Sneaker Brands Are Missing Out on a $10 Billion Industry

By Samantha Dersarkissian

Sneaker Brands Are Missing Out on a $10 Billion Industry


According to research conducted by Piper Sandler in 2021, the global sneaker resale market is worth $10 billion. Sneaker resale makes up nearly 25% of the global secondhand apparel market

Why Decision Makers Should Consider Branded Resale

  • Capture Sneaker Customer Data & Sales Analytics
  • Combat Counterfeit Product 
  • Build Community & Brand Loyalty

Capture Sneaker Customer Data & Sales Analytics

According to Gerald Flores, former editor-in-chief of Sole Collector, when brands own their own resale channel, “they’re able to capture more data points on what makes a hype sneaker.” Data like this can help brands understand how much product they should initially release or re-release. 

Re-releases of Yeezy’s collaboration with Adidas drove down the resale demand and price to a more reasonable level. By controlling their own branded resale channels, sneaker brands can have their finger on the pulse of resale trends without saturating the market. 

Combat Counterfeit Product

In 2018, Homeland Security Investigations seized $70 million worth of counterfeit Air Jordans from New York-based warehouses. Counterfeit sneakers are a huge problem within the sneaker resale marketplace. 

Many third-party resale platforms make promises that their products are authentic, but there are reports of fake products being sold on these platforms. For example, Nike has filed a lawsuit against StockX for selling fake sneakers, and The RealReal has sold a fake Dior shoe for over $1000.

While some customers discover they’ve purchased a fake product immediately, others may not. For those customers that remain in the dark, a poor quality knock-off could impact their perception of the brand, decreasing the overall brand reputation. Negative customer reviews, loss of sales, and loss of partnerships with distributors are all ways counterfeit products can impact a sneaker brand. 

Branded resale programs help shoppers feel secure that their purchase is authentic while introducing a new stream of revenue. 

Discover How Emerging Technology Could Change Authentication Processes. 

Build Community & Brand Loyalty

For many customers, sneakers are more than just a type of footwear. They’re a way to define their identity and symbolize membership in an exclusive community. Sneakerheads are a unique group with their own customs and language. It’s important for brands to create a sense of community when interacting with these customers.

Participating in sneaker resale gives brands more opportunities to create a community in retail locations. Breathe life into retail spaces that have lost foot traffic in the wake of the COVID-19 pandemic by creating incentivized resale events via experiential activation campaigns.

Attract new and loyal customers by partnering with local artists and sneakerheads in the community to create signage and displays. Entering the resale space makes it easier for brands to tailor their in-store experiences to sneaker culture, increasing revenue and promoting brand loyalty.

Taking a Cut of the $10 Billion Sneaker Resale Industry is Easy With a Recommerce Operating System

Trove partners with established brands, giving them the power to manage their brand equity within the resale marketplace. 

Companies like Allbirds are already using Trove’s Recommerce Operating System to create their own resale programs, allowing them to stay connected with valued customers. Allbirds uses its ReRun platform to encourage customers to trade in their pre-worn shoes for in-store credit. These prices can be set or powered by Trove’s pricing algorithms.

This encourages buyers to stay within the Allbirds ecosystem instead of selling and buying on the peer-to-peer market. The ReRun platform also aligns with Allbirds’ commitment to sustainability.

Sneaker brands can use technology to capture a larger share of the resale market, establish a community, and protect their brand equity from counterfeiters.

Profitable and sustainable growth is possible with Trove. Schedule a demo with us today!