Adhering to new policies, resellers in Korea are no longer allowed to buy and resell footwear on the secondary market. The new regulations are most discriminatory to the individuals who are attempting to purchase shoes for the purpose of reselling rather than the second-hand buyers.
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As indicated by Nike’s South Korean office, the new clause prohibiting the purchase of sneakers for the purpose of reselling will take effect in October. Nike warned last year that resellers might face restrictions if they continue selling limited edition sneakers.
Nike is the most popular shoe brand to be traded on the resale market. Resellers often sell the brand’s products at a high markup. In July, a limited edition Air Force 1 series x Louis Vuitton sold at retail for KRW 3,51 million (approximately USD 2,440). The same sneakers sold on KREAM, an online resale marketplace, for KRW 14 million (USD 9,763).
Adjusting Nike’s terms and conditions would largely affect the traders who sweep Nike’s well-known products to clear their inventories, rather than individuals who resell them.
It has informed its retail partners that they will face a “supply curtailment” due to concerns that too many shoes are being sold to resellers who then resell them online for huge profits.
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Nike’s revised terms and conditions may set the precedent for future resellers and may influence how sneakers are traded in the future. As a result of the new policy, Nike is permitted to cancel orders for purchases if they suspect a person is purchasing to resell.
The latest move by Nike Korea puts the industry on high alert and raises questions about whether Nike as a whole or other brands will follow suit.