American sneaker fans Josh Luber and Dan Gilbert, and rare model collectors, decided to create the StockX resale platform in 2016. A disruptive business model that quickly became a great success.
Having established itself as a firm favourite among sneaker collectors, StockX now boasts over 14 million visitors each month.
“Josh Luber’s idea was to shake up the second-hand market, but also to regulate it by offering sneaker enthusiasts a certain guarantee regarding the actual value of a particular model”, explains Insitaction founder Aurélien Leprêtren.
StockX works like a stock exchange, with the exchange rates for each product displayed in real time. “Sellers state how much they are willing to let their pair of sneakers go for and buyers indicate how much they are prepared to pay for a particular model”, Aurélien explains. “The average price of a product changes based on how popular it is”.
The StockX catalogue features over 20,000 pairs of sneakers, and the platform also offers a variety of other quality products, such as luxury brand bags and watches.
A ‘black box’ on Lafayette St.
StockX opened its first physical store on New York City’s Lafayette Street in 2019, a great way to strengthen the brand’s presence on one of the city’s trendiest streets. “It’s actually a museum space, spanning some 250m2 and done out entirely in black”, Aurélien explains. “Some of the products are displayed like works of art, with visitors wandering from one showcase to another, adding to their wishlists as they go. It is, of course, possible to buy through the website. This location also serves as a Click and Collect point for New Yorkers who have ordered online”.
The success of a business model based on transparency and trust
Four years after it was first created, StockX is now valued at over $1 billion. The platform has also successfully imposed its model based on transparency and trust, in line with Josh Luber and Dan Gilbert’s goal of protecting sneaker lovers against scams and counterfeit products that were selling for big bucks online.
StockX has built its reputation on the back of its certification office, which screens all of the products sold on the platform. “When the brand talks about expanding internationally, it doesn’t mean opening more shops but rather opening authentication centres in Paris, Amsterdam and even London”, Aurélien explains.
A carefully considered and perfectly positioned UCO in a very dynamic market. Boosted by a growing number of collectors, sneaker sales are expected to reach $6 billion by 2021.