China cracks down on speculative trading in limited edition shoes, but ‘sneakerheads’ continue to fuel phenomenon
- People’s Bank of China has said that speculative buying of limited edition trainers had become a problem and warned speculators against using more than a dozen online platforms
- Growing popularity of sneaker trading has seen Sneaker Con launch its first event in Shanghai and US-based marketplace GOAT launch a China-specific app
In April, David Zuo’s students told him about the latest money making craze sweeping across China: reselling limited edition athletic shoes. Since then the 34-year-old Zhejiang sports teacher has made about 100,000 yuan (US$14,320) trading rare trainers online such as Nike Air Jordan’s and Adidas Yeezy’s.
The growth of digital platforms, fuelled by a nation with growing disposable income and a deep love for basketball, has created a buying frenzy in a secondary market of trading shoes much like stocks.
China’s central bank is now trying to douse the latest speculative fire among “sneakerheads”, which could grow into a multibillion dollar industry.
“With a growing middle class, purchasing power keeps increasing and people would chase for limited editions,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai in Hong Kong.
“For them, it is a fashion and investment. As prices are surging significantly, people will choose to resell the shoes rather than wear them. Some even believe it is more exciting than buying stocks. This makes the sneaker resale market even more popular.”