The coronavirus or COVID-19 pandemic has traumatized the world since its emergence from Wuhan, China in late 2019. As of 21 March 2020, WHO confirms estimates of the following. 285,000 infected COVD-19 cases. 94,000 recovered cases And 11,000 deceased cases worldwide. Everyone and everything is at stake. Travel is banned. Jobs are at risk. Mass consumption is restrained. Stocks are falling. Industries are shutting down. From fashion to sneakers and music to food. The planet’s trends are currently on indefinite hold. The world is in total lockdown and unfortunately, the list goes on. With social distancing and compulsory quarantines as current norms, the question we are all asking ourselves is this. If the world is at war without human initiative at its source, will we, as humans, be able to control it?
CORONAVIRUS IMPACT ON GLOBAL ECONOMY
The coronavirus outbreak and panic has caused a global economic recession in 2020 with unknown depth and duration. According to Reuters, Goldman Sachs have “cut their global GDP growth forecast to 1.25%.” In non-technical terms, the global recession of 2020 is expectedly less severe than the 1981-82 and 2008-09 recessions BUT worse than the 1991 and 2001 recessions. That is, since the outbreak is taking a heavy toll on the world’s biggest economies: the US, Europe, and most specifically, China. With mass consumption and industrial activities restrained on top of mandated border restrictions, the inequality between rich and poor is bound to skyrocket. Which puts the world in a prolonged state of shock.
CORONAVIRUS IMPACT ON WORLDWIDE INDUSTRIES
In the fashion industry, a long list of famous designers have canceled or indefinitely postponed their upcoming fashion shows due to coronavirus outbreak. That is on top of sale revenues losing millions of dollars and brand chains closing.
In the entertainment industry, major events and festivals have been canceled, according to Vox. Mass media companies such as NBCUniversal and Disney also reported postponing or even cancelling film release dates. The Hollywood Reporter claims that Hollywood could take a $20 billion hit from coronavirus impact.
In the sports industry, the NBA suspends its season indefinitely after a Utah Jazz player tested positive for COVID-19. The NCAA also announced that March Madness will play in arenas without fans, according to CNBC.
In football, BBC reports that Champions League and Europa League could be decided by mini-tournament. In order to complete their seasons and satisfy broadcasting contracts.
Japan has not yet finalized a decision concerning the Olympics 2020 in Tokyo. CNN reports that it is ultimately the decision of the International Olympic Committee (IOC). Safe alternatives are being discussed.
CORONAVIRUS IMPACT ON SNEAKER INDUSTRY
With the world closing in on itself one shutter at a time for safety reasons, industries find themselves in broken homes. The sneaker industry, being one of the most accelerating in the world, is presently dealing with the blows of coronavirus outbreak. Releases are changing. Production needs are unfulfilled. Physical stores are closing. Top brands are losing millions.
The global sneaker market stood at $58 billion in 2018 and was expected to reach a rough $95 billion by 2025, according to Grand View Research. Which projected growth at a Compound Annual Growth Rate (CAGR) of over 7% during 2019-2024! Nike is facing an expected $3.5 billion loss and Adidas a $1 billion loss in revenue due to the virus. Can we expect these numbers to rise back up?
Sneaker Industry Targets EVERYONE!
The rising demand for athletic footwear is not solely inspired by people’s exposure to major sports events (the Olympics, NBA league, FIFA World Cup, and The Championships). It also targets the lifestyle sect of the footwear market. Which is mostly dominated by youngsters with their tech-savvy participation and promotion of the world. The sneaker industry has been booming progressively as a hobby and business. For about 6 years now. From brand loyalty to intelligent bots and hype resale markets! Will the spreading virus present as a long-term stunt to its growth?
The US Footwear Industry Was “Shaky” Before Coronavirus Hit
By September 2019, President Trump sent out a $300 billion tariff threat to China’s foreign ministry. Which set off a U.S-China trade war, according to CNBC. With their on-going trade war, the footwear industry took a massive hit in January 2020. Footwear imports had dropped by 15.7%. The major problem? 70% of shoes sold in the US come from China As confirmed by the president of the FDRA. With inadequate domestic supply chains and the on-going Chinese tax war, the US sneaker industry was in fact struggling before coronavirus even hit.
Kanye West announced, at the Fast Company Innovation Festival in 2019, that Adidas Yeezy production will permanently move to North and South America. Including his 4,000 acre ranch with a hydroponic farm in Cody, Wyoming. Fear of God designer, Jerry Lorenzo, already manufactures premium-quality products in LA and Italy for ethical reasons.
Whether moving production to the US is driven by a conscientious agenda or a failing economy, many artists and designers are bound to consider it.
WHAT’S IN IT FOR YOU, SNEAKERHEAD?
Sneaker Release Dates Delayed Due to Coronavirus
Brands are closing their stores globally, and indefinitely. Due to the coronavirus outbreak, sneaker releases will be dropping online to ensure the safety of customers and staff. The following is the list of the top delayed Jordan releases of 2020. Taking that other brands did NOT care to address the severity of the situation immediately!
Air Jordan 6 DMP
Expected Release Date: March 2020
Updated Release Date: April 11, 2020
Retail Price: $200
Style Code: CT4954-007
Air Jordan 5 Top 3
Original Release Date: May 16, 2020
Updated Release Date: May 30, 2020
Retail Price: $200
Style Code: CZ1786-001
Colorway: Black/Fire Red-Grape Ice-New Emerald
Air Jordan 5 Fire Red
Presumed Release Date: March 28, 2020
Updated Release Date: April 25, 2020
Retail Price: $200
Style Code: DA1911-102
Colorway: White/Fire Red-Black
Air Jordan 13 Flint
Original Release Date: April 18, 2020
Updated Release Date: May 2, 2020
Retail Price: $190
Style Code: 414571-404
Colorway: Navy/Flint Grey-White-University Blue
Air Jordan 4 Retro Court Purple
Original Release Date: May 9, 2020
Updated Release Date: May 14, 2020
Retail Price: $190
Style Code: CT8527-115
Colorway: White/Court Purple-Metallic Silver
Air Jordan 11 Low Suede
Original Release Date: April 25, 2020
Updated Release Date: May 23, 2020
Retail Price: $185
Style Code: AV2187-160
Colorway: White/University Red-Black-True Red
Dior x Air Jordan 1
Expected Release Date: April 2020
Updated Release Date: TBC
Retail Price: $2,000
Style Code: CN8607-002
Colorway: Wolf Grey/Sail-Photon Dust-White
Inevitable Spike in Sneaker Retail
It’s a known fact that China is the world’s manufacturing superpower. Although it isn’t the cheapest! Due to its domestic production of raw materials and high demand, it is cheaper to manufacture in China than in the US by 5%. As for Europe, the increase in cost jumps to 10-20%. If production moved entirely to the US due to circumstances, there will be a significant spike in retail prices. However, taking into consideration President Trump’s catastrophic tariff threat to China, the FDRA, through CBS News, estimated the following shoe price changes:
- Performance running shoe: $150 to $206.25
- Basketball sneaker: $130 to $178.74
- Skate canvas sneaker: $49.99 to $65.57
- Hunting boot: $190 to $248.56
- Workboot: $140 to $165.45
- Firefighter boot: $350 to $430.65
StockX: Online Resale Market Seems “UNAFFECTED” by Coronavirus
The resale market is at its best, “a litmus test of what’s hype.” The sneaker/streetwear resale market is currently worth $2 billion in North America, according to Cowen. It is estimated to reach a whopping $6 billion by 2025. Reselling sneakers has become more than just a hobby for sneaker enthusiasts. With Footlocker’s $100 million investment in GOAT to GOAT’s fierce competition with StockX, the golden resale platform. It’s become a business investment plan even for non-sneakerheads. However, with jeopardized supply chains, severely affected sales, and a probable spike in retail, will the resale game survive this economic clash?
Should sneaker retail prices increase AND stock numbers become even more limited due to production limitations? The sneaker resale game will catch fire with insane four and five digit bids! The question is, will it be worth it by then or, more importantly, affordable with the falling economy? The selling fee on StockX, for example, is 9.5-14.5% PER SALE! In 2019, it brokered an estimated $1 billion worth of transactions, as confirmed by Inc. Magazine.
The world is currently in deep shock. Which may be the reason behind StockX’s claim of being “unaffected.” Rising retail prices directly lead to rising resale prices. Which evidently leads to a rise in transactions. Yet, if resale markets plan to survive this crisis, it is essential to any success that they mandate policies to regulate cost. In order to find a sane balance between retail and resale. Else, with additional economic and production factors, the game will soon be over to all participants.
Some sneaker investors consider their deadstock sneaker collection as their financial back-up. They absolutely hate the idea of accessing it in the event of a crisis! In order for sneaker resale platforms to save their market, they should first get busy saving their customers.
What Does This Mean for Copping Sneakers?
It’s true that brands are closing shops and dropping their releases online. And it’s also true that the stay-at-home factor can mean 24/7 online presence for sneakerheads. However, the fact that literally everybody on the planet is planning to cop sneakers online at this time triples the heat of the copping game.
Competition will be untamed. To increase your copping chances, you will need multiple shipping addresses and payment methods. If you know all about proxies and servers like the sneakerhead you are, also be aware about this. Buying proxies should now exceed the equilibrium point between the number of IP addresses up for sale and the number of dollars in your pocket. Even in that case, you will need a sneaker bot to check for missions accomplished. To make successful use of your time and money.
Will Copping Be UNLIKELY Without Sneaker Bots?
Well, YES. The resale market is likely to hit extremes in the coming months. But with a sneaker bot, you can avoid that stress. So, if you’re looking to stay in the sneaker game simply because you love it or you are financially dependent on it, AIO BOT V2 is the best user-friendly way to cop limited edition sneakers automatically. With cook-optimized servers and sneaker proxies, AIO BOT V2 offers you the most advanced features on more than 70 sneaker sites.
It’s a severe time and ensuring health safety is top priority. But if you plan to continue investing in the sneaker business, you need to play it safe as well.
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