The resale sneaker market has been growing and is now valued at about $6 billion, a significant part of the global general sneaker category of $100 billion. Last year one of the company’s fueling this marketplace, StockX, was given a one-billion-dollar valuation, and its CEO, Scott Cutler says that about $1 billion worth of merchandise, not just sneakers, was sold on his platform.
StockX also provides a marketplace for buyers and sellers of handbags, streetwear, watches, and collectibles, not just sneakers. The company launched about five years ago and is headquartered in Detroit. So far, they have raised about $160 million from investors, but others say there is a streetwear bubble that is just about to burst. Add the current pandemic that is laying off hundreds of thousands of people into the forecast and it would be a fair assessment to say that StockX is heading into some trouble.
Apparently, trouble is not at all where StockX is heading, if we can believe the firm’s CEO. According to Cutler, his business is doing nothing if it isn’t booming.
How has the coronavirus been good for business? Cutler had this to say at a March 25th online event conducted by Erin Griffith, a New York Times reporter who writes on technology, startups and venture capital:
“The recent events over the last couple of months have been a benefit to our business. We’ve had more and more traffic and buyers coming to our site because in some respects, traditional retail in some geographies is not available. We thought we’ve always been a marketplace of scarcity, but now you can’t actually go into a real retail location, so you’re coming to StockX. So on the one hand, it’s been great for our business and for our growth.”