Some Kiwis see rare sneakers as investment opportunity

Source: 1News

Sneakers are joining the leagues of viable investments as high inflation and tumultuous stock markets push Kiwis into the potentially lucrative trade.

People who trade and collect the shoes are known as "sneakerheads". While the collecting hobby isn't new, the reseller's market for the shoes is on the rise.

The industry was worth an estimated $15 billion last year and is now forecast to reach nearly $50 billion by 2030.

The co-owners of Sneaker Vault NZ, Sean Agustin and Emma Sadgrove, said carefully curating their sneaker collection had paid off.

"It's helped us pay a lot of bills, save up for a car," Agustin said.

"Helping pay for our student loan because that can get quite expensive," Sadgrove added.

The pair's business was born out of a lockdown side hustle two years ago, but is now expecting major windfalls.

"We move at least 60-plus pairs of shoes a month… We'd expect it to be around 80,000 [in] sales at the end of the year, or at least $15,000 in profit," Agustin said.

Meanwhile, Webb's Auction House held its first sneaker sale recently and is planning for more. The auction house's Christine Power said streetwear was evolving as a category of investments.

"Depending on the sneaker that you invest in, you can have a higher return on investment than gold," she said.

"Streetwear is obviously evolving and other auction houses internationally are recognising that and making a special category for that."

But a financial coach warns Kiwis from jumping into the market too quickly. Shula Newland suggests people should think before investing.

"I wouldn't be investing a lot of money, unless you're prepared to take that risk of losing it," she said.

"It's very much a trend and you do wonder how much of it is going to be a fad... at the end of the day, it's a speculative investment and we've got to be aware of that."