion in 2021 to US $382.6 billion in 2025 at a CAGR of 5.4%. 

Furthermore, Korea's resale market has shown major growth compared to similar markets in other countries. 

We should account for the growth of the market and the changes in society. The luxury goods and sneakers resale market will continue to grow significantly worldwide. 
 
Shoes are not merely a fashion item but also an investment. Sneakers are currently in high demand and thus it is imperative that we  keep an eye on the sneakers resale market from now on.

Hakyung Song 

G10 

Branksome Hall Asia