2026-01-08
Speculative activities related to sneaker reselling must be strictly regulated.
Not long ago, Nike released a "Lightning Swoosh" sneaker, a collaboration between its Air Jordan brand and renowned musicians and designers. The market response was overwhelming, with shoes in high demand and short supply. In the domestic market, the resale market for this shoe has also become active, with prices on some platforms several times, even ten times, higher than the retail price (1599 yuan/pair). The most expensive pair, size 45.5, is priced at 31,999 yuan, 19 times the retail price. Despite the high prices, the transaction volume is considerable, with the page showing over 1000 payments.
Anyone with basic economics knowledge can see that this is not normal trading, but rather market speculation. It seems that the sneaker reselling phenomenon, which had subsided for only a few months, is showing signs of resurgence.
Sneaker reselling is not new; it has existed for many years. Currently, a sizable sneaker reselling circle has formed globally. According to insiders, the peak period for sneaker reselling was from 2016 to 2019, during which many people made a fortune through sneaker reselling. Data shows that in 2019, the global secondhand sneaker market reached $6 billion, with my country accounting for one-sixth of that. The frenzy surrounding sneaker speculation is evident in the number of registered sneaker-related companies: in 2016, there were 4,800 such companies in my country, while by 2019, this number had surged to 9,200.
From a market perspective, any commodity will see its price rise when demand exceeds supply, especially limited-edition items from well-known brands, which command high prices due to market demand. However, prices cannot rise arbitrarily. When prices increase too rapidly and the premium becomes excessive, exceeding a certain range, it becomes an abnormal phenomenon that violates price principles, indicating human intervention and price manipulation. Sneaker speculation, in essence, defies market principles, suggesting manipulation by unscrupulous individuals seeking illicit profits.
Regarding the sneaker resale craze in China, as early as October 2019, the Shanghai branch of the People's Bank of China issued a financial briefing entitled "Be Vigilant Against the Sneaker Resale Craze and Effectively Prevent Financial Risks," issuing a warning. The briefing explicitly stated that the sneaker resale market in China was experiencing a resale frenzy, and that sneaker resale platforms were essentially a "pass-the-parcel" capital game, reminding institutions to pay close attention and take effective measures to prevent such risks. The briefing mentioned that sneaker resale transactions were showing a trend towards securitization, with huge daily trading volumes; some third-party payment institutions provided installment payment and other leveraged services to sneaker resale platforms, and the entry of leveraged funds exacerbated financial risks; the operations were opaque, and if a platform "runs away," it could easily trigger mass incidents.
Subsequently, economists have continuously exposed the true nature of sneaker resale, reminding those joining the sneaker resale circle not to be misled by appearances. Some insiders, recognizing the inherent dangers of the sneaker resale market, have come forward to expose its complexities. They claim that sneaker reselling is indeed a game of musical chairs, where only those with substantial capital and access to manufacturers can obtain the deliberately limited-edition items. These individuals, controlling the supply and market, can then manipulate prices. Subsequent waves of resellers simply become the next batch of "harvested韭菜 (a metaphor for easily exploited investors). In fact, the sneaker resale market has developed into a gray industry chain over the years, fueling counterfeiting and giving rise to illegal fundraising, financial fraud, and pyramid schemes—all affecting large numbers of people.
Recognizing these economic and financial risks, Chinese government departments have intensified their control over sneaker reselling. Earlier this year, relevant departments required platforms engaged in secondhand trading to develop rules to regulate the phenomenon. Some trading platforms have also issued "Wear Shoes, Don't Speculate" initiatives and implemented measures to correct the trend, such as updating transaction methods, introducing risk control measures, and restricting transactions when sneaker prices rise excessively. However, the recent resurgence of sneaker reselling suggests that eradicating this chaotic phenomenon will not be easy and requires long-term governance.
Clearly, government regulatory departments need to expedite the enactment of comprehensive laws and regulations to establish a dedicated governance mechanism for sneaker reselling. Strict oversight of trading platforms involved in sneaker reselling is crucial, along with rigorous investigation of speculators suspected of illegal reselling. This will ensure that sneaker trading operates within market rules and manageable boundaries, protecting consumers' legitimate rights. Simultaneously, enhanced public education and awareness campaigns are essential. Legal cases should be used to expose the profit chains behind sneaker reselling through the media, helping the public understand the risks and benefits of reselling and fostering a social consensus of "wearing shoes, not reselling them."
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