Price Expectation – Nike React 87 x Undercover Jun Takahasi

With the Nike’s relatively new model React 87 now starting to sink in on the market, we are now entering a phase of consumer acceptance or rejection.  Unlike retros, it is usually hard to gauge how receptive the shoe is on the market and often times only time will tell.  What makes Nike so good is aside from the traditional proven models such Air max 1 or air force 1s, Nike continues to push the boundaries towards different new designs to continue to solidify their name as the number 1 shoe brand in the world.  The initial release of the OG colourway Sail and Black earlier this year in July showed some promising market acceptance in the form of steady re-sell prices.  Re-sell prices is a good gauge to determine whether or not a shoe is in demand or not.  As part of Nike’s strategy of marketing and pushing out new models is to marry the new model with big house name collaborations to make noise and give the consumer a reason to buy, but now most of you out there from a re-sell perspective is thinking will this pair go up in re-sell price?

 

Supply

Part of Nike’s strategy to create hype for a shoe is no surprise nowadays…and that is to make the shoe limited.  Well this pair like no other were of course once again released in limited quantities and only available at your traditional tier 0 accounts (not sure how they define this whole tier 0 thing at Nike now with all the changes…but we will soon find out).  The fun part of this release was it came in 4 different colourways, which in a way pumps up the quantity on the market, but the clear bread winner out of the 4 colours is the Green Mist.  As you can tell from StockX sales history with 2 weeks in, the number of transactions is about 634 which is relatively low and it is a good indication that pairs on the market are limited.  However, we always have to take this number with a grain of salt because it could be that people are just holding onto pairs and not looking to sell at the moment.

 

Demand

From my opinion the colourways for this collab were quite unique and with that said it might not be a must cop for everyone.  However, when the first release of the official images prior to the release surfaced it was clear the Mist colourway was going to be the pair everyone would want.  When the react 87 first came out everyone was comparing this pair to the Tom Sachs Mars Yard, but of course those were much more limited and resell prices are now through the roof.  I personally don’t think these will ever get to that price point, but I could see the Mist colourway being a potential candidate of climbing the ranks in terms of re-sell prices.  The other colourways such as the Lakeside, Volt and Chalk are good, but I honestly don’t think these colourways will do numbers over the long run.  At the end of the day, this pair is kind of stuck in limbo of its target audience group.  Undercover has traditionally been fashion heavy driven brand and whenever you cross over with a sports athletic heavy brand like Nike it’s hard to find the perfect audience group.  True sneakerheads might not be able to relate to the fashion brand and vice versa true fashionheads might not be able to relate to the sneaker brand.  The small niche of BOTH heavy sneaker and fashion customers will definitely see this as a must cop, but it’s hard to say how big this niche may be.  At the end of the day, it is still a noteworthy Nike collab and generally speaking over time prices should appreciate.

Conclusion

For re-sellers looking to make money on this shoe…I probably will stay away from this pair if you are planning to buy them now at market price and re-sell higher in the future because your holding period could be quite long compared to other options available on the market.  If you’re a buyer looking to buy the shoes to wear, I probably will wait for another 2 weeks to a month to let prices settle in even more if you are looking for any of the 3 pairs (Lake, Volt, Chalk).  However, if you’re in the hunt for a pair of Mist, I think you should try to get in now because I personally don’t think this price will go any much lower as this pair is in demand.

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