Streetwear brand Supreme heads the new vertical at StockX, the new market platform for the buying and selling of goods that is set up in a similar fashion to the stock market.
The streetwear vertical will include other brands such as A Bathing Ape, Kith and Off-White at a later date. More than 3,000 Supreme products are now live on StockX.
The online “stock market of things” was started in February 2016 via a partnership between Josh Luber, Greg Schwartz and Dan Gilbert, with sneakers as the first vertical. Luber provided his sneaker expertise; Schwartz his technology and product development background, and Gilbert — who is founder and chairman of Rock Ventures, Quicken Loans and majority owner of the Cleveland Cavaliers — his approval for start-up funding through his investment firm Detroit Venture Partners. Luber was the creator of Campless in August 2012, which monitored eBay to provide users with market analysis of sneaker resales and values. Other investors include Eminem, Mark Wahlberg, Ted Leonsis, Tim Armstrong, Scooter Braun and Ron Conway.
Luber said, “Streetwear has been on the ‘stock market of things’ roadmap since Day One,” adding that StockX’s sneaker customers have been asking for the vertical to be included. The company hired Rob Gonzales, who has more than 15 years in the streetwear sector, to head up the newest vertical.
The buy/sell platform that was created for the sneakers vertical — which guaranteed authentication of product listings, real-time market pricing, in-depth market analysis, historical sales/volume metrics and individual user portfolio tracking — has since been expanded to include verticals for watches and handbags. Sneakers are required to be brand new, or inventory that is considered “deadstock,” while handbags and watches are to be in “excellent used condition,” according to Luber.
Sneaker brands on the platform include Adidas, Nike, Jordan and Yeezy. Handbags on the site include Louis Vuitton, Chanel, Gucci and Hermès. Watch brands include Rolex; Cartier; Breitling; Omega; Patek Philippe, and Audemars Piguet.
According to Luber, the online platform connects buyers and sellers using an anonymous “live bid/ask” market in the same fashion that the equity exchanges operate. That provides buyers and sellers with transparency in data, whether that is real-time pricing, volume metrics or historical sales data. Because of the data transparency, buyers can buy immediately at the lowest price that is listed, or via a placed “bid” that any individual seller can choose to accept. Conversely, sellers can sell at the highest current bid or place an “ask,” leaving it up to any buyer to decide whether to accept. Luber said completion of any transaction occurs following shipment of the product to Detroit for authentication.
Luber said the company as of June 2017 had surpassed $100 million in gross merchandise value. He projected the gross sales run rate to pass $200 million by the end of 2017. The company this year hired Reginald Brack, former senior vice president at Christie’s, to head the watch vertical, and Cynthia Houlton, former vice president of business development at The Real Real, to lead the handbag category.
Brack said a master watchmaker will open every watch to inspect the movement and check internal and external components. “The watch must meet the watch manufacturer’s specifications for functionality and finish,” Brack said, adding that every component including straps and bracelets, even replacement parts, must contain 100 percent authentic products from the manufacturer. As for the “stock market model,” Brack called it “disruptive” for the pre-owned watch sector.