Resale Market Vs Sneakers Swot Analysis

What do we know until now? We know that both the ticket resale market and the sneaker resale market work in a very similar way and that many brokers exist to clear the market. In addition, the sneaker resale market is more advantageous than the ticket resale market due to the fact that sneakers tend to rise in value over time while tickets lose most of its value once the event is over. We know that certain companies such as Nike or Adidas deliberately price their goods at a lower price for a reason. In addition resellers and the companies benefit off of each other. But does this benefit normal consumer as well?

From the literature on the ticket resale market, Leslie and Sorenson found that due to the resale, there was a 4.1% higher gross surplus

As explained earlier both markets must queue in line to get the supply which may lead for some customers not ending up with the desired product or their shoe size. Furthermore, due to resellers icing or backdooring the supply is a serious rent-seeking cost. However when looking at data that I have collected the price of the sneaker in the resale market soars too high that it compensates all the rent-seeking costs and transaction costs. However whether or not the products are allocated to the right people at any point in time remains to be questioned due to the lack of data.

5.1. Limitations of the data

One theoretical limitation of this study pertains to the relatively small sample size of data. The data I collected were retrieved from StockX, composing of 18 different sneakers released in the year 2016 and 2017. For each sneaker I observed ranged from 57 sneakers sold to a maximum of 500 sneakers sold.

However there was a limit to collecting more than 500 sales due to StockX providing only 500 “most recent” sales. For example, for the Adidas Power Phase which released on 2017, June 4 the total number of sales observed was 4496 sales. However, the data I collected were only from June 29 to July 3. The period was only 5 days but it recorded in 500 sales. It would have been more accurate if I could have collected the sales price from the release date to the current

First, I want to gather more data on the fluctuating price of the sneaker in the resale market and see if I can identify certain patterns. From my assumption, the price would be higher before the release date and gradually decline as more and more sellers will try to unload their stock. However, after a certain period of time there seems to be two cases, which in the first price may go further higher than the initial maximum point, while the other may lose their value. I think it is crucial to research the common ground of the sneakers that rise in price as in the opposite case. Furthermore what are the company’s new marketing strategies in this ever fast pace changing trends of sneakers and how to keep satisfy the thirst of sneakerheads. Lastly, as I stated in the limitations of my study, I want to relationship between the rising market of China and the resale market. China’s immense population sours up the demand which cannot be neglected in the resale market. In this paper, due to limitations of data I could not capture the relationship between these two factors, however in the future research I would like to research and capture the relationship between the two factors and bring a deeper analysis on the resale