Brett Nilsen | October 27, 2022
This past week, news broke that Goat has officially agreed to acquire Grailed, which, if executed well, will be a phenomenal move for the company and could put them at the top of the resale market.
As of now, StockX is the industry leader by market share of all of the main product types (Sneakers, Streetwear, Trading Cards, Accessories, Electronics, and Collectibles) along with their market data being the main point of reference for any reseller in the industry, from smaller players to even Urban Necessities. However, StockX splits the market for deadstock items with several other platforms, such as Goat and eBay, and they have neither the infrastructure nor the intention to build into the market for used items.
That is where Goat comes in. Goat holds a close second place within the market for new shoes, but they have also been the leader in buying and selling authentic used sneakers ever since they came onto the scene in 2015. eBay is competing with them fiercely now with their AG program, but they have a ways to go before they can build an interface as user-friendly as Goat’s when it comes to listing and searching for used shoes.
In the past couple of years, Goat has been making many other impressive moves to gain more market share, such as partnering with Flight Club, receiving an investment from Footlocker (the alias platform for bulk sellers), and their introduction of Goat Storage / Consignment. Goat has clearly been focused on winning in the entire sneaker market – deadstock and used.
In addition, Goat has recently been making their own moves into apparel, but that has yet to take off really at all, especially in comparison to StockX. But then, [Enter Grailed]. Grailed has been the go-to spot for purchasing both new and worn hype, designer, and vintage clothing for years now. They also have a solid grasp on new/used accessories and shoes, meaning they are EXACTLY what Goat needs to take their company to the next level. With this acquisition, Goat could be the leading market to buy or sell any type of new or used dope products.
With a significant position in new and worn shoes, consignment, bulk selling, new and worn apparel, and all other new/used goods you can currently find on Grailed, the only area Goat would be losing to StockX is the general acceptance of their market data. But, I think this will change as they continue to gain market share.
Goat’s recent initiatives, strategic partnerships, and consistency in fees have helped make it a reliable and well-established platform for sneaker buyers and resellers, but a well-executed acquisition of Grailed would catapult the company into an even more favorable position for winning in the sneaker and streetwear space as a whole.