#1 The Next Billion Dollar Industry πŸ‘Ÿ

Decoding an upcoming billion dollar industry, an investing strategy for bullish markets, & a potentially big green energy stock.

πŸ“Œ What you’ll learn in <10 minutes

  • The ins & outs of the billion-dollar sneaker industry in India

  • A strategy to help you make the most of bullish markets

  • A potentially undervalued stock in the green energy sector & other new stuff at Upsurge

πŸ”₯ Scarcity creates a high-margin market

With an investment of just Rs 20,000 you can make Rs 3-10 lakhs a month in profits πŸ€‘

And no, we’re not talking about crypto.

This is the sneaker reselling market.

The shoe-flipping business is all set to touch a billion dollars this year, in India alone. Let's decode the exciting world of sneaker reselling, covering its origins, profitability, and future potential ⬇️

Back in the early 2010s, a small group of enthusiasts started the sneaker reselling trend in India. They started buying and selling limited-edition sneakers online, slowly building momentum. However, it wasn't until the COVID-19 pandemic, when the world was suffering, that sneaker reselling truly took off. Young Indians jumped on it.

How does it work?

Sneaker reselling is a simple process. Resellers purchase limited-edition sneakers at retail prices and then sell them on special marketplaces at a higher price, earning a significant profit margin. Expenses include the purchase price of the sneakers, shipping fees, and costs related to marketing. Revenue is generated from the difference between the retail price and the selling price. On average, sneaker reselling in India yields a net profit margin ranging from 20% to 30%. The more exclusive a piece, the higher it sells for.

India offers several prominent platforms for the deed. StockX and GOAT, known international marketplaces have established their presence in the Indian market. Additionally, Mainstreet Marketplace, founded by Vedant Lamba, has emerged as a reliable and user-friendly platform. It has achieved great success, selling thousands of shoes and generating significant revenue.

Despite the risks involved, sneaker reselling can be a profitable business. The limited availability of popular sneakers and the high resale prices make it profitable.

Wondering what ignited the entire trend of Sneakers worldwide? πŸ€”

How did it all start?

Well, the story back dates to 1984, when Michael Jordan was drafted by the Chicago Bulls. At that time, Nike was looking to expand its brand into the basketball market, and they signed Michael to a deal worth $500,000 per year, along with a variable share in the revenues, which was unimagined back then.

The first Air Jordan was released in 1985, and it was an instant success. However, it was also controversial. The NBA had a rule that prohibited players from wearing shoes that were more than 50% white. Nike decided to defy the rule and paid Michael Jordan's fines every time he wore the Air Jordans. This only served to increase the popularity of the shoe, and it helped to make Jordan a global icon. Pretty sure you must have watched the AIR documentary uncovering this game-changing partnership on Amazon Prime.

Over the years, Nike has released dozens of Air Jordan models that create a sense of exclusivity and command a significant price in the resale market.

SneakersΒ an asset class

In recent years, the sneaker market has undergone significant changes. Exclusive releases are now difficult to access and quite expensive. Some people even consider investing in sneakers as an asset class. Gerome Sapp, the CEO of Rares, says that sneakers have consistently outperformed traditional assets like gold and S&P 500 over the past decade. For instance, Nike Dunk SB Low Paris has grown by almost 15,000% since its release date.

Looking ahead, the future of sneaker reselling in India appears incredibly promising. The industry is projected to grow 5x from here by 2025, indicating substantial growth opportunities πŸš€

Would you bet on it?

πŸ“ˆ A strategy for bullish markets - Momentum Investing by Mr. Alok Jain

Momentum Investing is all about buying high & selling higher. Let’s simplify this idea and make the execution even simpler by learning the strategy from an expert.

This is a strategy by Mr. Alok Jain, Founder of Weekend Investing. We will discuss the rules of the strategy first, and then discuss the back-tested results. So let’s begin. ⬇️

RULES OF THE STRATEGY:

1. First, we will apply the Relative Strength Index (RSI) indicator to calculate RSI for 22 days, 44 days, and 66 days for all the CNX200 stocks. Then, we calculate the average of the 3 RSIs for each stock.

2. Then, we arrange the stocks in descending order, based on their RSI, select the top 20 stocks with the highest average RSI, and invest 5% of our funds in each of them.

3. We repeat this process every week. In any of the weeks, if any of the stocks we invested in the previous week drop out of the list, we sell that stock and invest in the new stock that has made it to the list.

Looking at the graph, you can see that if you had invested 1,00,000 in 2020 using this strategy, you would have made 17.95% returns per annum. On the other hand, the index would have made just 15% returns per annum.

Learn the complete momentum investing strategy from Alok Jain himself, where he teaches you how to generate an extra 1-2% returns every year and manage drawdowns, with a simple, yet unique strategy:

♨️ A potentially undervalued green sector stock & other new stuff at Upsurge

  • We came across an interesting green sector stock, find out which:

  • We’ll soon be going live with new courses on Coffee Can Investing & Renko Charts Trading Strategy πŸ“Š

  • We have refined the video streaming of our courses at Upsurge for a better user experience βš™οΈ

  • Learn, ask, and discuss all things finance - Join our Community here.

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