There is no denying the fact that the price of sneakers is increasing day by day. There are even towering versions, worth more than a laptop or even a car. However, the sneaker market is still moving extremely strongly and shows no signs of stopping. There are even people who sacrifice their daily life to buy multiple versions of Air Jordan just to fulfill their wish.
Why is the price of sneakers so high?
Brands push the retail price of sneakers higher and higher
The chart below shows how the retail price of sneaker versions has increased over the years. The reason for this phenomenon may lie in rising material prices, rising wages or simply inflation. Maybe these are just “fallacious” reasons that companies bring because for a long time, consumers often have the mentality that the higher the price of the shoes, the better the quality?
In addition, increasing the price of sneaker versions to match the psychology of buyers who want to discount is also a common method used. For example, a pair of shoes after calculating the costs of production, advertising, branding, etc. Probably sold at a price of 1 million dong, it will be raised to 1 million and 250. After a period of launch, the shoes will be sold at a discount of about 20% (so the remaining price is about 1 million). Obviously with this approach, the company will almost still make a profit despite the price reduction. And after a one-year period, whether the shoes were 40% or 50% off, the revenue from the first pair of shoes sold helped the brands make up for that loss.
With more and more sneaker versions being released, consumers want to pay more for higher-end products
Every day, there will be at least a few new sneaker versions released so much that even consumers don’t need them. Therefore, the selection process becomes more necessary and thorough. Users will tend to choose premium, rare versions with the desire to be special. And this is the time for shoe stores to have an excuse to increase retail prices.
For example, around the time of May-June every year, Air Jordan releases a lot of new colorways featuring the Jumpman logo. However, in many of those color schemes, there will be 1 or 2 premium special editions with very high prices. Typically, the Air Jordan 5 “Take Flight” retails for up to $400 USD. In addition, if you look at it from another perspective, every year brands launch many different versions of sneakers for a variety of purposes, users are sure to always aim to own a pair in addition to normal shoes. really special shoes like Air Jordan products, or Yeezy or valuable collab versions.
Hype machines are real when there is so much demand while the supply is quite limited
One thing that is certain that companies that have started will never ignore are products that create hype. Typically there are adidas Yeezy BOOST, Air Jordan 10 OVO, Ultra BOOST all white, Air Jordan 1 Bred… These sneaker versions are usually released in limited quantities, after being retailed, some are used for collection. , some are used to resell at sky-high prices. So why is the resell price so high? Because of the difference between supply and demand.
Whenever a pair of shoes is onfeet by certain celebs, it immediately becomes a fever and leads to a continuous increase in demand. Meanwhile, brands of course never release a valuable version in large numbers, partly because they want to give the opportunity for further releases, partly because they want to push the price even higher. It is for this reason that the price of shoes will almost always be pushed up.
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