StockX, a web site that connects buyers and sellers using stock-market-style bidding, has secured a new $6 million funding round from an eye-popping list of big names. It is a lineup sure to help StockX grow its name recognition and buzz through promotion and plugs by these celebrities, not unlike the
When Campless became StockX everyone was abuzz about how Dan Gilbert, owner of the Cleveland Cavaliers, had jumped into the resale game. I obviously took considerable interest because here was an information site that had never sold a pair of kicks garnering an investment when my shoe company and e-commerce had generated over 3 million in sales in 4 years.
I began tracking sneaker related investment and the list has grown considerably. This information about additional investors dropped today via Yahoo and is another piece of information that shows the power of resale in the sneaker field is still growing, although I see a considerable shift happening that makes me wonder if people are really paying attention at all.
“Among the new investors in StockX are: actor Mark Wahlberg; rappers Eminem and Wale; agent Scooter Braun; NFL cornerback Joe Haden; and investors Ted Leonsis, Steve Case, AOL CEO Tim Armstrong, and Ron Conway.”
I’ve used Stock X several times and it works wonderfully, but there are inherent issues with the platform that all sneaker resale sites face.
The resale market is changing and in order to advance, platforms have to place a considerable amount of time into customer acquisition. StockX also has the problem of only being relevant as it relates to the high end resale market. Resale has become much more difficult as customers are not being as tempted as they have in the past to buy the “hot” shoe. Resale prices are only holding on the most limited releases. The majority of resale is now on discounted models which is a completely different story.
StockX is definitely a viable commodity, but there are potential disruptors everywhere in this market. Here are a few articles I’ve written on the companies receiving investments: