Is the sneaker market in decline?

Who doesn’t have a pair of sneakers lying around in their wardrobe? Whether you’re walking around town, going to work or out for a night on the town, sneakers have become a must-have.

The market has been booming for several years now. But some specialist sites have been running into difficulties. Wethenew has gone into receivership, and Kikikickz, a resale specialist, has gone out of business.

The resale market, which was once booming, seems to have lost its appeal. At one time, some limited edition pairs were selling for two or three times their original price.

Is the whole sneaker culture suffering as a result? “The resell culture is diminishing in Luxembourg. But sneaker culture itself is not in decline,” said Matteo Mancinelli, head of the Version Originale stores. “It’s people who have tried to buy models at normal prices in order to resell them at much higher prices. It was a wave, popular especially between 2015 and 2020, which is now passing.”

In fashion, everything moves very fast

Mancinelli talks about sneakers as a passion born when he was a teenager. In his shops, selection is based on several criteria: the desires of customers, a personal sensibility and a flair for upcoming trends. “You always have to be one step ahead,” he said. Because in fashion, everything moves very fast.

Limited edition models are selling less these days. It’s the trendier, more “mass-market” pairs that are going fast. “However, in our selection, we continue to seek originality, and that’s what we’re known for,” Mancinelli said.

And often, the big cities set the tone: “It takes time for trends to reach Luxembourg. They settle in later than in the big cities,” the Milan-born manager said.

Jonathan, a salesman at Scoop 86 in Bertrange, makes a similar observation: “At the moment, the market is fairly uniform. We mainly sell models that are found elsewhere. But we’re always trying to offer rarer collections. We have to compete with giants like Courir and Foot Locker, who have a strong presence here,” he explained. Despite the difficulties, he keeps a smile on his face: “It’s a great challenge.”

A trend can quickly run out of steam

According to analysts Statista, the sneaker market is expected to grow by more than 5% a year between now and 2028, topping the €70 billion mark worldwide by 2025.

Markets often work like snowballs: a trend can quickly run out of momentum. To stay afloat, shops have to keep innovating: “You have to find products that the others don’t have, so that people are compelled to come to you,” Jonathan said.

But in his view, the real competitor is the Internet. “E-commerce is clearly enemy number one,” he confided. Any ideas on how to stand out from the crowd? “Why not work with influencers,” he said.

Mancinelli agrees: “E-commerce is a major competitor. But on the internet, there’s no service, no advice and none of the professionalism that shop assistants provide.”

(This article was originally published by Virgule. Translation, adaptation and editing by Lucrezia Reale.)