How much would you pay for a pair of sneakers (or sneakers for UK readers)? London-based entrepreneur Moses Rashid serves a happy constituency of paying thousands of pounds for the right pair – and he’s building a multi-million pound business out of that trade.
“There are a lot of people who see sneakers as an alternative asset class; sneakers go up and down, just like other assets, and have long-term investment potential, ”he says. “Our customers buy in large part because they want to wear their purchases, but that element of investment is part of the appeal.”
Rashid launched The Edit Man London in January 2020, but has just renamed the company The Edit LDN. The tweak reflects the growing interest of women in its products, in an area that was once a men’s domain.
For those unfamiliar with this end of the fashion industry, streetwear retailers have increasingly opted in recent years for limited editions of some of their products – sneakers, but also other clothing. A number of designer brands have followed suit. This has spawned large companies in the resale market, with buyers buying products in demand and reselling them at a profit.
Rashid’s rhetoric is that customers who want these items – and there are many, despite the high prices – are in a difficult position. Sometimes retailers will make direct market sales, have raffles and lotteries to determine who can buy on “day of delivery,” but your chances are limited. This lets you buy from a reseller, often on auction sites like eBay or through social media, which means it takes a long time to get your hands on the goods and you worry about fake items. and payment problems.
Instead, The Edit LDN has built relationships across the industry so that it can secure in-demand products on behalf of customers. The platform stores new and pre-loved products from a variety of brands including Yeezy, Jordan, Louis Vuitton, Dior, Off-White, Supreme, Fear of God – buying from them is like buying from any other store.
“We wanted to disrupt the reseller market – to become an easy-to-use, one-stop-shop for collectors and investors,” says Rashid. “We’re solving those worries people have about speed, convenience, negotiating a fair price, and authenticity.”
Rashid thinks The Edit LDN has solved this mission. “We set out to create a destination that opens up and enhances opportunities for anyone who wants to own extremely limited edition products – essentially, we make the inaccessible, accessible,” he says. “We regularly sell sneakers and streetwear clothes worth £ 1,500 each. Recently we sold a Gucci TNF jacket for £ 9,200. “
You might think there would be relatively few buyers at such prices, but Moses points out how his platform focuses on different segments. Edit LDN has a range of products under £ 200, a more expensive line that appeals to more affluent customers who shop multiple times a month, and also sells to wealthy customers. Customers in this category include footballers, royals, and other celebrities.
It is not a niche market either. An analysis released by Cowen Equity Research last year estimated the global sneaker resale market to be worth $ 5 billion – by 2030, it expects that number to grow to $ 30 billion.
Edit LDN is ramping up that rapid growth, with sales growing at an average rate of 60% month-over-month since launch – and 80% month-over-month in 2021 so far. The company raised £ 200,000 in investment early on and plans to launch a seven-figure funding round later in the year. “By the end of this year, The Edit LDN will be worth £ 10million and given the hyper rate of growth in our sales and revenue, we are sure to be three times” our valuation by the end of 2022 ”, predicts Rashid.
It’s not just about making money. Rashid is a collector at heart, starting the business after years of buying exactly the kind of streetwear he now sells in droves. “I built a business from my passion,” he explains.
The company is also keen to foster a sense of purpose. Last year, the company collaborated with artist McCrow as part of the One Less Gun campaign to create a sneaker with AK-47 rifle bullets. Most recently, The Edit LDN worked with Gary James McQueen; In order to raise funds for the mental health charity Mind, the platform sold exclusive t-shirts featuring the famous McQueen Vanitas skull.
There is also an element of sustainability in the limited edition resale market, Rashid points out, given that products are often owned by multiple buyers over the course of their lives. “These are questions that are important to us and to our community,” says Rashid. “We recognize that we are currently in a very hot market, so we want to use our platform to have a lasting impact wherever possible.”