StockX is a resale market for buying and selling highly sought-after sneakers, streetwear and luxury goods.
Standardizing the sale of preowned products, StockX capitalizes on its unique selling point of verified authenticity, consistently sorting out authentic products from the counterfeits that have been known to flood other online marketplaces. The company has already started to bring in $700 million in annual revenue and is now valued at $1 billion after its most recent round of funding.
This follows the trend of companies capitalizing on the rising popularity of acquiring rare, limited-edition sneakers. In the last six months, luxury e-commerce retailer Farfetch bought sneaker retailer Stadium Goods for $250 million and Foot Locker invested $100 million to gain a majority stake in the popular sneaker reseller app GOAT. StockX’s success is tied to its ability to align nimble digital marketing with the fast-moving dynamics of the reseller market.
With new product drops introduced as fast as hyped collaborations sell out, high-heat product marketing demands aggressive paid search strategies. In the first quarter of 2019, a quarter of Google search results on top branded streetwear keywords were Shopping ads, facilitating a visual experience for consumers who know exactly what they are searching for. StockX owned the majority of these Shopping ads, and among other resellers and e-tailers like Amazon and Farfetch, Nike was the only activewear brand tracked in Gartner L2’s report on the topic that exhibited competitive Shopping ads ownership on branded streetwear keywords. To justify the cost of acquiring customers through paid search, StockX creates customer relationships through innovative postpurchase tactics. Tapping into the unboxing video trend, StockX offers free shipping and a feature on the brand’s account (@StockX) for customers who tag StockX product unboxing content on Instagram posts.
Activewear brands can learn from how resellers like StockX utilize digital to not only acquire new customers, but also develop relationships throughout the purchase journey to increase lifetime value.