Back in the day sneakers weren't typically heavily branded, they weren't aesthetically pleasing and they were cheap. But they were universally loved. The main feature of the cheap Jordan shoes back then were practicality and comfort. However, over time sneakers started to come in a different category, that category being – Luxury. Nike has benefitted the most of this fashion trend known as Luxury footwear. Nike is reported to have control over one-fifth of the global athletic wear market. Nike’s most iconic brand is the Air Jordan, named after the NBA star Michael Jordan. What you may not realize is that Nike’s Air Jordan are manufactured in China and they cost just over $16 to produce. Yet, they sell at retail for over $250 a pair (and don’t even get me started on their resale price). Right now you may be thinking, where is my money going if not to the production of the shoe? Well.. What you’re really buying is a status symbol. When you purchase a pair of $500 shoes, you’re not purchasing shoes that are worth $500, what you’re purchasing is the ability to let everyone know at a glance, that you are wearing $500 shoes.
This is what many psychologists refer to as “signaling”. It is a process in which you are able to “signal” to your peers and community that you measure up. Another reason why many purchase shoes at an inflated price is low self-esteem. This makes sense, as if you’re feeling like your self worth is low, it may make sense in your mind to fix this with a product which is typically worn by those of a higher status. One thing I want you to keep in mind is that buying Air Jordans at resale price is a money sink and not an investment. You’re typically much better off buying a pair of UA Jordans. These shoes won go up as much in price due to the fact that they don’t have to spend money on advertising.