Recently, Stock X, the immensely successful sneaker reseller, became the first company of its kind to earn a billion-dollar valuation. The numbers behind that are immense: the Detroit-based company recently raised $110 million in venture capital, and last year they did about $2 million dollars worth of business per day, around $700 million in total. Business for the reseller—who takes a 9.5 percent cut on sneaker transaction and a 14.5 percent cut on jewelry and streetwear—is booming.
StockX's rise—and soaring stock price—have given future projections of the whole resale industry a huge boost. The investment bank Cowen estimates that the marketplace will be worth $6 billion by 2025, up from the $2 billion it's worth today according to The New York Times. Other resale companies like GOAT and Stadium Goods stand to benefit, as well.
Scott Cutler, one of the executives at StockX, acknowledged that the changing marketplace is leading to brands being forced to pay more attention to resellers, saying: "Nike, Adidas, Louis Vuitton, Gucci, Rolex, whatever it is, they’re certainly not ignoring marketplaces and are not naïve to the fact that their distribution channels are evolving."
It will be interesting to see if the market trends continue to evolve in the direction that is being predicted. As of now, however, resellers like StockX are set to conquer the world of sneakers and streetwear.
