Can a social sneaker sales site stand on its own two feet?
The number of websites that we use, whether for shopping or socializing, seems to be shrinking. While we once traveled to all different corners of the web to research and discuss our specialized interests (and make purchases), our web experiences are now more consolidated. We mostly stick to our go-to e-commerce giants, like Amazon, and our social media giants, like Facebook. But there are still niches in which smaller websites succeed by catering to hyper-specialized interests. A new start-up hopes that one of those niches is sneakers.
Sneakmart is a combined e-commerce platform and social network targeted specifically at sneaker collectors who like to discuss their hobby and buy and sell their shoes. According to a press release, the marketplace was designed and launched by 17-year-old CEO and founder Anthony Debrant, himself a “sneakerhead,” to facilitate fellow enthusiasts discussing and selling vintage, classic and new collectible sneakers. The marketplace is built around a website as well as a mobile app that users can download for free. Mr. Debrant said that mobile is the “go-to search tool for sneakerheads.”
Although big names like Facebook, Twitter and LinkedIn dominate the social media world, plenty of other sites have dedicated user bases. Last year, Time detailed the best social networks outside of the big names. Most of those mentioned had specific niche audiences. NextDoor, for instance, lets people interact online within a given neighborhood, RallyPoint is set up exclusively for the military and military families, and Untappd is for beer aficionados.
Just how well a single interest-driven social network can also act as an e-commerce site remains to be seen. But sneaker collecting could be a good space for trying it. Hardcore sneaker collectors pay big bucks for rare items (generally on auction sites like eBay). According to Sneakmart’s press release, the secondary sneaker market is a $1 billion industry.
Sneakmart is not the only start-up trying to appeal to sneakerheads. A Detroit-based start-up called StockX recently debuted an online marketplace meant to act as a “stock market” displaying real-time cost fluctuations and other information for high-ticket sneakers.
Discussion Questions
DISCUSSION QUESTIONS:
Can niche social media/e-commerce sites stand out against bigger, more general social media/e-commerce giants? In what other areas of “fandom” besides sneakers could apps like Sneakmart catch on, and why?
Poll
BrainTrust
Max Goldberg
President, Max Goldberg & Associates
Ralph Jacobson
Global Retail & CPG Sales Strategist, IBM
There is plenty of room for niche social/e-commerce sites to be successful. Almost any area that has a rabid base of fans could be ripe for custom e-commerce. Most areas with lots of fans already have social sites. It’s not difficult to add e-commerce.
Smaller social sites definitely have an uphill battle against the big sites, however, I remember when Myspace dominated social channels and had more active members than the entire population of Mexico. So as long as the sites remain active and relevant, there can always be room to grow.
It’s quite possible that “old” sites like eBay have begun to see their day. There’s plenty of room for e-commerce specialty sites — those that either have a big following or those that can/will develop a big following based on what they have to offer. Areas of fandom = ALL sports-related gear, souvenirs and memorabilia, although, would there be problems with “copyright” or whatever it’s called in this realm of selling?
Trying to commoditize this marketplace can only really thrive if the company puts in the effort around building the market. I worked with The Pit back in the day which was a similar idea — isolating the trading card market and building a dynamic marketplace around it. Users reacted well and within a few years Topps bought the marketplace. The real reason the market grew is that the traders (users) felt a sense of being a part of a bigger whole. So just being a centralized clearing house of sneakers won’t cut the mustard — the real play is to build out the market to make “playing the market” more engaging (options, puts, etc.).
Knowing this genre well, I would have to argue that Craigslist’s negative aspects were the main driver of this phenomenon. The problem with Craigslist is no one trusts each other or sellers lowball each other and bait-and-switch on buyers.
What social media selling accomplishes is it creates a level of familiarity and control of the marketplace by banning bad sellers and lowballing buyers and creates self-governance for the marketplace. Also there are real experts who can advise on a product or product history versus fake reviews on major sites.
Retailers can thrive by allowing their social media to facilitate this kind of self-governance instead of pushing out press releases and announcements.
Hyper-focused websites and communities can absolutely compete against the e-commerce giants. There are many opportunities to find a niche and mine it. Retail is detail and sites like Amazon and Walmart are ok for commodities but they are not a specialty mecca. The virtual world is evolving to a specialty world where people seek out the companionship that niche social media sites provide. We are seeing a movement from general to specific, from the whole world to the local and with that comes specialty retail, secondary vintage markets, alternative pay services, barter, cooperatives, etc.
The jewelry market, art, lobster (my neighbor in Maine) and Alaska crab and salmon are all curating special interest groups as we speak … the world is our oyster!
“The number of websites that we use, whether for shopping or socializing, seems to be shrinking….” Not sure what world Mr. Stern is living in, but it certainly isn’t mine, or one that I’ve visited.
Anyway, back on topic, there’s always been a place for niche retail, and I don’t see why the move to online will change that; on the contrary, I think online — by reducing costs and expanding audiences — has made niche retail more viable than ever.
Niche social media/e-commerce sites can stand out against more established and larger sites but in order to survive, they need to build a uniqueness that can’t be reproduced — and being first in the market is not a sustainable difference in this case. As soon as the more established sites begin offering the same services and access, the niche sites will lose their appeal. Niche site can survive, but the nature of being a niche site is that it will never be a commercial success.