Demand hot for knockoff sneakers

Black marketers use global agility

DAVID PIERSON

LOS ANGELES — Kevin longed for a pair of Adidas’ “pirate black” Yeezys, a charcoal- colored edition of the ultrahip sneakers designed by rapper Kanye West.

But the 22- year- old Los Angeles-area resident couldn’t just walk into a store and buy them. The limited production shoes sold out shortly after their release, and resellers online were charging upward of $1,500, 7 ½ times the original retail price.

So the assistant high school football coach did what more and more collectors are doing to satisfy their Yeezy fix: He had a replica pair delivered to his doorstep from China.

“If I could readily buy a pair of Yeezys at the store right now, I wouldn’t buy fake ones,” said Kevin, who agreed to be interviewed on the condition his last name not be published to avoid jeopardizing his relationship with illegal sellers.

Kevin’s entry into the world of replica shoes was through the user-generated website Reddit, where collectors share photos of copycat shoes and contact information for sellers. They coach counterfeiters on how to get minute details correct like the proper length of a sock liner or the right amount of fuzz on a suede patch. With each batch of bootlegs, the replicas become increasingly difficult to distinguish from their authentic counterparts.

“Why pay over $1,000 for Yeezys when you can get a pair that looks the same for $120?” he said.

It’s a question vexing brands and copyright holders the world over. The

● rise of high-end fake Yeezys may represent a tiny fraction of the $ 460 billion knockoff goods industry, but they provide a snapshot into how widespread counterfeiting has become in the digital age — all to the delight of collectors who are so devoted to the shoes they’re willing to undermine the brand that makes them.

The shadow trade in sneakers shows the tools of globalization aren’t restricted to multinational brands. The replicas Kevin wears are recreated

expertly in China, marketed on social media, sold over reputable e-commerce sites and delivered discreetly by international couriers. And customers are more than willing to pay over $100 a pair for the fakes knowing it often takes an expert to spot the difference.

Sneaker designer Jeff Staple, who has collaborated with brands such as Puma, New Balance and Nike, said,“When I’m in the city, I like to pay attention to what people have on their feet and I’ve never seen more fakes ever in my life.”

Not since Michael Jordan left his imprimatur on a line

of Nike high-tops more than 30 years ago has a pair of sneakers had a bigger impact on popular culture or inspired more high-end counterfeits.

Nike remains the dominant athletic footwear brand in the U.S., commanding 37.7 percent of the industry’s market share by revenue in July, according to market researcher NPD Group. But that’s down from 39.5 percent the same time a year ago. Adidas, the second-biggest brand, has seen its market share grow to 11.9 percent from 7.3 percent in that period.

Winning West’s endorsement was a victory for Adidas. The rapper originally

worked with Nike but severed ties with the company in 2013. The Adidas’ share price has nearly doubled since the company released its first pair of Yeezys in 2015.

Collectors and resellers camped out in front of specialty-sneaker stores days before new Yeezy releases. Tech- savvy buyers downloaded bots that would scan online retailers for Yeezys the moment they became available. The shoe’s success even inspired other tie-ups between pop stars and clothing brands, like Rihanna for Puma and Beyonce for Topshop.

“They are the ultimate;

the top sneakers,” said Riley Jones, a sneaker expert who

has written for Footwear

News, Sole Collector and Complex, said of Yeezys. “A lot has to do with the slow rate [by which] Adidas puts out a new style. It keeps people hungry.”

By comparison, Nike’s decision to make more of its Jordans available dulled enthusiasm for the shoes.

“Today, anyone can walk into a Foot Locker and buy a pair of retro Jordans,” said Josh Luber, co-founder and chief executive officer of StockX, a stock exchange and marketplace for collectible sneakers. “Not only are they not selling out on the secondary

market; they’re not selling out at retail.”

The popularity of Yeezys and shoes like them has fostered the growth of an entire secondary sneaker industry that authenticates and resells hot shoes, led by StockX and the Los Angeles area’s GOAT, which has raised $37.6 million in venture capital.

But the clamor and high prices have also alienated a community of sneakerheads who don’t have the means — or desire — to pay Gucci prices. For them, the only alternative is getting replicas. And sooner or later, they find their way to a Reddit forum called Repsneakers.