Streetwear as an attractive investment segment

Until recently, fashion from  the street or streetwear was the domain of the younger generation, largely considered to be  a “niche” segment. With the explosive rise of online shopping and social networks, this segment has also become attractive tonumerous luxury brands and investors who see in it great potential for interesting yields. The value of the streetwear market is in fact expected to reach approximately 700 billion dollars in 2022.

In the beginning, streetwear was part of a subculture, predominantly that of the hip-hop and skateboarding community. The style, in which authenticity and with minor athletic accents prevailed, quickly captivated the world of fashion. Fashion designers such as Marc Jacobs were criticised for their strange aesthetic in the 90s. Today, however, their works are collectors’ items with a value distinguished by several zeroes at the end. 

Streetwear has potential
Last summer the sale of the Nike cult sneakers Moon Shoes  for a record-breaking 437,500 dollars shocked the world. With that, the streetwear segment undeniably entered the mainstream and is still confirming its potential for growth. The greatest sales are achieved on the Asian and American markets. The fashion e-commerce sector in Europe, however, should reach a value of 133 billion dollars by the year 2022, according to estimates, which represent 9.7 percent growth. And that is why streetwear is increasingly dominating  luxury brands. What was once the fashion of the streetis becoming a declaration of a certain status and is picking up the character of elitism. Not only do the brands themselves profit from it, but so do  celebrities, influencers, artists and design icons, who are creating their own collections. Lines form in front of shops for each newly launched item, while online auctions on the Internet are climbing to record numbers. 

The target is important
The growth of the streetwear segment is doubtlessly helped by its target customers, primarily represented by generations Y and Z. Their purchasing power is growing. According to surveys, this demographic should represent 55% of the luxury market in 2025. For this reason alone  many brands are targeting their marketing strategy at this group. The reach across social networks, advances in digital technologies and also the positive relationship to subcultures help, as  millennials are keen to be part of the streetwear community. 

The stifling of economic activity in relation to the pandemic has brought about changes in consumer behaviour. An active part of the population is gravitating toward trends that were until recently the domain of the younger generation. Thus,  brands are suddenly discovering new target segments. A solution that will be able to work in any configuration, effectively connect the online world with brick and mortar stores, target the right customers and bring exclusivity will be seen to be perspective.


The article was written for an investment and business series of the economic daily paper Hospodárske noviny:


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