A New Coined Term Combining Shoes + Investment
Choosing Limited Edition Sneakers from Brands
Reselling at Higher Prices for Profit
Gen Z Missing 'Shutech' Says "Healthier Than Coins and Stocks"
Some Criticize, "Only Genuine Buyers Suffer"
Last year, the sneaker exhibition hall at COEX in Gangnam-gu, Seoul. The photo is unrelated to specific expressions in the article / Photo by Yonhap News
[Asia Economy Reporter Lim Juhyung] Recently, the so-called 'Shu-tech' has been gaining popularity among young people in their teens and twenties. Shu-tech, a portmanteau of shoes and financial technology, refers to the act of purchasing limited-edition shoe products and then reselling them at a higher price to enthusiasts or collectors to make a profit. There are even mobile applications specifically created for those who engage in Shu-tech.
Shu-tech has become a major topic among Generation Z (those born between 1994 and 2010) over the past three years. According to an analysis of social networking services (SNS) such as Twitter by the Korea Consumer Agency on the 15th of last month, mentions related to secondhand transactions by Generation Z users increased more than twofold from 1,183 in 2018 to 2,947 last year.
Additionally, mentions related to so-called 'resell' activities involving limited-edition sneakers rose by 43%, from 15,247 to 21,802 during the same period.
Limited-edition sneakers are released by shoe brands for promotional or event purposes. Typically, only a few hundred pairs are sold at once, and once sold out or after a certain period, they cannot be purchased again, making them rare. Shu-tech refers to the practice of selectively buying these limited-edition products and reselling them at a higher price. A similar term is 'resell-tech.'
Last March, when a department store in Seoul opened, waiting customers entered in what is called an 'open run' / Photo by Yonhap News
Purchasing limited-edition products is essentially a 'first-come, first-served' basis. The earlier one applies on the official website or enters the store selling the product, the higher the chance of securing the limited edition. As a result, on SNS platforms popular among the teens and twenties, posts sharing information about limited editions are circulated, and a trend called 'open run' has emerged.
Open run is a slang term referring to the act of waiting near a store scheduled to sell limited-edition products and rushing to buy the product the moment the doors open. The term 'run' is used because people dash out simultaneously as soon as the store opens. Sometimes, scenes unfold where people set up mats and tents near the store from the night before to wait.
Customers lined up in front of the luxury goods hall at the Lotte Department Store main branch in Jung-gu, Seoul, last May / Photo by Yonhap News
With the popularity of Shu-tech and resell-tech, dedicated mobile apps that assist the resell process have also appeared. These apps not only help users find and purchase or sell shoes by brand, color, and size but are also reported to provide 'authenticity certification' from the manufacturers who release the limited-edition products.
Generation Z youths who are enthusiastic about buying limited-edition sneakers argue that Shu-tech is a much 'healthier' investment compared to stocks or real estate.
Park (18), a high school student who earns pocket money through Shu-tech, said, "Even if limited-edition sneakers are expensive, they usually cost between 100,000 to 400,000 KRW, which students can afford. Also, even if I fail to resell, I can consider that I own the sneakers, so it's not really a loss. Isn't it more practical than investing in intangible Bitcoin or stocks and real estate where you could lose money?"
On the other hand, as the Shu-tech market grows, there are concerns that the value of limited-edition shoes is excessively inflated, causing harm to actual consumers. Choi, a worker in his twenties, said, "A 200,000 KRW sneaker can jump to 3 to 4 million KRW in the resell market. People who do Shu-tech are aiming for such profits. You end up competing with people who are only after money, not those who genuinely want the product, so only the real fans of the brand suffer."
Experts analyze that Shu-tech is gaining popularity because it aligns with the interests of both brands and consumers.
Professor Eunhee Lee of Inha University's Department of Consumer Studies explained, "Overseas, online malls specializing in resell and Shu-tech have already launched, and recently, e-commerce companies in Korea have also entered the market, showing signs of activation. This is because the market outlook is positive. Shu-tech can be a powerful SNS marketing tool for brands, and for consumers, it satisfies various desires including collection, showing off, and investment, which is why it is popular."
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