Behind the industry chain of buying shoe trucks: the post-95 era leads the change of consumption trend

“Middle aged people speculate in stocks, young people speculate in shoes and currency”, this sentence has been more and more well known. This generation of young people’s ability to consume trends is better than before, and more and more people see the potential behind this market.

 

The hot domestic shoe market, let Malin see business opportunities. Different from the way of robbing goods, hoarding goods and appreciating shoes, this “post-90s” young man, who has lived in the United States for a long time, has “swept” the major discount stores in the United States to sell sports shoes made in China or Vietnam back to China at the best price to earn a price difference.

 

Marlin made an account. Generally speaking, if you buy shoes in discount stores in the United States and then resell them in China, plus taxes and freight, 90% of them will not make money. However, his advantage is that he can find out the remaining 10%, and find the best shoes with the biggest price difference from discount stores and sell them back to China. Before entering COVID-19 in September 2018, Ma Lin earned the first 1 million yuan (RMB) by selling 800~1000 pairs of shoes every month.

Behind the industry chain of buying shoe trucks: the post-95 era leads the change of consumption trend

Malin told China first finance and economics that at present, the annual profit is stable at about 1 million yuan. “Every year we have to run two ends. Due to the impact of the epidemic, we will only stay in the United States for half a year in 2020. If we have the opportunity, the (profit) will be higher.”

 

Today, Malin’s shop on Taobao has ranked in the top 500 of the whole category of sports shoes. “Our positioning is to be the porter of discount stores, to ensure fast in and fast out, light inventory, to use the first-hand procurement channels to ensure our price advantage, and then to ensure sales, so as to ensure the flow of funds and goods, the store will grow rapidly.”

 

Business experience of international buyers

 

The domestic shoe market had been tepid before, and it happened to catch up with a wave of wind in 2018 when Malin entered the industry.

 

Stimulated by the hunger marketing of Nike and other brands, the prices of many shoes soared, “especially the aj1 series, a lot of good-looking color matching can earn hundreds of yuan by reselling back home.” Marlin said.

 

Take an aj33 as an example. The selling price in the United States is 175 US dollars. With the discount, the buyer’s price is 56 US dollars. It costs about 550 RMB to sell the same type of shoes in the domestic secondary market (shoe trading platform), and Marlin’s price is about 800 RMB. In this way, a pair of shoes will have a profit of 200-300 yuan.

 

Before the “black five” Shopping Festival in November 2019, Marlin went to several outlets to explore the way and determine the time and route to the store. On the day of black five, he ran six outlets for nine times and bought more than 400 pairs of shoes.

 

Where there is a market, there must be competition. When major outlets sweep goods, they can often see foreign students comparing prices with mobile phone apps, or Chinese people moving shoes one by one. In order to cope with the competition, his highest record was driving about 800 kilometers in one day and running eight outlets to sweep goods.

 

The shoe market has existed for many years. Malin said that his shop is a waist merchant. “There are many predecessors, such as head merchants who have considerable cash and inventory and sell millions of pairs a month. Of course, there are also “part-time student players” who flip a few pairs of shoes.

 

The most important two links in the shoe market are purchasing and selling: cost control and pricing right.

 

Marlin believes that self procurement has reduced the risk of resellers, and the purchase price is cheap. “We are a one-stop process of procurement and sales. We buy directly from the United States and sell by ourselves in China. While ensuring profits, we also accumulate customers’ fans and reduce a lot of risks, because futures fraud in the footwear industry has been happening all the time. In addition, in the United States, we have our own logistics channels and buyer network, and in China, we have spot warehouses. These are advantages and competitiveness. ”

 

The outbreak of the epidemic has a great impact on his shoe business. “In terms of procurement, in 2020, Nike and major shopping malls in the United States will be closed for three or four months. They will not open until June or July, and many Nike stores will be closed directly. Even if some of them are open, many restrictions have been added for epidemic prevention. ” Mr. Marin said many restrictions have made procurement much less efficient.

Behind the industry chain of buying shoe trucks: the post-95 era leads the change of consumption trend

Last March, in London, a woman read a suspension notice posted outside a Nike store. Xinhua news agency information

 

Last March, in London, a woman read a suspension notice posted outside a Nike store. Xinhua news agency information

 

This also forced Marin to adjust the way of purchase. Nowadays, he is more likely to cooperate with local buyers, such as inviting local students or friends from express companies to buy shoes, so as to improve the efficiency of purchasing and sweeping goods. Although it increases the cost (per unit), it can also guarantee the supply of goods.

 

Thanks to the in place prevention and control of the domestic epidemic and the early recovery of the economy, in August and September 2020, the domestic sales volume of Malin store reached the highest record, with the highest monthly sales volume reaching 800000 yuan. He said frankly that the sales volume was even better than that during the Spring Festival in previous years, but also mixed. “The recovery of the domestic economy and the sharp rise of sales volume have also attracted the attention of the brand side. This year, Nike has made great efforts in clearing and discounting in the domestic market, which also has an impact on the sellers in our secondary market.”

 

What is the potential of the shoe market? According to a second-hand shoe industry observation report released in January 2019, the global second-hand shoe market has reached US $6 billion, of which the resale market in China has exceeded US $1 billion. In 2019, the joke of “buy a few pairs of aj5 ice blue last month, and you can buy a house in Beijing this month” does not seem to be a joke in the shoe circle.

 

On the whole, Malin believes that although the market has dropped slightly, the demand potential of the domestic shoe market in the next few years is still very large, and there will be more participants and funds entering, “but the profits will be low in the future, the market will be more transparent, and of course, the competition will be greater.”.

 

Open card stimulation is better than blind box

 

Similar to limited edition football shoes, star card is also a product with both collection and investment potential. In September 2020, a rookie card of Janice adtokumbo sold on the trading platform eBay for $1812000, which not only set a new auction record in the history of basketball star card, but also is beyond the expectation of football shoes.

 

Similar to the blind box, star cards are sold in sealed packaging and are sold at random. At the sneakercon exhibition in Shanghai at the end of last year, a young man in his early 20s opened a box of star cards at Panini’s booth. When he pulled out a golden NBA star card from a bag of cards, the crowd cheered.

 

Cheering means the star card is worth a lot. It is understood that the price of this box of star cards is 2000 yuan, a box of cards has 12 packets, each packet has 6 cards. Staff said: “generally speaking, players buy Star card collection, if they want to sell, according to the existing market rules, the price of this star card will be determined by the authoritative rating agency rating, the higher the rating, the higher the value.”

 

It is revealed that the star card arrived at the scene on the same day can be estimated at about 10000 yuan. In other words, if you buy 72 star cards at the cost of 2000 yuan, it’s equivalent to about 28 yuan per card. If you’re lucky, you can make a profit by winning a champion card, and a single card can make a profit of 357 times (estimated at the cost of 2000 yuan, it’s 4 times).

 

Star card has been popular abroad for a long time. In the United States alone, the annual economic growth of star card industry, which is composed of authorization, publishing, sales and exchange, is close to US $2 billion. Some people in the industry estimate that there are about 50000-60000 card fans in China. Even if there is an increase during the epidemic period, there will be no more than 100000, while there are more than 10 million players in the star card market in the United States. Compared with the number of shoe players, the number of card fans still has a lot of room to improve.

 

Based on the market potential, Panini, an Italian company with the exclusive copyright of NBA star card, opened its first online store in tmall in 2020. During the epidemic period, live online unpacking brings players a strong sense of experience. Jason Howarth, vice president of Panini’s US marketing, told first finance that the unpacking experience is a highlight of Panini’s products. No matter what age you are, when you hold a bag of cards, you will be eager to know what is inside. If it happens to be a favorite player, team or superstar, it must be very exciting. At the same time, what kind of cards can appreciate and maintain value also drives the market and the overall experience of card collection.

 

At present, the sales channels of Panini products in China include fan stores, retail stores and online shopping malls. In the future, we hope to establish a complete card trading community in the Chinese market.

 

Consumption trend of generation Z

 

Whether it’s shoes or cards, players’ attributes are similar and overlapping.

 

“Consumers’ truck habits are very similar. In general, through team opening and online live broadcast, the card trading group has truly become a global and shareable group, which is obvious to all. ” Howard believes that, to a certain extent, players agree with the scarcity of cards and shoes. Scarcity is the inherent characteristic of card trading and shoes trading, and it is also one of the important factors to promote the market.

 

At the same time, with years of experience in the shoe market, Malin believes that “the shoe circle actually overlaps with the players in other fashion circles. In addition to shoes, in 2020, there will also be a trend of stir frying toys and building block bears. The characteristic of these products is that the hungry marketing of the brand side, such as Super Limited sales, CO branding with other brands, etc., can not be copied. In addition, the products and other celebrities or stars are more likely to make quick money through hype. ”

 

At last year’s China joy, visitors took photos in front of a group of cartoon game doll models. Xinhua news agency information

 

At last year’s China joy, visitors took photos in front of a group of cartoon game doll models. Xinhua news agency information

 

According to Frost & Sullivan, a consultancy, the total retail sales of China’s trendy toys increased from 6.3 billion yuan in 2015 to 20.7 billion yuan in 2019, with a compound annual growth rate of 34.6%. Sullivan predicts that the retail market size of trendy toys will reach 76.3 billion yuan in 2024.

 

Behind this rapid growth is the rise of China’s overall income level and the consumption power of the “post-95 generation” and “generation Z” (born in Europe and America from 1995 to 2009). According to a research report released by Guojin securities in January, China’s generation Z has a population of 260 million. The “post-95s” with large population size and consumption potential are leading the high-level consumption market of domestic online consumption, self satisfied consumption and virtual accompanying consumption.

 

Yu Mingyang, Professor of Shanghai Jiaotong University and President of China Enterprise Development Research Institute, who has been studying brand development for a long time, told China first finance and economics that the population of generation Z has great characteristics. This generation is closely related to the Internet as soon as they are born, and they are the “aborigines” of the Internet. For them, the virtual world and the physical world are completely in one. They have a degree of trust in the virtual world, mainly in terms of self preference and personality, and also have very high requirements for appearance.

 

As for the development status of the domestic Chaozhou game collection market, Yu Mingyang said that at present, the development of market fragmentation, personalized demand, sense of experience and industrialization trend are the core background to support the development of the market. There is a bubble in the value hype of sports collections such as star cards and sports shoes, but in the long time, the market will have further development in the future. The rise of China’s tide market, especially the rising tide of national wind, is now entering a golden 10 years or even longer period of development.

 

What can not be ignored is that if only for investment, whether limited edition shoes or star cards, the risk and bubble of high risk still exist.

 

Yu Mingyang reminded that investing in sports collections is a combination of personal hobbies and value investment. “On the one hand, it’s a pleasure to combine hobbies with industry, because it can make money as well as like. On the other hand, it also needs a professional threshold. The process of speculation and trading involved here is actually a process of competing professional knowledge or mutual interest contact. If you don’t know anything about it, it’s very difficult to make money in this place.

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