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 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, Hu secured the right to plonk down 1,299 yuan for a pair.
The phenomenon is spurring quick growth in Chinese sneaker-trading platforms like 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.
According to iiMedia research, China's secondary market for sneakers has passed US$1 billion this year and is one of the fastest-growing components of a US$6 billion global market AFP/STR Focusing on only the most sought-after models such as Air Jordans or the Adidas Yeezy, a collaboration with American rapper Kanye West, Liu estimates his monthly net profit is 50,000 yuan per month.But he actually avoids China's market due to the stiff competition.According to data-mining company iiMedia research, China's secondary market for sneakers has passed US$1 billion this year and is one of the fastest-growing components of a US$6 billion global market led by the United States.