Do street markets dominate the mainstream?
On any given Thursday, thousands of people can be seen flocking to the corner of west Hollywood’s redwood and north fairfax avenue. However, it’s not surprising if you know that the location of Los Angeles is one of the world’s six largest stores of street clothing giant Supreme.
Almost every Thursday, Supreme launches new collections in the street community. Excited shoppers, mostly young people, are waiting for hours to buy Supreme gear at retail prices.
The reasons are as follows: like many other contemporary street brands, high-end goods are worth more in the resale market. For many customers, reselling these devices has become a business and lifestyle.
A dealer Joseph declined to give his full name for privacy reasons, he entered the resale business because, he says, “my parents won’t buy high-end products, so I began to flip to make up for my cost in high school” to buy street clothes. When he graduated from the university of Joseph, he began reselling street clothes full time. Now he has his own platform, eluXive.
The resale industry has been on the rise. In addition to the original Internet arbitrage tool, eBay, apps like Poshmark and Depop have begun to merge the world of resale and social media.
Today the resale market is the most prominent part of the street clothes – a form of sports leisure fashion, production T-shirt, sports shoes and other apparel products, usually decorated with simple graphics and pop culture references.
Streetwear dealers, large streetwear or superanimal street members, are part of a multi-billion dollar market that is driven by a secondary market.
When Supreme was recently partnered with a well-known luxury brand, Louis vuitton, retail prices, resale prices and online hype were significantly higher than usual. A red Supreme and Louis Vuitton backpack retails for $3,900, according to StockX, a company that specializes in product resale value, but sells for $9,073.
According to Josh Luber, StockX’s founder and chief executive, the U.S. sneaker resale market alone is about $1.5 billion, a figure that does not include private sales on social media.
Despite the growth, there is nothing comparable to the 30 to 40 per cent growth in the market in early 2010, he said.
“Most of the super growth is based on more people coming into the market, and the sneaker brand is responding more and more,” he said.
But “at some point, you can’t add new people at the same speed… The sneaker brand is saturated, because it’s only 52 weeks old, and they’ve reached the highest level of four, five, and sometimes ten sneaker releases a week. ”
Despite slowing economic growth, however, the industry of October superstar forceful founder James jie biya has confirmed that the world’s largest private equity and alternative investment company one of the Carlyle group has acquired a forceful private equity. According to industry reports, Carlyle has invested $500m in a 50 per cent stake in the company.
The groundbreaking deal marks the first time an equity firm in this size and importance has invested in street markets. The deal is reported to be worth more than $1 billion. If the evidence on social media is overwhelming, the investment suggests that street markets are moving into the mainstream.
What makes this industry different is that both the retail and resale markets are heavily dependent on internet-driven hype and are therefore called superhype.
Hypebeast was originally a derogatory term for people who were obsessed with trends, and the popular blog turned to the name of the empire, and many people thought it was one of the first influents of the street resale business.
Founded in 2005 by Kevin Ma, a Canadian, the site produced the latest release of sneakers and street clothes, a niche in the men’s fashion market at the time. Now, hundreds of Facebook groups and blogs are dedicated to promoting the hype surrounding this cultural and commercial phenomenon.
Most hype is the result of a marketing strategy adopted by retailers. Supreme has made a significant contribution to the street retail culture through its unique intermittent “drop” sales techniques – or sometimes a one-time release of a product or an entire product line.
Part of the hype comes from a very limited advertising strategy. Silence in the eyes of the public, limited sales, almost never replenishing the stock continues to create high demand.
These strategies help to enhance the unique feeling of the brand that attracts people. Combined with the hype on social media, Supreme’s sales rate is almost 100%.
Part of the recent mainstream success of the street clothing industry can be attributed to the collaboration between streetwear and luxury brands and celebrities. These can include all types of cultural ICONS, from sports brands such as The North Face and Fila to musicians such as Justin Bieber and Kendrick Lamar, as well as brands such as Betty Boop or The Simpsons.
Many cultural ICONS, especially hip hop musicians, have created their own street brands, such as Drake’s OVO or Kanye West’s Yeezy. The collaboration between all these celebrity brands and other street retailers has created greater demand and interest.
Although the industry generally believes that street clothing is only popular among teenage boys, Jason Mueller, a dealer, says the connection with hip-hop culture has enabled him to participate in the business. “I’m married, three kids, I own my house, I live in ‘burbs, I think you can say, but I’ve been a DJ for more than 20 years, and with the growth of hip-hop… So it’s just part of the subculture, I think. ”
Muller confirmed that it is not just young people who are using the resale market. “I bought from agent, I already talk to me this age paragraph the person – I am 38 years old – if not older, this can help them pay for kids’ college,” he said.
However, people like mill are often sold with young entrepreneurs, such as Brian Ong, a full-time college student who sells street clothes.
Many young people like Ong and students earn consistent profits through the business. Mr. Wang said he thought “it would be fun… It’s like a business.” Now he says he earns more than $150 a week to sell street clothes, while maintaining the full curriculum.
But how do people like Ong get those goods that are in great demand and are so exclusive? Ong says he and many other people’s secrets are robots.
An Internet robot is a software application that runs automated tasks, such as automated checkout procedures on crowded retail sites during a much-anticipated decline.
The most basic robots can be as low as $1.99, with Google browser extensions and some of the most highly rated robots up to $325. AIO Bot, one of the more expensive and popular robots, claims it has “helped trainers sell more than 40,000 limited edition sneakers”, with total customer resale value approaching $18 million.
Industry insiders are curious about the use of robots. Ong said he used a robot called Supercop for $100. “It’s very simple, easy to use, and most importantly, the price is reasonable. I like it.”
But muller has a different view: “robots are stripped from the whole culture… Let people who don’t necessarily have money buy retail capabilities from a resale perspective.
Retailers are already aware of their complaints about robots. Most websites do not explicitly ban robots, but there are more general terms of service that prohibit resale. This allows the site to block the individual IP addresses associated with suspicious purchase links.
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For example, Supreme’s terms of service stipulate: “you can buy products for personal use only and not for resale. By placing an order, you prove that the product you purchased is for personal use only and not for resale. Refuse to accept any reason without explanation. “
Retailers can use different strategies to prevent the spread of the bots, including “ghost trucks” – as a result of suspicious activity quickly and before we settle the checkout to empty the shopping cart – or through a permanent stop IP address listed in the blacklist repeat offenders. But as technology continues to grow, robots are becoming harder to find.
Joseph, a reseller who created his own resale platform, said that zombie users “technically complied with all the terms of the site, but they were a bit of a gray area.”
“I’m a bit of a chase, so I like to go out and get to know what other people are doing,” said Joseph.
For now, retailers and dealers seem to be in a holding mode, tweaking and improving their respective technologies each time. While these retailers appear to be anti-robots, it is not hard to see how the use of the technology will help keep up the hype surrounding these products. That’s a huge benefit to the growing demand for street clothes, which means that robots are not going anywhere, at least for now. And they’re not dealers.