The Secondary Market Of Sports Shoes Continues To Be Hot. The US Foot Locker Also Invests.

The secondary market of sports shoes continues to heat up, and another resale platform gets financing.

Foot Locker, the largest sporting goods retailer in the US, announced in February 7th that it had invested $100 billion in sports shoes resale APP GOAT.

This is the largest investment / financing paction to date for both sides.

GOAT was founded in 2015, and like most resale platforms, its business model is based on the paction process into an identification link, and then charges fees.

After accepting this investment, GOAT has a market capitalization of more than 5.5 billion, and the total financing amount of the company is now up to 197 million 600 thousand US dollars.

With the support of Foot Locker, GOAT plans to expand in the US and overseas markets.

Foot Locker is a first-class distributor of brands such as Nike, Adidas and Puma, and has more than 3000 stores in North America, Europe and Asia.

The industry has different opinions on the scale of the second hand shoe resale market, which is widely circulated in 2014 by another resale platform StockX, which claims $1 billion (later they were revised to 60 billion).

In the domestic market, a similar company has a poison APP from tiger flags, and Yoho has recently launched a sneaker saucer good UFO on its sneaker trading channel.

This kind of resale platform has been favored by all kinds of capital. There are fashion giants such as Farfetch and LVMH behind them. They bought Stadium Goods of solid shoe store pformation electronic platform for $250 million, and also sports retailers such as Foot Locker.

GOAT's peculiarity in these competitors is that they exist at the very beginning, based on mobile APP, and only sell sports shoes (unlike StockX is increasing handbags, watches and street clothing, Grailed also provides luxury clothing), which has already made some brands start to regard GOAT as a new retail channel.

GOAT, already known to have 11 million users, says that 25% of its inventory is brand new sneakers.

In the last quarter, sales of Foot Locker declined by 0.5%.

In addition to facing the challenge of e-commerce, Nike, the biggest customer, is trying to pfer to a larger proportion of direct selling business. This trend will not stop until Foot Locker proves that it can better contact consumers.