The State Of Sneakers In 2022

February 01, 2022

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Hey Friends,

The sneaker resale market in the United States is already a multi-billion-dollar industry, and most experts believe it could be worth nearly $30 billion by 2030.

Online marketplaces like GOAT and StockX have ridden the wave and garnered valuations near $4 billion. Still, given the shift we are seeing toward digital communities, there might not be a business that fascinates me more than SoleSavy.

SoleSavy is a community of sneaker enthusiasts that helps its members navigate the complex world of shoes, including drops, news, rumors, and more.

They are based in Vancouver, have raised nearly $15 million in seed and Series A funding, and they have 50+ employees & more than 5,000 members as of last summer.

The general pitch is that SoleSavy helps like-minded people communicate via group chats, enabling them to buy, sell, and trade with each other while periodically offering limited sneakers to members at retail prices.

Their website says, “SoleSavy is for people who want to buy sneakers for retail and avoid resell, not those who flip sneakers for profit.”

It’s a fascinating business that is growing fast, and we’ll probably run through the economics at some point in the future, but they recently released a comprehensive report on “The State Of Sneakers” that I thought was interesting.

You can access a copy of the report here, but since it’s nearly 40 pages long, I’m going to use today’s newsletter to pick out a few things I thought were interesting.

Let’s get right to it.

The Four Kinds Of People In Sneaker Culture

SoleSavy surveyed 3,5000 people inside the sneaker community, asking them to self-identify within sneaker culture, and four main types of people emerged:

  • Sneakerheads

  • Trend Hunters

  • Collectors

  • Resellers

Here’s how they define them:

Sneakerheads are passionate about almost all aspects of the sneaker/streetwear community and culture. For this group, sneakers are function as well as fashion — whether that function is comfort or more of a if-you-know-you-know nod to fellow sneakerheads — and they proudly wear their shoes. Sneakerheads are typically the most social group and they seek likeminded people who share their interests and hobbies.

Trend Hunters (also known as Hypebeasts) are interested in sneakers because they are a big part of fashion and self-expression, but they don’t go as deep into sneaker culture. They are here because they like to have their finger on the pulse of trends as an integral part of their interest in fashion overall.

Collectors skew a bit older and are interested in the history and story behind their favourite sneakers. Their focus is still on the shoes, but more as artifacts than a fashion accessory. They might consider themselves curators or even protectors of not just sneakers, but of the culture that collects knowledge and information, and are more than willing to share that knowledge with others.

Resellers purchase sneakers and sell them for a profit because they realize their value and potential. The act of reselling has long been a part of sneaker collecting, but in this case, we are referring specifically to people whose intent is to use sneakers as an asset, a business and a way to make money, often through nefarious or exploitative means. Many resellers are new to sneaker culture, drawn in by hype and the ease by which they can use technology to flip shoes for a profit. They also likely buy graphics cards, gaming consoles and anything else that might be in low supply and high demand.

The Demographics Of Sneaker Enthusiasts

Based on the results of the SoleSavy survey, the majority of sneaker enthusiasts are male and under the age of 40, with nearly 80% of them having a college degree and more than 50% having an annual income of $60,000 or greater.

“The findings of this study paint the typical sneaker enthusiast as a 33-year-old male with plenty of disposable income. He’s well educated, having completed some form of post-secondary education, works in a professional career and lives in a major metropolitan area.”

And most sneaker enthusiasts said that their interest in the space originated from professional sports, specifically basketball, which makes sense given that Nike and Jordan Brand are two of the biggest brands globally.

The Rise Of Online Communities 

The COVID-19 pandemic accelerated the shift from physical to digital within nearly every industry imaginable, but with the sneaker community historically being dominated by retail store drops, meet-ups and events, the online community has thrived.

Here are a few interesting stats from the survey:

  • Over 80% of respondents said that online communities help them feel connected to the broader sneaker community.

  • About 60% of respondents say they have extended their online friendships into the real world, connecting with others on social media or through meet-ups.

  • Over 60% of respondents say they find most of their sneaker community now in forums dedicated to sneaker collecting.

The survey also asked where sneakerheads find community in a post-COVID-19 world — here is the answer:

  • Instagram: 74%

  • Reddit: 61%

  • Sneaker blogs: 56%

  • YouTube: 49%

  • Private or paid communities: 45%

In total, sneaker enthusiasts are currently “spending 2–4 hours a day on average interacting with their online community of choice, with more than half saying the sneaker community has gotten stronger and more cohesive during the pandemic.”

Sneaker Collections Continue To Grow

With brands pumping out more new releases than ever before and a high velocity of money entering the space due to the increase in household wealth since the pandemic began, sneaker fanatics are collecting more shoes than ever before.

  • 38% of respondents have 25-75 pairs

  • 26% of respondents have 75+ pairs

Now, over 70% of sneaker enthusiasts are buying at least 1-4 pairs monthly, which works out to about 12 to 48 pairs annually.

And here’s how they are funding their sneaker collection:

I hope everyone has a great day. I’ll talk to you tomorrow.

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