A StockX Initial Product Offering™ (IPO) is a release method that empowers you, the buyer, to set your own retail price, giving everyone an equal chance to secure product without bots, breakdowns, or plugs.
Source: StockX: Sneakers, Streetwear, Trading Cards, Handbags, Watches
In my recent book, I discussed that the strength of StockX lies in their IPO strategy. The Dutch market auction concept allows for a product to have the price set after all bids are input. The IPOs have been utilized on a number of occasions. In my book, I stated that the expansion of StockX’s user base creates an interesting dilemma for e-commerce in the sneaker and streetwear industry.
The IPO offers an elegant solution to limited release drops and allows brands to maximize the amount of money they generate for each item being released. It’s an extremely disruptive component that hasn’t even begun to be utilized. The upcoming Team Wang IPO is the first to offer a fashion line release for apparel. The Team Wang IPO will make available 1000 Tees, 1000 Vests and 1000 Track Suits. As much as I love the concept, much in the way that a company runs a Kickstarter, it misses a vitally important element, sizing and extending the reach of the IPO, brand and product, beyond the moment created by the auction.
I’ve been analyzing previous IPOs and I’ve found some anomalies, I won’t discuss here; but an apparel IPO creates the opportunity for a discussion on the drawbacks of the IPO concept. I’ve long discussed the shortcomings of e-commerce. In this instance, unlike the footwear IPOs run by StockX, they are missing, as I stated earlier, a critical piece of information on the site leading up to launch. Apparel requires a sizing chart. There isn’t one. This IPO is flawed and could expose StockX for an issue that I discussed in the book on the amazing growth of the site although the site doesn’t offer returns.
This will be one of the most interesting experiments in e-commerce and retail. I wanted to make sure I wrote this post to have a foundation for returning to this discussion later. Use the source link above to visit the page and to make a bid if you like.