This article explores the phenomenon of the resale of sneakers at a significant profit. Some entrepreneurs have built successful businesses and others engage in this activity as a hobby.
Appropriate Subject Area(s):
Marketing, promotion, entrepreneurship
Key Questions to Explore:
- What is the impact of disruption in the marketplace?
Reseller, arbitrage, sneakernomics, profiteers, supply and demand, niche, bot, disruption
Copies of the article
Introduction to lesson and task:
Students will explore how a disruptive business model can change the landscape of an industry.
Action (lesson plan and task):
- Ask students if they ever shop at consignment stores. If so, what products are they looking for?
- As a class, use a T chart to discuss the merits of consignment and its drawbacks.
- Distribute the article for reading.
- In pairs, have students differentiate between a reseller and a consignment shop. Explore what is meant by the sneaker after-market.
- The article states that the industry is maturing. What does that mean? Review the life cycle of a product or industry. Brainstorm the signs that an industry is maturing.
- Ask students to write a brief from a manufacturer outlining their position towards resellers.
Consolidation of Learning:
- In pairs, have students draw a chart with the flow of high-demand sneakers from manufacturer to reseller. How is this the same as or different from other products? Choose two as examples.
- Students understand supply and demand and the impact on consumers.
- Ask students what a disruption is. Explore several examples. How is the resale sneaker business a disruption? Ask them: What is a bot? Have students encountered a bot? Why is a bot technology considered disruptive?