Enthusiasts worldwide have fuelled an expanding bubble in high-priced sneakers, often limited-edition collaborations between big names in sportswear and fashion, rappers or athletes.
But in China the craze is at fever pitch, with devotees driving soaring trading volumes on online “sneaker exchange” platforms, prompting warnings from authorities about dangerous speculation as resale profits approach 5,000 percent.
“The sneaker market is no longer just a game for enthusiasts. Speculators are flocking into the business now,” said Hu, who travelled 300 kilometres (187 miles) to Shanghai for the chance to buy the latest Nike Air Jordans.
It’s the 23-year-old’s lucky day.
After winning an online lottery for the right to even show up at a Nike store along with around 400 others vying for limited supplies, Hu secured the right to plonk down 1,299 yuan ($186) for a pair.
He plans to quickly “flip” them for double that on a bustling resale market.
“If I wasn’t so lucky today, it’s possible I wouldn’t be able to afford the shoes on the secondary market,” Hu said.
The craze’s appeal owes to two main factors.
NBA stars like Michael Jordan have been idolised for years in China, where basketball is arguably the most followed sport, and the associated streetwear culture finds a huge and growing market.
And with Chinese authorities limiting individual stock-market price movements to contain volatility, sneakers are embraced by younger investors seeking quick profits in a commodity they can relate to.
Excessive speculation warning
“If selling overpriced sneakers proves so worthwhile, why not take it as a good source of income?” said Hu.
The phenomenon is spurring quick growth in Chinese sneaker-trading platforms like Poizon, whose annual volume is around 15 billion yuan, according to Chinese tech consultancy iiMedia Research.
That is more than triple the volume of StockX, a leading US platform.
Platforms like Poizon and Nice also have attracted hundreds of millions of dollars in investment from foreign and domestic venture capital, according to Chinese media reports.
The global market is taking notice. StockX rival GOAT launched an app-like mini-programme on leading Chinese messaging platform WeChat in July. StockX executives say they also are crafting China plans.
The Shanghai branch of the central People’s Bank of China issued a warning last month about the financial risks of excessive sneaker speculation, and government-controlled media portray the phenomenon negatively