The world of sneaker collecting is booming. Both seasoned collectors and new investors alike are seeing sneakers not just as footwear but as valuable investments. This trend has led to a surge in the need to protect these prized possessions and we've previously offered guidance on how to value and insure collectible sneakers.
Sneaker collecting is a phenomenon that has attracted some high-profile enthusiasts with staggering collections. DJ Khaled, for example, owns over 10,000 pairs of sneakers, estimated to be worth around $8 million. Mark "Mayor" Farese, another well-known collector, has a collection of 3,600 pairs valued at $1 million. Jordan Geller, who holds the Guinness World Record for the largest sneaker collection, has a staggering 2,800 pairs worth an estimated $100 million. Even celebrities like Kylie Jenner and Mark Wahlberg are part of this growing trend, with collections valued at $1 million and $100,000, respectively.
Sneakers are hitting the headlines,
and the big screen
The cultural impact of sneakers extends far beyond the collectors themselves. Sneakers have become more visible in mainstream culture. Last year, the release of the film Air, directed by and starring Ben Affleck, highlighted the iconic partnership between Nike and Michael Jordan. This collaboration gave birth to the Air Jordan trainers, a brand that has become synonymous with sneakerhead culture. The film's success further cemented the status of sneakers as cultural icons.
In the world of high-stakes auctions, some sneakers have
fetched record-breaking prices, highlighting their financial significance. They are a symbol of status, history, and investment potential.
Some of the most expensive pairs ever sold include:
Sneaker image credits; Heritage Auctions
Young people are investing more in sneakers
The trend of sneaker collecting is particularly pronounced among younger generations. A study by the Bank of America found that 94% of wealthy Gen Z and Millennial investors are interested in putting their money into collectibles like sneakers. This is in stark contrast to older generations, with only 80% of Gen X and 57% of Baby Boomers showing similar interest. The rise of sneakerhead culture has been nothing short of meteoric, with the global sneaker market expected to be worth $120 billion by 2026. This shift away from traditional investments like stocks and bonds reflects the changing attitudes of younger investors.
The importance of authenticating sneaker
collections
For collectors and investors, ensuring that their sneakers are genuine is crucial for accurate valuation and insurance purposes. Brit’s partnership with Doerr Dallas Valuations, a specialist in luxury valuations, ensures that sneaker collections are thoroughly assessed and accurately valued, providing peace of mind for collectors.
Some of the areas they examine during a valuation include the following;
Sneaker smell
Believe it or not, one of the primary giveaways of a pair of fake sneakers comes from the smell. There are certain types of glue with distinctive smells that are used in the fake sneaker market, along with the use of acetone or alcohol as a cheap means of cleaning fabric.
Sourcing sneakers from reputable suppliers
Ensuring that the sneakers come from legitimate sources is the first step in authentication. A valuer will need a lot of detail on how sneakers were obtained, as many of the high-end collectable shoes don’t just come to market by chance from a charity shop or similar. They are usually sourced from people who are very well connected.
UV light scanning
This technique can reveal hidden details and markings that are not visible to the naked eye.
Packaging and documentation
Original packaging, boxes, hang tags, tissue paper, and accompanying documentation are vital in verifying a sneaker's authenticity.
Logo placement
Correct logo placement is a tell-tale sign of a genuine product.
Craftsmanship
The quality of materials and construction are key indicators of a sneaker's authenticity. Valuers will look at the colour, stitching around the midsole, and the use of panelling to ensure they have the genuine article.
Alistair Meiklejon, a Senior Valuer with Doerr shares his thoughts on the future of the sneaker market;
sole searching: uncovering fake sneakers with Alistair Meiklejon
“The future of the sneaker market is, as with many things, always going to be a rough ride. We have seen a lot of models drop in value over the last few years, but that has been across the board with many other collectibles from watches to handbags. What seems to keep this market flying is the huge range of available items. From a hundred pounds to a hundred thousand pounds, there are pieces that people want to own at all costs. There will continue to be new releases every month for people to lust over.”
Speak to Brit about protection for
sneaker collections
It's important to ensure that sneaker collections are properly protected. Regular and accurate valuations are essential for insurance purposes.
If you or your clients have a sneaker collection, speak to Brit today. We're here to help you navigate the complexities of sneaker valuation, ensuring that they are protected. Your clients can enjoy reassurance knowing their collection is covered under a home insurance policy with us. Don't leave your collection's value to chance - contact the Brit private client team for expert advice and support.
source:
https://www.britinsurance.com/news/collectible-sneakers-how-to-value-and-insure-them
https://footwearnews.com/shoes/mens-footwear/celebrities-shoe-collections-1203620153/
https://www.sneakerfreaker.com/features/the-most-expensive-sneakers-sold-at-auction/
https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2024BoA-PB_Study_of_Wealthy_Americans.pdf
https://www.doerrvaluations.co.uk/
