TRENDING: Sneaker Mania Marches On

Would you pay over $15,000 for a pair of sneakers that aren't even new? No? Well, some do.

The resale market for high-end sneakers has grown exponentially in the past few years, with some estimates valuing it up to US$1 billion, The Globe and Mail reported last year.On top of that, the athletic footwear industry is growing overall, albeit at a slower pace than a few years back. In the U.S., sales were up 2 per cent in 2017 to almost US$20 billion, according to market research firm NPD Group.

Sneakers have not only edged their way onto the fashion scene, with debuts on the runways of brands such as Céline, Balenciaga and Gucci, but strides are being made elsewhere as well. We've seen more celebrity tie-ups, limited editions, sports and so-called athleisure trends, and when it comes to the resale market, even stock-market-like platforms.

Lace up as we take a peek into what's happening in the world of sneakers.

Celebrity Sneakerheads

Brand tie-ups with celebrities are usually a sure-fire way to achieve cult status, and limited-edition collections help drive demand. The top athletic footwear brands have lucrative contracts with A-listers in music, fashion and/or sports. Whether the sneakers fall into the performance or fashion categories, celebrity collaborations grab attention.

Among some of the best known tie-ups is Nike's partnerships with NBA stars LeBron James and Kevin Durant. Nike controlled around 50 per cent of the U.S. athletic footwear market as of last August, according to NPD data cited by The New York Times.

German sportswear brand Puma recently partnered with music and media mogul Jay Z and his company Roc Nation on the launch of a new basketball line. Puma has also joined forces with the likes of Rhianna, Kylie Jenner, Selena Gomez, The Weeknd and Cara Delevigne, as well as numerous rappers. In the sports world, Puma signed basketball star Marvin Bagley III to a lucrative 5-year deal that will pay him more than his NBA contract.

Adidas, which was the fastest growing brand in 2017, according to NPD Group, has successful partnerships with Kanye West (Yeezy label) and James Harden. In fact, Yeezy sports shoes are so popular that some retailers have launched lotteries, with the lucky customers being offered the chance to purchase them.

Lifestyle Trends

The blurring of casual wear and sportswear, commonly referred to as athleisure, has been giving a lift to the industry. NPD Group reported that sports leisure sales grew by 17 per cent last year, compared with a decline of 10 per cent in the performance category, which includes running and training shoes. After decades of accepting that foot and back pain is the price of looking "cool," consumers are embracing comfort. Comfort is also key for the world's aging population. A global interest in healthier lifestyles, greater disposable income and high-profile sports events are all driving demand for the global athletic footwear market.

The Sneaker Stock Market

Serious sneakerheads snap up hot, limited edition shoes and offer them for resale with markups of anywhere from 200 to 2,000 per cent on digital sites like StockX, a start-up that counts celebrities like Mark Wahlberg and Eminem as investors. The sneakers are viewed as assets and resold to eager buyers. Taking a page from regulated stock markets, StockX uses indices which list the shoes with ticker symbols. It acts as the intermediary by showing bid-ask prices, running sales figures, and trending styles to help buyers and sellers make informed decisions.

Massive love-ins like Sneaker Con also attract collectors hoping to score a coveted pair or two. The famous sneaker convention came to Canada last year for the first time, and attracted record crowds.

With all the hype, is the sneaker bubble about to pop? Hard to say, but demographic and lifestyle trends so far has given this fad some legs.