Invest in Sneakers

In the world of investments, the concept of "Blue-Chip" assets typically conjures up images of established, financially robust companies that have stood the test of time. 

However, in recent years, a new category of Blue-Chip assets has emerged, and they're not stocks or bonds. Instead, they're sneakers – iconic items that have become highly valuable due to cultural shifts, celebrity endorsements, and savvy marketing. 

Today, sneakers have firmly established themselves at the intersection of fashion, art, and collectables, leading to a thriving secondary market.

And now, thanks to Splint Invest, you also can put your foot (pun intended) in the sneaker investing game. Learn how to invest in sneakers with us and leverage the potential of this growing alternative asset.

Why invest in sneakers

Sneakers have come a long way since their humble beginnings as athletic shoes. Ever since Jordan signed his deal with Nike in the late 1980s, sneakers have been seen as something one can not just wear but also collect and sell. 

Fast-forward to today, and the sneaker resale market is booming. As we speak, more investors are entering the scene, hoping to get a piece of the sneaker pie. 

The question is: why? 

There are plenty of reasons, including:

A thriving market

The market for sneakers is robust and expanding. The numbers speak for themselves:

By the end of 2022, the global sneaker resale market was estimated at $10.6 billion and is expected to grow to a whopping $51.2 billion by 2032, increasing at a CAGR of 16.4% between 2023 and 2032 (Market Decipher).

This growth is driven by several factors. The most significant one is, of course, easy access to digital marketplaces. Platforms like GOAT Group, StockX or Flight Club have made buying and selling rare sneakers a breeze for fellow sneakerheads and investors.

Social media have also played their part. The hype around popular sneaker brands like Nike or Adidas has never been stronger, mostly thanks to influencers. 

Speaking of sneaker brands, we’ve seen a flood of limited-series sneakers and collaborations with popular brands like Marvel, DC, and Star Wars for the past few years. Such collections are highly coveted by collectors, fuelling the resale market. 

Low entry barrier

Unlike some other alternative assets, like luxury cars or art, for example, investing in sneakers requires a much lower initial capital. Sneakers, even limited series, typically cost from several to a few thousand dollars for some really exclusive collections. 

Finding sneakers to flip isn’t rocket science, either. The digital landscape is full of forums and social media groups for sneakerheads, providing tons of resources for identifying the right shoes to buy. 

Also, to buy a pair of sneakers, you need only head to the store (online or physical), find the pair you want to buy, and then purchase it. 

Indeed, compared to many other alternative assets, investing in sneakers is a child’s play. But that doesn’t mean it’s without pitfalls and risks. More about those later.

High potential for returns

Rare and vintage sneakers can yield incredible returns, often for a minimal initial investment. If you need more proof, here are some of the recent notable sneaker auction results we came across:

• Jordan 1 Retro High Off-White Chicago - Achieved an annualised return of 116% over the past five years.

• Nike Air Mag Back to the Future - Fetched $92,100.

• Nike SB Dunk Low Paris - Sold for $51,950.

• Nike Air Yeezy 2 Red October - Achieved a sale price of $15,000.

• Nike Dunk SB Low Freddy Krueger - Fetched $30,000.

• Air Jordan 11 Jeter - Sold for $40,000.

• Nike Air Yeezy 1 Grammy Prototype - Sold for $1.8 million.

• Nike Air Jordan 4 Eminem Carhartt - Achieved $30,000.

• Nike Air Force 1 Entourage Undefeated - Fetched $20,000.

• Nike SB Dunk Low What The Dunk - Sold for $5,000.

High liquidity

Sneakers aren’t just easy to buy. They are also straightforward to sell, offering much higher liquidity than, for instance, fine wine or art. The internet is full of digital secondary marketplaces, and the sneakerhead community is constantly growing, providing you with tons of opportunities to flip sneakers for profit. 

Sneakers vs other popular alternative investments

How to find the right sneakers to invest in

When it comes to sneaker investments, making the right choice requires a combination of research, timing, and insight into the sneaker market. Here's how you can find the right pairs that offer the best potential for growth in value:

Opt for popular brands

Brands like Nike, Adidas, and Jordan have established themselves as leaders in the sneaker industry. Investing in these well-known names is generally a safer bet since they consistently release highly sought-after models. 

Sneakers from these brands, especially iconic lines like Air Jordans, Yeezys, and Off-White collaborations, tend to appreciate value over time.

Look for limited editions & collaborations

Sneakers with limited production runs or exclusive collaborations often hold their value or increase in demand over time. These pairs are often highly coveted due to their scarcity and the unique design elements brought in by collaborations with celebrities, designers, or other brands. Examples of valuable collaborations include Nike x Off-White, Adidas x Pharrell, and Travis Scott x Jordan.

Stay up to date with trends

The sneaker market is driven by trends, cultural movements, and shifts in consumer preferences. Staying informed about the latest releases, hyped drops, and emerging designers can help you spot investment opportunities early. 

Follow sneaker blogs, forums, and social media channels to keep your finger on the pulse of the sneaker community, ensuring that you're aware of upcoming drops that have the potential for strong resale value.

How to invest in sneakers

Knowing how to locate the right sneakers to invest in is one thing. Another is learning how to invest in them. Regarding that, you have three primary options - buying and selling at online marketplaces, hunting sneaker auctions, and leveraging investment funds. Each option has its own pros and cons, but which one is right for you? 

Online marketplaces

Sneaker marketplaces such as StockX, GOAT, and Stadium Goods offer an accessible platform for buying and selling sneakers. 

These marketplaces act as intermediaries, ensuring authentication and quality control, making it easier for investors to purchase sneakers confidently. Additionally, with robust resale analytics, these platforms also allow you to track the performance of various sneakers, providing insight into the most promising investments.

The downside is that such marketplaces typically charge fees and commissions for sales, eating into your potential returns. 

Online auctions

Sneaker auctions are a great way to acquire rare and valuable sneakers. Platforms like StockX and GOAT often host special auctions for high-demand, limited-edition pairs, allowing buyers to bid against each other. 

Traditional auction houses like Sotheby’s and Christie’s have also entered the sneaker space, auctioning off rare collector’s items. Depending on demand, auctions can sometimes offer unique opportunities to acquire sneakers below market value or at premium prices.

On the other hand, though, the competitive nature of auctions often drives sneaker prices up. If you’re not careful, you might wind up paying a lot more for a pair of sneakers than you would’ve done initially. 

Sneaker investment funds

For those who prefer a more hands-off approach, sneaker investment funds have emerged as a way to invest in the market without buying and holding individual pairs. 

These funds pool money from multiple investors to purchase high-value sneakers, which are then sold for profit. Funds like Rares allow investors to buy shares in specific sneakers or portfolios, offering a diversified, lower-risk option for sneaker investment.

A perfect example is our very own Splint Invest, which offers alternative investors exclusive access to pre-vetted sneaker funds. By investing with us, you don’t need to spend hours researching pairs to invest in or deal with sellers spiking up the prices. 

What are the risk factors to consider

The sneakers market is not without its risks. If you’re serious about investing in rare sneakers, considering the following potential pitfalls is a must:

• Misrepresented items. Sellers may inaccurately describe or present sneakers, leading buyers to invest in products that do not match their expectations in terms of condition, authenticity, or rarity. Thorough inspection and verification are necessary to avoid such pitfalls.

• Counterfeit sneakers. The sneaker market is flooded with counterfeit products, especially for high-demand, limited-edition releases. Spotting fakes can be difficult, even for seasoned collectors, so purchasing from trusted platforms that authenticate sneakers is essential.

• Market volatility. The value of sneakers can fluctuate based on trends, cultural movements, and consumer demand. What’s popular today may lose value quickly, making it hard to predict long-term returns. The sneaker market can be highly speculative and unpredictable.

• Overproduction and market saturation. As more brands and collaborations enter the market, there is the risk of overproduction or market saturation, which can reduce scarcity and, in turn, lower the potential value of certain releases.

Invest in sneakers with Splint Invest

Despite their risks, sneakers offer significant potential. With Splint Invest, investors can diversify their portfolios by investing in various asset categories, including sneakers. 

Each investment opportunity undergoes extensive due diligence and is validated by an experienced team, ensuring security and authenticity. The sneakers sourced by Splint Invest come from trusted partners with a proven track record, and all assets are securely stored and insured in freeports and vaults. 

Create your free account today and invest in sneakers with Splint Investment for as little as €50!