Re-commerce: Should retailers feel disposed by the growth of second-hand market?

The research paper presents the concept of the reselling of sneakers. The purpose of the study was to investigate perceptions towards second-hand and identify the brands that command the highest goodwill (price-premium) in the secondary market. Sanchit identifies key factors - innovation, age of the shoe, influencer endorsement & blog presence and establishes the drivers that have the highest impact on price premium of a release.

- Sanchit Jaisinghani

What intrigued you to towards sneakers?

My introduction to ‘sneaker-culture’ was on a trip to New York, where I saw people fanatically lined up for 3-4 blocks, awaiting the release of a “Yeezy”; a sneaker released by Adidas in partnership with rapper, Kanye West. On deeper probing, I realized that sneaker launches are an exclusive event, and the possessors of the pairs might hold onto to their possession for decades to come but also some of them sell to the fans who couldn’t attend, for over four times their price”.

What motivated you to undertake this study?

I did not witness sneaker craze until my first year of University. Here, my friend and I were stopped by a fellow student, who was willing to pay my friend £600, for a pair of one-year-old used sneakers which had costed him £220. This bewildered me by piquing my interest; made me question the economics behind the demand for collectable sneakers, what influences this demand and which brands command the strongest resale prices.

Where did you collect your data from?

Data was collected from the interviews done with individuals in the age range from 12 plus to 60, living in London. Results showed that affordability, quality and design variety are the factors that affect second-hand trade. It was also found that MEN are the major consumers of second-hand shoes. The young aged stated that they purchase these second-hand shoes as they find them as more fashionable items.

MILESTONES IN SNEAKER-CULTURE