How the market works

The sneaker market has a primary layer and a secondary layer. The primary market is retail: Nike, Adidas, New Balance, and the boutiques that carry limited releases. Access to the most desirable pairs at retail requires either luck in raffles, relationships with boutique staff built over years, or willingness to queue. The SNKRS app has made Nike's limited releases into a lottery that most participants lose

The secondary market is where the economics of the category are most clearly visible. StockX operates as a stock exchange for sneakers: anonymous buyers and sellers, authenticated by the platform, prices set by the market. GOAT and Flight Club offer similar authentication with slightly different buyer experience. The premium over retail on a highly sought colourway can be several multiples of the retail price in the first weeks after release

That premium compresses over time for most pairs as supply from closets enters the market.

CollectorGrade take

The retail-to-resale premium on a new release is at its highest in the first weeks after launch. For pairs you want to wear, buying at peak resale is usually the worst time. For pairs you want to hold, the entry point matters significantly to any eventual return.