SHANGHAI - Forget stocks, real estate, even cryptocurrencies - China's hottest investment nowadays may be the Nike, Adidas, and Puma basketball shoes that"sneakerheads" such as Mr 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 Mr Hu, who travelled 300km 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, Mr Hu secured the right to plonk down 1,299 yuan for a pair.
The phenomenon is spurring quick growth in Chinese sneaker-trading platforms such as Poizon, whose annual volume is around 15 billion yuan, according to Chinese tech consultancy iiMedia Research.Platforms like Poizon and Nice also have attracted hundreds of millions of dollars in investment from foreign and domestic venture capital, according to Chinese media reports.StockX rival GOAT launched an app-like mini-programme on leading Chinese messaging platform WeChat in July.
Mr Liu 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. "The stock market is risky and the property market is frothy, so investors are switching to speculation in the consumer sector," said chief analyst Zhang Yi at iiMedia Research.