Nike sells shoes. Lots of them.
But I had no idea about the 10’s of thousands of rabid “sneakerhead” collectors who comprise an aftermarket conservatively worth $1.2 billion per year in the US alone!
A market artificially created by Nike by limiting supply. One that’s made them billions in profits.
This TED talk by Josh Luber details how Nike created a marketing method the likes of which has never been seen before. And why the Air Jordan 3 Black Cement released in 1988 might be the most important sneaker in history.
Keep any eye out for a fascinating application of the 80/20 rule where Nike accounts for 96 percent of all shoes sold on the secondary market. (96% is 20% of the top 20% in the 80/20).
And those “resellers” made almost twice the profit of their closest competitor, Adidas!