Australia is the new hub of a global e-commerce platform aimed to stop fake runners hitting the multi-billion dollar sneaker resale market.
Australia is the new hub of a global e-commerce platform aimed to stop fake runners hitting the multi-billion dollar sneaker resale market.

New bid to bust billion-dollar fake sneaker scene

A global e-commerce platform has set up an authentication centre in Melbourne to stop fake runners hitting the multi-billion dollar sneaker resale market.

The US-based StockX, which counts Eminem and Mark Wahlberg among its investors, says the move to Melbourne comes as demand for resale top-shelf runner brands has increased by 3000 per cent.

StockX Australia Kelly Godfrey said to combat an "opaqueness around the secondary market" and a "lack of trust," the brand started an authentication program to protect customers.

"Each (authenticator) is armed with a robust database of proprietary information, gleaned from our years of experience in the field, to effectively assess the legitimacy of each and every product," Ms Godfrey said.

Steph Jones, a Stock X Authenticator, inspecting a shoe. Picture: Nicki Connolly
Steph Jones, a Stock X Authenticator, inspecting a shoe. Picture: Nicki Connolly

"Whether you spend 50 dollars or 500 dollars, any time you make an investment you want to know that what you're getting is the real deal.

"The thriving e-commerce and tech ecosystem in Melbourne made it the perfect choice for our first authentication centre in Australia."

According to latest figures, Ms Godfrey said the top traded products in Australia are Nike Flyknits, an Air Jordan retro brand, and a 2017 release from Kanye West's Yeezy range.

Ms Godfrey said Flyknit sales have "increased 3000 per cent year-over-year in Australia."

StockX also investigates the legitimacy of apparel, electronics, accessories and collectibles offered on the site.

Other sought-after items on the site include Fear of God clothing, Panini basketball cards and merchandise by the US artist KAWS.

A survey of 1000 Australian adults, conducted by The Harris Poll, and commissioned by StockX, found 19 per cent have either bought, or plan to buy, limited-edition sneakers in 2021, with 42 per cent seeing it as an "investment opportunity."

Asked about the percentage of fakes on the resale market, Ms Godfrey said: "We don't reveal this level of data, but … we see far fewer fakes than we once did, which is a direct result of our authentication process."

Analysis firm Cowen estimates the global and US resale sneaker market is worth $6 billion and $2 billion, respectively.

 

Originally published as New bid to bust billion-dollar fake sneaker scene



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