Why Investors Pour Millions Into Streetwear

In what felt like a mere flash of lightning, streetwear, a term that is continuing to be even less tethered to just one definition, has gone from the niche and underground clothing category to a more mainstream industry. Streetwear is now shaking up the fashion industry, as blue-chip companies are creating and dropping limited-edition streetwear t-shirts, jogger sets, and sneakers. These are the same articles of clothing that might have only piqued interest in smaller groups of teens.

If streetwear – hoodie, shirts, sneakers, joggers, and the like, have only experienced a small target audience, then why are businesses like FourOneTwo rising? More importantly, why are investors pouring hundreds of millions of dollars into the leading online marketplaces of streetwear?

  1. Streetwear is the new luxury

Did you know, that in 2019, a pair of Nike trainers were sold for a whopping USD 437,500? Obviously, this is a very luxurious purchase!

The proliferation of streetwear across the North American high street is becoming more pronounced. Big and small brands alike are taking advantage of these almost cult-like followings, a trend that is driven by the younger generation.

With more people wanting to wear streetwear for its luxury, you can see more brands investing by the millions.

For instance, look at Supreme, which is now an iconic streetwear brand that began as a humble skate shop in the 90s. They received a multi-million dollar boost in collaborations and investments from Louis Vuitton. This has brought the Supreme’s value to more than USD 1 billion.

Streetwear is now the new luxury retail, which is only one of the many major themes defining the urban retail models.

  1. Gen-Z are investing in their wardrobes

As the latest generation of consumers, the Gen-Z and millennials, are becoming better-educated shoppers, we can see that streetwear is becoming more of a staple and investment.

Though the younger generation is price-conscious, they also look at the value of their purchases. Think of it as consumers investing in their social image.

With streetwear like sneakers only rising in value over time, the more inclined consumers feel to invest in them, with the hopes of its value rising to sell in the next few years.

  1. The ‘hype’ continues

You would think that streetwear is only a passing trend. If it is, then it’s a pretty long one!

Streetwear has been around for decades, rising in popularity recently for its functionality and touch of luxury. The sneaker industry, in particular, is only growing from here on out.

This is all because of the ‘drop’, which is the new sales tactic in the luxury streetwear industry, supercharging the classic supply-and-demand model. The hype and ‘scarcity’ of limited-edition streetwear only drive up sales and branding, which is what investors are out for.

Wrapping It Up

More and more investors are looking into streetwear and for good reason. With so many consumers wearing AND collecting streetwear for better value, you can only expect the industry to grow.

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