General Release Jordan Retros have been tanking a lot via retail and several factors have caused this situation. The Nike DTC ( Direct To Consumer) offense is the main reason behind the current problems retailers are facing; the retail apocalypse is progressively getting worse. I don’t claim to have the remedy to this illness but this week I went into my lieutenant columbo’s routine and did a quick research on how general release Jordan retros are performing via third party marketplaces. I chose the recently released Air Jordan 13 Island Green as my guinea pig to represent the bigger population. The sneaker released on November the 9th with a $200 retail tag. As soon as I wrote my projection post on the number of pairs produced and realized that Nike had flooded the market with so many pairs, it became obvious that retailers were going to bite the dust again. So I decided to monitor the progress of the value of the Jordan 13 island green on third party marketplaces in order to raise a few questions. I organized the data collected in three different categories – before release date, on release date and after release date. And the histograms below will show you the findings and inferences we can draw from it.
Before Release Date
Before November the 9th ( the official release date of the Island Green 13), a total of 129 pairs had been sold with size 10 and 10.5 leading the charge ( 17 pairs sold). Now let’s see what the average sale price was per size sold.
The histogram above is the average sale prize per size sold and you can clearly see that the highest the shoe sold for was $220 ( and that’s for a size 7.5). I want you to also notice that a size 7 sold for $166 ( which is about 21.69% below the $200 retail value). Sizes 8,8.5,9,9.5,10,10.5,11.5,12.5,13 and 14 also sold below retail ( about 8% below the $200 retail value after tax). The overall resale value of the shoe prior to its release date was: $198.21 ( which is about 6.5% below the $200 retail value with MD tax included)
I’m not going to raise any questions yet, now let’s look at how the shoe performed on November the 9th ( which is the actual release date).
On Release Date
A total of 83 pairs were sold on the day the shoe was released via third party marketplaces. Now let’s see what the average price was on the specific day.
The highest sale recorded was for a size 7 at $220; but the interesting fact to notice here is how the shoe overall dropped in value on that day. Let’s quickly calculate the overall average resale value of the shoe:
the average resale value is now $181.79 ( which is about 14.25% below the $200 retail value with MD tax included). Also let’s let’s mention how the overall value went from $198.21 before the shoe released officially to $181.79 on the day it released. The shoe lost about $16.42 in its after market value. Now let’s jump into the sales’s records after release date.
After Release Date
A total of 374 pairs have been sold after November the 9th; let’s see how the average resale value is though.
The highest sale recorded was $225 ( for one size 15); and even that the overall average value is: $168.2 which is about 20.66% below the $200 retail value with MD tax included. I’m being very generous here because I included the $225 ( which could be considered an outlier). So if I were to take away the size 15, the overall average sale value would’ve been $164.14 ( 22.57% below the $200 retail tag with MD tax included. Now let’s quickly see how the value declined within a 30 day interval.
The Air Jordan 13 Island green has literally plummeted in value within a short time span. Even before the shoe officially released it was already reselling below retail. Now what does this have to do with retailers? I’m going to now raise a few questions and then we’ll look at some possible solutions to this problem.
The retailers above still have practically a full size run of the Jordan 13 Island Green. I don’t have their sales’s data ( to see how many pairs each of the above sold) to compare it against third party marketplaces’s records. But buyers will always look for the cheapest prices and by now third party platforms like eBay, StockX, Goat and Kixify are the primary destinations for most consumers when it comes to General Release Jordan Retros. Now let’s ask ourselves a few questions
Where are the shoes being sold on third party marketplaces coming from?
That’s a good question to ask because the current price the Island Green 13 is being sold for is alarming. We all know that eBay is polluted with fake sneakers. All the recorded sales are mainly coming from StockX or GOAT ( and none these entities sell replicas based on their own claims). So if the pairs being sold aren’t replicas, where are they coming from? I’m going to throw a few suggestions-the pairs might be indirectly coming from Nike ( _ _ fill in the blanks), they might be stolen or they might be coming from retailers themselves. Why did I suggest retailers? If the Jordan 13 Island Green is retailing at $200, I’m assuming that the wholesale price is $100. And if that’s the case, I believe retailers can easily sell a portion of their inventory through places like StockX and GOAT since the sellers’s identities are concealed.
2. How can retailers survive in this very competitive market?
Retailers have to be able to develop several strategies to draw the consumers to themselves. A lot of retailers’s websites are very redundant/boring in the sense that there is little motivation for consumers to visit their platform daily. The user experience in stores and online is as as dry as a bone and the only time there is any spike in traffic is when a limited shoe is released. As good as this suggestion is, I think it does only solve a very small portion of the problem at hand. Buyers are always looking for the cheapest prices available and a place like StockX has certainly allowed the buyer to impose his/her own price on the commodities hence the spike in sales. Retailers don’t have that luxury but if they were to set in place a reward program for their loyal customers that would allow them to price-match StockX’s prices ( on General Release Jordan Retros only) on the go/live based on each particular size, then they could compete with the changes in the market now. The reward program could be implemented for both the physical stores and the online shop. The only other solution ( this is a grey area) and I believe several retailers are already doing that covertly is to create a third party marketplace division. Retailers could give all their general release jordan retros a 14 days shelf life and then delegate a 1/3 of the inventory to third party marketplaces ( again this is a very rough/edgy solution).
There are a lot more things that could be done to navigate these waters but at this moment, this is all that I can think of. Stay tuned for further updates.