With the sneakers market growing rapidly in recent years, more and more investors have recognized the money-making opportunities behind sneakers investing. There are a few strategies that investors can leverage to capitalize on this trend. Firstly, investors can invest in limited-edition collectible sneakers. These rare sneakers often appreciate greatly in secondary markets once sold out. Secondly, investors can purchase sneakers in bulk when there is a big sale or promotion event, then resell them later at a higher price. Thirdly, investors can invest early in potential hot-selling sneaker models. Getting in early allows investors to buy at a lower cost basis. Fourthly, investors can rent out their sneakers on sneaker rental platforms to earn rental income. By mastering those investing strategies around sneakers, investors may generate considerable profits in both short-term flipping and long-term holds.
Invest in limited-edition collectible sneakers
Limited-edition collectible sneakers collaborate with luxury brands or celebrities tend to be speculative favorites. Their scarcity nature makes them high in demand once hitting the market. Investors can capitalize on the fear of missing out sentiment of buyers to sell at a remarkable markup. For instance, the Louis Vuitton Air Force 1 sneakers created a frenzy on the resale market, with used pairs selling for as high as $3,000 to $4,500, more than 10 times their retail price. Investors who get their hands on those limited sneakers early could make a fortune.
Purchase sneakers in bulk and resell at higher price
During major sales events like Black Friday, sneakers prices often get discounted substantially (i.e. 50% off or more). Investors can purchase popular sneaker models in bulk and stock them up. As the promotion ends and inventory runs low, investors can then relist those sneakers on secondary marketplaces at much higher prices for easy profits. This strategy allows large quick flips but requires sufficient upfront capital.
Invest early in potential hot-selling models
Getting in a sneaker investment early enables investors to secure pairs at lowest cost. They can then sell them later once the sneaker becomes sough-after in the market. For instance, investors could have stocked up on the sacai x Nike VaporWaffle sneakers for around $150 before it eventually resold for $500+. Identifying the next potential “hot” sneaker model requires keeping a pulse on sneaker trends.
Rent out sneakers to earn rental income
Besides trading sneakers like stocks, investors can also rent them out to generate rental income streams. Popular platforms like Unisport and Kyx allow investors to post their sneakers and have them rented out at specific daily/weekly rates set by the investors themselves. The rental approach provides more stable recurring cash flows for long-term investors.
In summary, investing in sneakers can be highly lucrative but also risky if without sound strategies. By investing early in potential popular models,bulk-purchasing on discount events, acquiring limited exclusives, and renting out sneakers, investors may fully capitalize on the sneaker investing mania.