China's hottest investment: overpriced sneakers

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Resale profits for branded shoes like Air Jordans or Adidas Yeezy approach 5,000%. FMTNews China

SHANGHAI: Forget stocks, real estate, even cryptocurrencies – China’s hottest investment nowadays may be the Nike, Adidas, and Puma basketball shoes that “sneakerheads” like Hu Huaiyuan fight to get their hands on.

“The sneaker market is no longer just a game for enthusiasts. Speculators are flocking into the business now,” said Hu, who travelled 300 kilometres to Shanghai for the chance to buy the latest Nike Air Jordans.After winning an online lottery for the right to even show up at a Nike store along with around 400 others vying for limited supplies, Hu secured the right to plonk down 1,299 yuan for a pair.

The global market is taking notice. StockX rival GOAT launched an app-like mini-programme on leading Chinese messaging platform WeChat in July. StockX executives say they also are crafting China plans. He now has a loose network of people in the United States and Japan who, for a fee, apply on his behalf in online lotteries for new shoe releases, or queue outside stores.

Volumes are chugging along despite a Chinese backlash against the NBA last month, triggered when a Houston Rockets executive tweeted a message supporting Hong Kong protestors.

 

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