In recent years, top brands have been producing streetwear for the high-end market. For instance, there are hoodies worth $7 thousand from top brands. You can even find backpacks worth as much as $500. The major drive behind all this is streetwear. A casual clothing style wore as part of the urban youth subculture. It is one of the fastest growing sectors in the fashion world and is estimated to be worth slightly over $300 billion.
The Various Styles
Various styles, that can be found at a store such as 24mx are derived from the 90’s surfing, skating, and hip hop world. They helped to inspire new looks of oversized and baggy clothes, which made wearers feel more in tune with the streets. In the recent past, streetwear companies have seen a lot of growth. Around 2010, the sector was seeing a growth of as much as 40 percent per year. It has settled at around 5 percent, which is expected to hold well into 2020 and beyond. Various brands have come up and taken the younger generation by storm. They make optimal use of limited ad budgets to ensure they sell out their goods. The strategies usually entail producing limited amounts of products to promote a feeling of exclusiveness. They take advantage of the high-level desire by customers to access limited items.
Streetwear is not exclusive to backpacks and hoodies. It also encompasses items such as shoes and other accessories. The retail market is quite huge. Buyers will buy the items early and attempt to resell them on sites like eBay for higher profits. They often take advantage of the limited supply.
Collaboration with High-End Brands and Major Investments
While growth has slowed down in recent years, the streetwear sector is still getting huge investments. For instance, the Carlyle Group, a private equity firm recently purchased a huge stake in one of the largest streetwear brands in the world. The investment firm bought a 50 percent stake in Supreme for $500 million.
This is the first time an equity firm has made such a huge investment in a streetwear brand. This means that Supreme is now valued at slightly above $1 billion, which is a huge deal. It shows that streetwear is on the way to being mainstream.
Mainstream brands are also taking note. Recently, Supreme was working with Luis Vuitton and this led to the resale prices being quite high. The two companies were working on a backpack worth $3,900. However, the resale for it online was over $9,000.
Star Power in the Sector
Another reason streetwear is becoming popular is that celebrities are getting in on the action. Megastars like Drake and Lil Wayne have their own streetwear brands. It is helping to promote this sector, which is bringing in more money and resources to help it grow. In general, this sector is not going away anytime soon. It is no longer a style, which only attracts teenage boys. As more designers join in, it is becoming a style for anyone who wants to look and feel cool.