What Is 'Resell' Investment... Racing Desperately to Buy Sneakers

Limited Edition Sneakers 'Resell' Craze Intensifies
Profiting from Selling Scarce Goods at High Prices
Popular Among 1020 Generation... Resell Specialized Platforms Emerging
Some Warn "Real Collectors Are Being Harmed"

Citizens running towards the Daegu Shinsegae Department Store on the 14th / Photo by YouTube video capture

[Asia Economy Reporter Lim Ju-hyung] Fierce competition is heating up among so-called 'resellers' over limited-edition sneakers sold on a first-come, first-served basis. Crowds form in front of stores from early morning, creating a sea of people, and some even risk dangerous 'reverse running' to purchase the products first. 'Resell' refers to the act of buying limited-edition goods and then selling them again at a much higher price shortly afterward. Through this method, resellers can earn huge profit margins. Some argue that reselling is also a form of financial investment.

◆Dozens 'reverse run' to buy limited-edition sneakers

On the 14th, a video filmed at Shinsegae Department Store in Daegu went viral on YouTube and Facebook. Titled 'Real-time Daegu Department Store,' the video shows dozens of people riding an escalator in reverse. One citizen was seen falling midway on the escalator while rushing, creating a dangerous scene.

Netizens who watched the video criticized the citizens appearing in it, saying things like, "What if someone gets hurt?", "Everyone seems crazy," and "This isn't a zombie movie, what on earth is going on?"

Some people fell while riding the escalator in the opposite direction. / Photo by YouTube video capture

At the time the video was filmed, the department store was holding an event selling 100 pairs of golf shoes priced at 179,000 won each as a limited edition. The crowd in the video was engaging in what is called an 'open run'?a newly coined term referring to consumers rushing to a store as soon as it opens?to be the first to buy the limited 100 pairs of sneakers.

Fierce competition among consumers over limited-edition goods is nothing new. Recently, as more stores release limited-edition products such as shoes and luxury goods, open runs have been spotted nationwide. Some consumers even line up in long queues in front of luxury brand stores before they open to secure their purchase.

◆Resell market forms around limited-edition goods... Platform companies join in

Why have limited-edition sneakers become so popular? While scarcity due to limited quantities appeals to enthusiasts, the surge in interest from 'resellers' is also a major factor. 'Reseller' is a newly coined term referring to those who specialize in reselling specific products.

Typically, limited-edition products are produced to promote a particular brand or to commemorate special events. These products are usually sold in quantities ranging from 100 pairs to several hundred pairs at most, and once sold out or after a certain period, they can no longer be purchased, increasing their rarity. Resellers buy these goods in advance and, after the sales period ends, release them on the secondhand market at higher prices to earn profits.

The sales screen of the resale online trading platform 'KREAM.' You can check everything from shoe sizes to transaction price fluctuation information. / Photo by KREAM Internet Homepage Capture

Reselling has already grown into a massive market with specialized stores and online platforms. For example, South Korea's largest portal site, Naver, launched a resell goods trading platform called 'KREAM' through its subsidiary Snow in 2020. The country's largest online fashion platform, Musinsa, also introduced a resell-only platform called 'soldout.'

These resell platforms systematically provide various information such as sneaker sizes, selling and bidding prices, product quality inspections, and real-time price fluctuations, acting as intermediaries between resellers and buyers. Given this situation, some consumers even regard reselling as a form of financial investment.

In particular, 'resell investment' attracts strong interest from the 10-20 age group. Limited-edition sneaker prices range from 100,000 to 400,000 won, an amount that young people with relatively low income levels can afford. Additionally, being internet-savvy, this generation can quickly gather information on limited sales and actively participate in 'limited-edition hunting.'

◆"Positive investment tool" vs. "Hurts genuine collectors"?Citizens debate

Young people who resell emphasize that reselling can also be an excellent investment tool. A 20-year-old university student A, who is currently gathering information on limited-edition events to sell sneakers on resell platforms, said, "If you get an 180,000 won sneaker well, you can aim for 700,000 to 800,000 won, and up to 1,000,000 won at the highest. It means you can earn up to 800,000 won if you work diligently. Isn't that a decent investment?" He added, "Resellers benefit by making money, and collectors can easily get limited-edition products, so it's better for both."

Office worker B (27) said, "I don't see much difference between investing in stocks or Bitcoin and reselling. The only difference is that reselling requires more physical effort." He added, "Also, unlike electronic currencies, even if you can't sell sneakers at a higher price, you get to keep them yourself. Doesn't that mean the risk of failure is lower?"

In May 2020, customers lined up in front of the luxury goods hall at the Lotte Department Store main branch in Jung-gu, Seoul / Photo by Yonhap News

On the other hand, some pointed out that reselling actually undermines the significance of limited-edition products. Office worker C (in his 30s) said, "Limited-edition sneakers are made for fans of the brand, but as they become targets of resellers, the chances for fans to get them have greatly decreased." He criticized, "They say you can just buy them again on resell platforms, but does it make sense to buy something that costs 180,000 to 200,000 won secondhand for 800,000 to 1,000,000 won?"

Another office worker D (30) said, "Personally, I have no ill feelings toward resellers, but if competition overheats like open runs, I worry that safety issues might arise someday."

Experts predict that the resell market will continue to gain popularity due to the scarcity characteristic of limited-edition products.

Professor Lee Eun-hee of Inha University's Department of Consumer Studies explained, "Sneaker brands originally released limited-edition products as a means of SNS marketing, but the market formed as this merged with reselling."

She added, "Not only in Korea but also overseas, specialized stores and e-commerce trading platforms for reselling have existed for a long time. It brings strong promotional effects for companies and arouses consumers' desires for collecting and investment expectations, so the resell market will continue to be actively revitalized."