I received the following email from GOAT a couple of days ago,
UNDER RETAIL Under Retail launches tomorrow and we’re inviting all Sellers to participate. Simply list a sneaker under retail price and we’ll automatically display it in the collection. Here are some of the most wanted styles to list under retail
I immediately went into my Lieutenant Columbo routine and wanted to know the implications of this “Under Retail Campaign”. Chris from ARCH and I have had a recurring conversation over the course of three years that was birthed out of the following observation- even though the new breed of third party marketplaces( GOAT, STOCKX) are thriving , they are only really excelling in one area , that of the hyped sneakers aka the typical Saturday morning “Release Date “sneakers. I even wrote a post a couple of years ago making the bold claim that StockX would soon disrupt eBay and Amazon, see post below
Let me give you a quick and very recent example to make my case; yesterday I wrote a projection post on the Air Jordan 1 Crimson and one of the sections of the article dealt with the current market value of the sneaker being investigated. To come up with the market value, I usually collect sales data from eBay and StockX. Yesterday to my amazement ( not really ), 689 pairs of the Crimson 1’s sold on StockX while eBay only recorded 21 sold pairs. Well that number went up to 936 this morning and I won’t even waste my time checking ebay’s records.
But as dynamic as these marketplaces are they can’t really disrupt giants like eBay and Amazon until they appeal to a broader audience and cater to folks looking for steals under $100 dollars. My wife and several of my co-workers from the program I work for still shop and buy all their shoes on eBay or Amazon. I’m using this as a sample to show you that on a larger scale, folks still have their eyes glued to Amazon or eBay when it comes to shopping for regular/ low end sneakers.
But seeing this email from GOAT is indicating to me that the marketplace is seriously considering that option and that ought to be a concern for smaller chains. GOAT received an investment from Footlocker hence the situation is obviously going to benefit FTL which consequently puts smaller chains and others in a more precarious spot. Chris wrote an entire post about the reasons behind this acquisition, see post below
Once again this is a sign of things to come, I don’t know what type of marketing strategies GOAT has implemented to reach that broader audience but one thing I’m sure of is that the marketplace is transitioning to that low-end level.
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