As we see luxury fashion encroaching into streetwear, there is one item that has become increasingly popular among the well-dressed.
Sneakers.
They can now be regarded as among the footwear of choice for the affluent. And with a price tag of up to thousands of ringgit or even ten thousands, designs by big brands are no longer something the masses can necessarily afford.
Fashion houses like Dior and Louis Vuitton have all collaborated within the community to release limited edition sneakers. Their new launches have often sold out within mere hours or days.
The buying and reselling of sneakers have also become a lucrative business.
There are plenty of platforms springing up that offer sneakerheads the chance to make money out of their hobby.
Founded in 2015, Goat now posts a gross merchandise value (representing the total volume of goods sold) of US$2 billion (RM8.5 billion) over the past year as sales of sneakers surged.
An example closer to home is Novelship. It was created in 2018 as a digital marketplace for Singapore’s streetwear enthusiasts, but it has seen its customer base expand to include those from other neighbouring countries within South-east Asia.
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Sneakers are said to make up the vast majority of Novelship’s sales at any given time period – or more specifically, as the company reveals, 80% to 90% of the site’s transactions come from sneakers.
Since tapping into the Malaysian market in 2019, the site has seen a 2,400% increase in the number of users. They have over 120,000 active users on their platform to date.
Interestingly, before such sites existed, people had to advertise online using forums and such, just to resell sneakers.
Now, they can minimise the risk of scams and avoid shady dealings by using proper platforms. This change could have contributed to the surge in popularity of sneakers as a valuable commodity.
Rise in popularity
Sneakers are undoubtedly popular right now. The question is, what makes them so valuable? Also, how can a pair be considered worthy of the “luxury” tag?
Founder and CEO of Novelship, Richard Xia, explains that it is more about the brand.
He says sneakers released from existing high-fashion brands like Alexander McQueen, Balenciaga, Common Projects and Gucci are the ones fetching a high price.
“In most cases, a limited edition Air Jordan 1 would not really qualify as luxury sneakers, however there have been exceptions,” he comments.
“For example, in 2020 Dior partnered with Air Jordan and released the Dior x Air Jordan 1 High which retailed for US$3,000 (RM12,731) and routinely (re)sells for over US$10,000 (RM42,438) today.”
According to him, the blurring of lines between “high” and “street” fashion has helped spurred such collaborations.
The buying and reselling of sneakers can be something frowned upon though. Like those who snap up concert tickets then resell them at a markedly higher price, people who buy out sneakers to make a profit from the secondary market are considered by some as annoying scalpers.
Xia however claims that this is not something uncommon – even before the rise of resale platforms.
“In the past, large resellers would work directly with retail employees to reserve stock at a slightly elevated price and then flip their inventory throughout the local community,” he reveals.
He says that bots are being used now. They are essentially programmes developed by users that monitor websites like Nike SNKRS and quickly buy up inventory as soon as it is released.
“Generally, the community is quite divided in terms of their opinions here. A lot of collectors hate resellers, and a lot of resellers are also collectors themselves, using their resale funds to fuel their hobby and collect more,” he adds.
“Some will consider this business. Others will blame companies like Nike for not putting a stop to these practices. At the end of the day, it really depends on who you’re speaking to and their recent success or losses copping the sneakers they want.
That said, the brands themselves are seen to have benefitted from the rise of resale. Xia notes that the hype has increased their sales exponentially over the past half-decade or so.
A ready market
There is a market for sneakers on a global scale, but is Malaysia also part of this whole craze?
Xia says that Malaysians have not been left out. He points to Sneakerlah in Kuala Lumpur, an annual event that has brought together nearly thirty-thousand attendees over the course of one weekend.
As difficult as it is to believe, Malaysians are truly forking out an incredible amount of money for sneakers.
Terry Lim, an 18-year-old collector from Ipoh, says he has spent between RM7,000 and RM8,000 on a pair of sneakers before.
He sees the community in Malaysia growing bigger every year as more people are getting drawn to it.
“My interest in luxury sneakers began when I saw a business opportunity to resell them. Then, I slowly fell in love with it,” Lee relates.
He believes online platforms that allow for reselling of sneakers has helped the scene grow. His friends and family did not initially understand, but they are now on board with his hobby
“At first, they were skeptical about spending up to RM2,000 on a pair of shoes, and if it is really worth it. But after showing them the market price on online platforms, and explaining about the sneakers culture, they slowly became more receptive to the idea.”
Jonathan Lai from Kuala Lumpur claims that his family is supportive of his interest in sneakers. He says that it even garners admiration and respect from friends.
Read more: Streetwear is now fashion's new luxury, and Malaysia isn't left out of the scene
He is happy to see the local community in Malaysia flourishing, as well as more people becoming passionate about sneakers.
For him, it began at a young age.
“It all started with the love for basketball, and Michael Jordan being the centre of it all,” Lai, 35, says.
“I guess being able to own a pair of Jordan brand sneakers is a dream for most kids growing up in the era of the Chicago Bulls or Michael Jordan.”
His most expensive purchase? A pair of Nike Air Force 1 x Off-White, which is currently going for around US$1,000 (RM4,237).
Lim and Lai are just two examples of the apparently growing sneakerhead community here in Malaysia.
Citing data presented by buyshares.co.uk, AFP reported last month that the global sneakers industry is forecast to grow by 30% in the next four years and hit US$102.8bil (RM435.6bil) value by 2025.
With that kind of market share being projected, it is no wonder that a lot of people are now interested in buying, collecting and reselling sneakers.
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