[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.35,0:00:06.36,Default,,0000,0000,0000,,This is the Air Jordan 3 Black Cement.
Dialogue: 0,0:00:07.12,0:00:10.49,Default,,0000,0000,0000,,This might be the most\Nimportant sneaker in history.
Dialogue: 0,0:00:11.11,0:00:12.91,Default,,0000,0000,0000,,First released in 1988,
Dialogue: 0,0:00:12.94,0:00:16.48,Default,,0000,0000,0000,,this is the shoe that started\NNike marketing as we know it.
Dialogue: 0,0:00:17.05,0:00:20.84,Default,,0000,0000,0000,,This is the shoe that propelled\Nthe entire Air Jordan lineage,
Dialogue: 0,0:00:20.86,0:00:22.88,Default,,0000,0000,0000,,and perhaps saved Nike.
Dialogue: 0,0:00:22.91,0:00:25.82,Default,,0000,0000,0000,,The Air Jordan 3 Black Cement\Ndid for sneakers
Dialogue: 0,0:00:25.84,0:00:27.64,Default,,0000,0000,0000,,what the iPhone did for phones.
Dialogue: 0,0:00:28.11,0:00:30.13,Default,,0000,0000,0000,,It's been re-released four times.
Dialogue: 0,0:00:30.64,0:00:32.78,Default,,0000,0000,0000,,Every celebrity's been seen wearing it.
Dialogue: 0,0:00:32.80,0:00:35.46,Default,,0000,0000,0000,,There's a site about what to wear\Nwith the Black Cement.
Dialogue: 0,0:00:35.48,0:00:38.12,Default,,0000,0000,0000,,It's been right under\Nyour nose for decades
Dialogue: 0,0:00:38.15,0:00:40.13,Default,,0000,0000,0000,,and you never looked down.
Dialogue: 0,0:00:40.58,0:00:42.34,Default,,0000,0000,0000,,And right about now,
Dialogue: 0,0:00:42.37,0:00:45.77,Default,,0000,0000,0000,,most of you are probably\Nthinking, "Sneakers?"
Dialogue: 0,0:00:46.10,0:00:48.05,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:48.08,0:00:49.24,Default,,0000,0000,0000,,Yes.
Dialogue: 0,0:00:49.26,0:00:50.83,Default,,0000,0000,0000,,Yes, sneakers.
Dialogue: 0,0:00:51.80,0:00:55.39,Default,,0000,0000,0000,,Some extraordinary things about sneakers
Dialogue: 0,0:00:55.41,0:00:57.00,Default,,0000,0000,0000,,and data
Dialogue: 0,0:00:57.02,0:00:58.50,Default,,0000,0000,0000,,and Nike
Dialogue: 0,0:00:58.52,0:01:02.75,Default,,0000,0000,0000,,and how they're all related, possibly,\Nto the future of all online commerce.
Dialogue: 0,0:01:03.26,0:01:04.42,Default,,0000,0000,0000,,In 2011,
Dialogue: 0,0:01:04.44,0:01:07.42,Default,,0000,0000,0000,,the last time the Jordan 3\NBlack Cement was released,
Dialogue: 0,0:01:07.45,0:01:09.78,Default,,0000,0000,0000,,at a retail of 160 dollars,
Dialogue: 0,0:01:09.80,0:01:12.26,Default,,0000,0000,0000,,it sold out globally in minutes.
Dialogue: 0,0:01:12.29,0:01:15.28,Default,,0000,0000,0000,,And that's because people were camped\Noutside of sneaker stores
Dialogue: 0,0:01:15.30,0:01:17.07,Default,,0000,0000,0000,,for days before it went on sale.
Dialogue: 0,0:01:17.40,0:01:18.84,Default,,0000,0000,0000,,And just minutes after that,
Dialogue: 0,0:01:18.87,0:01:22.40,Default,,0000,0000,0000,,thousands of those pairs were on eBay\Nfor two and three times retail.
Dialogue: 0,0:01:22.92,0:01:27.30,Default,,0000,0000,0000,,In fact, there's over 1,000 pairs on eBay\Nright now, four years later.
Dialogue: 0,0:01:28.11,0:01:29.70,Default,,0000,0000,0000,,But here's the thing:
Dialogue: 0,0:01:29.73,0:01:33.19,Default,,0000,0000,0000,,this happens every single Saturday.
Dialogue: 0,0:01:33.56,0:01:36.11,Default,,0000,0000,0000,,Every week there's another\Nrelease or two or three,
Dialogue: 0,0:01:36.13,0:01:38.38,Default,,0000,0000,0000,,and every shoe has a story
Dialogue: 0,0:01:38.41,0:01:41.34,Default,,0000,0000,0000,,as rich and compelling\Nas the Jordan 3 Black Cement.
Dialogue: 0,0:01:42.07,0:01:46.22,Default,,0000,0000,0000,,This is Nike building\Nthe marketplace for sneakerheads --
Dialogue: 0,0:01:46.25,0:01:50.02,Default,,0000,0000,0000,,people who collect sneakers --
Dialogue: 0,0:01:50.05,0:01:51.30,Default,,0000,0000,0000,,and my daughter.
Dialogue: 0,0:01:51.32,0:01:53.25,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:53.27,0:01:55.34,Default,,0000,0000,0000,,That's an "I love Dad" T-shirt.
Dialogue: 0,0:01:56.24,0:01:59.41,Default,,0000,0000,0000,,For the brands, sneakerheads\Nare a very important demographic.
Dialogue: 0,0:01:59.44,0:02:03.36,Default,,0000,0000,0000,,These are the tastemakers;\Nthese are the Apple fanboys.
Dialogue: 0,0:02:03.38,0:02:04.92,Default,,0000,0000,0000,,Because who else is going to buy
Dialogue: 0,0:02:04.95,0:02:08.16,Default,,0000,0000,0000,,a pair of $8,000\NBack to the Future sneakers?
Dialogue: 0,0:02:08.60,0:02:10.44,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:10.46,0:02:12.54,Default,,0000,0000,0000,,Yeah, 8,000 dollars.
Dialogue: 0,0:02:13.36,0:02:15.72,Default,,0000,0000,0000,,And while that's obviously the anomaly,
Dialogue: 0,0:02:15.74,0:02:18.92,Default,,0000,0000,0000,,the resell sneaker market\Nis definitely not.
Dialogue: 0,0:02:18.94,0:02:20.76,Default,,0000,0000,0000,,Thirty years in the making,
Dialogue: 0,0:02:20.79,0:02:22.72,Default,,0000,0000,0000,,what started as an underground culture
Dialogue: 0,0:02:22.75,0:02:25.73,Default,,0000,0000,0000,,of a few people who like sneakers\Njust a bit too much --
Dialogue: 0,0:02:25.75,0:02:27.15,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:28.52,0:02:30.73,Default,,0000,0000,0000,,Now we have sneaker addictions.
Dialogue: 0,0:02:30.76,0:02:32.69,Default,,0000,0000,0000,,In a market where in the past 12 months,
Dialogue: 0,0:02:32.71,0:02:34.96,Default,,0000,0000,0000,,there have been over\Nnine million pairs of shoes
Dialogue: 0,0:02:34.99,0:02:37.38,Default,,0000,0000,0000,,resold in the United States alone,
Dialogue: 0,0:02:37.40,0:02:41.64,Default,,0000,0000,0000,,at a value of 1.2 billion dollars.
Dialogue: 0,0:02:41.67,0:02:43.71,Default,,0000,0000,0000,,And that's a conservative estimate --
Dialogue: 0,0:02:43.73,0:02:46.94,Default,,0000,0000,0000,,I should know, I am a sneakerhead.
Dialogue: 0,0:02:46.96,0:02:48.47,Default,,0000,0000,0000,,This is my collection.
Dialogue: 0,0:02:48.98,0:02:52.88,Default,,0000,0000,0000,,In the pantheon of great collections,\Nmine doesn't even register.
Dialogue: 0,0:02:53.39,0:02:56.44,Default,,0000,0000,0000,,I have about 250 pairs,\Nbut trust me, I am small-time.
Dialogue: 0,0:02:56.46,0:02:58.42,Default,,0000,0000,0000,,People have thousands.
Dialogue: 0,0:02:58.76,0:03:01.44,Default,,0000,0000,0000,,I'm a very typical\N37-year-old sneakerhead.
Dialogue: 0,0:03:02.14,0:03:04.77,Default,,0000,0000,0000,,I grew up playing basketball\Nwhen Michael Jordan played,
Dialogue: 0,0:03:04.80,0:03:06.14,Default,,0000,0000,0000,,I always wanted Air Jordans,
Dialogue: 0,0:03:06.16,0:03:08.13,Default,,0000,0000,0000,,my mother would never buy me Air Jordans,
Dialogue: 0,0:03:08.15,0:03:10.55,Default,,0000,0000,0000,,as soon as I got some money\NI bought Air Jordans --
Dialogue: 0,0:03:10.57,0:03:12.64,Default,,0000,0000,0000,,literally, we all have\Nthe exact same story.
Dialogue: 0,0:03:12.67,0:03:14.36,Default,,0000,0000,0000,,But here's where mine diverged.
Dialogue: 0,0:03:15.17,0:03:19.26,Default,,0000,0000,0000,,After starting three companies,\NI took a job as a strategy consultant,
Dialogue: 0,0:03:19.28,0:03:23.20,Default,,0000,0000,0000,,when I very quickly realized that\NI didn't know the first thing about data.
Dialogue: 0,0:03:23.95,0:03:26.74,Default,,0000,0000,0000,,But I learned, because I had to,
Dialogue: 0,0:03:26.76,0:03:28.06,Default,,0000,0000,0000,,and I liked it.
Dialogue: 0,0:03:28.08,0:03:31.49,Default,,0000,0000,0000,,So I thought, I wonder if I could\Nget ahold of some sneaker data,
Dialogue: 0,0:03:31.52,0:03:33.53,Default,,0000,0000,0000,,just to play with for my own amusement.
Dialogue: 0,0:03:33.95,0:03:35.82,Default,,0000,0000,0000,,The goal was to develop a price guide,
Dialogue: 0,0:03:35.85,0:03:38.04,Default,,0000,0000,0000,,a real data-driven view of the market.
Dialogue: 0,0:03:38.37,0:03:42.70,Default,,0000,0000,0000,,And four years later, we're analyzing\Nover 25 million transactions,
Dialogue: 0,0:03:42.73,0:03:45.64,Default,,0000,0000,0000,,providing real-time analytics\Non thousands of sneakers.
Dialogue: 0,0:03:46.33,0:03:49.88,Default,,0000,0000,0000,,Now sneakerheads check prices\Nwhile camping out for releases.
Dialogue: 0,0:03:50.54,0:03:53.69,Default,,0000,0000,0000,,Others have used the data\Nto validate insurance claims.
Dialogue: 0,0:03:54.78,0:03:56.76,Default,,0000,0000,0000,,And the top investment banks in the world
Dialogue: 0,0:03:56.79,0:04:01.39,Default,,0000,0000,0000,,now use resell data to analyze\Nthe retail footwear industry.
Dialogue: 0,0:04:01.42,0:04:03.01,Default,,0000,0000,0000,,And here's the best part:
Dialogue: 0,0:04:03.03,0:04:06.56,Default,,0000,0000,0000,,sneakerheads have sneaker portfolios.
Dialogue: 0,0:04:06.58,0:04:08.08,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:08.62,0:04:11.59,Default,,0000,0000,0000,,Sneakerheads can track the value\Nof their collection over time,
Dialogue: 0,0:04:11.61,0:04:12.76,Default,,0000,0000,0000,,compare it to others,
Dialogue: 0,0:04:12.79,0:04:15.02,Default,,0000,0000,0000,,and have access to the same\Nanalytics you might
Dialogue: 0,0:04:15.04,0:04:16.96,Default,,0000,0000,0000,,for your online brokerage account.
Dialogue: 0,0:04:16.99,0:04:21.89,Default,,0000,0000,0000,,So sneakerhead Dan builds his collection\Nand identifies which 352 are his.
Dialogue: 0,0:04:21.92,0:04:24.80,Default,,0000,0000,0000,,He can see it's worth 103,000 dollars --
Dialogue: 0,0:04:24.83,0:04:26.83,Default,,0000,0000,0000,,frankly, a modest collection.
Dialogue: 0,0:04:26.85,0:04:30.46,Default,,0000,0000,0000,,At the asset level,\Nhe can see gain-loss by shoe.
Dialogue: 0,0:04:30.49,0:04:33.00,Default,,0000,0000,0000,,Here he's made over\N600 dollars on one pair.
Dialogue: 0,0:04:34.18,0:04:35.51,Default,,0000,0000,0000,,I have one of those.
Dialogue: 0,0:04:35.54,0:04:37.12,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:38.66,0:04:42.10,Default,,0000,0000,0000,,So an unregulated\N1.2 billion dollar industry
Dialogue: 0,0:04:42.13,0:04:44.70,Default,,0000,0000,0000,,that thrives as much on the street\Nas it does online,
Dialogue: 0,0:04:44.72,0:04:48.46,Default,,0000,0000,0000,,and has spawned fundamental\Nfinancial services for sneakers?
Dialogue: 0,0:04:49.11,0:04:52.25,Default,,0000,0000,0000,,At some point I asked myself\Nwhat's really going on in the market,
Dialogue: 0,0:04:52.27,0:04:54.59,Default,,0000,0000,0000,,and two comparisons started to emerge.
Dialogue: 0,0:04:54.61,0:04:58.36,Default,,0000,0000,0000,,Are sneakers more like stocks or drugs?
Dialogue: 0,0:04:58.39,0:04:59.59,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:59.61,0:05:01.48,Default,,0000,0000,0000,,In fact, one guy emailed to say
Dialogue: 0,0:05:01.50,0:05:05.77,Default,,0000,0000,0000,,he thought his 15-year-old son\Nwas selling drugs
Dialogue: 0,0:05:05.79,0:05:08.32,Default,,0000,0000,0000,,and later found out\Nhe was selling sneakers.
Dialogue: 0,0:05:08.85,0:05:10.01,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:05:10.76,0:05:13.29,Default,,0000,0000,0000,,And now they use the data\Nto do it together.
Dialogue: 0,0:05:13.71,0:05:16.41,Default,,0000,0000,0000,,And that's because sneakers\Nare an investment opportunity
Dialogue: 0,0:05:16.43,0:05:17.59,Default,,0000,0000,0000,,where none other exists.
Dialogue: 0,0:05:17.62,0:05:20.65,Default,,0000,0000,0000,,And I don't just mean the kid\Nselling sneakers instead of drugs.
Dialogue: 0,0:05:20.68,0:05:22.37,Default,,0000,0000,0000,,How about all kids?
Dialogue: 0,0:05:22.39,0:05:25.14,Default,,0000,0000,0000,,You have to be 18\Nto play the stock market.
Dialogue: 0,0:05:25.97,0:05:28.31,Default,,0000,0000,0000,,I sold chewing gum in sixth grade,
Dialogue: 0,0:05:28.33,0:05:29.91,Default,,0000,0000,0000,,Blow Pops in ninth grade
Dialogue: 0,0:05:29.93,0:05:32.35,Default,,0000,0000,0000,,and collected baseball cards\Nthrough high school.
Dialogue: 0,0:05:32.38,0:05:34.18,Default,,0000,0000,0000,,The cards are long dead,
Dialogue: 0,0:05:34.20,0:05:36.57,Default,,0000,0000,0000,,and the candy market's\Nusually quite local.
Dialogue: 0,0:05:37.12,0:05:42.85,Default,,0000,0000,0000,,For a lot of people, sneakers are a legal\Nand accessible investment opportunity --
Dialogue: 0,0:05:42.87,0:05:46.64,Default,,0000,0000,0000,,a democratized stock market,
Dialogue: 0,0:05:46.66,0:05:48.74,Default,,0000,0000,0000,,but also unregulated.
Dialogue: 0,0:05:48.76,0:05:51.54,Default,,0000,0000,0000,,Which is why the story\Nyou're probably most familiar with
Dialogue: 0,0:05:51.56,0:05:53.98,Default,,0000,0000,0000,,is people killing each other for sneakers.
Dialogue: 0,0:05:54.61,0:05:58.38,Default,,0000,0000,0000,,And while that definitely\Nhappens and is tragic,
Dialogue: 0,0:05:58.40,0:06:02.25,Default,,0000,0000,0000,,it's not nearly the epidemic\Nsome media would have you believe.
Dialogue: 0,0:06:02.27,0:06:06.46,Default,,0000,0000,0000,,In fact, it's a very small piece\Nof a much bigger and better story.
Dialogue: 0,0:06:06.48,0:06:08.18,Default,,0000,0000,0000,,So sneakers have clear similarities
Dialogue: 0,0:06:08.20,0:06:11.31,Default,,0000,0000,0000,,to both the stock exchange\Nand the illegal drug trade,
Dialogue: 0,0:06:11.33,0:06:15.73,Default,,0000,0000,0000,,but perhaps the most fundamental\Nis the existence of a central actor.
Dialogue: 0,0:06:15.75,0:06:17.74,Default,,0000,0000,0000,,Someone is making the rules.
Dialogue: 0,0:06:18.99,0:06:22.98,Default,,0000,0000,0000,,In the case of sneakers,\Nthat someone is Nike.
Dialogue: 0,0:06:23.91,0:06:26.16,Default,,0000,0000,0000,,Let me walk you through some numbers.
Dialogue: 0,0:06:26.19,0:06:29.42,Default,,0000,0000,0000,,The resell market,\Nwe know, is $1.2 billion.
Dialogue: 0,0:06:29.45,0:06:31.74,Default,,0000,0000,0000,,Nike, including Jordan brand,
Dialogue: 0,0:06:31.77,0:06:36.28,Default,,0000,0000,0000,,accounts for 96 percent of all shoes\Nsold on the secondary market.
Dialogue: 0,0:06:36.31,0:06:37.90,Default,,0000,0000,0000,,Just complete domination.
Dialogue: 0,0:06:37.92,0:06:40.51,Default,,0000,0000,0000,,Sneakerheads love Jordans.
Dialogue: 0,0:06:40.54,0:06:43.55,Default,,0000,0000,0000,,And profit on the secondary market\Nis about a third.
Dialogue: 0,0:06:43.57,0:06:48.64,Default,,0000,0000,0000,,That means that sneakerheads\Nmade 380 million dollars
Dialogue: 0,0:06:48.66,0:06:50.55,Default,,0000,0000,0000,,selling Nikes last year.
Dialogue: 0,0:06:51.03,0:06:53.05,Default,,0000,0000,0000,,Let's jump to retail for a second.
Dialogue: 0,0:06:53.07,0:06:54.49,Default,,0000,0000,0000,,Skechers, earlier this year,
Dialogue: 0,0:06:54.52,0:06:57.30,Default,,0000,0000,0000,,became the number two\Nfootwear brand in the country,
Dialogue: 0,0:06:57.33,0:07:00.16,Default,,0000,0000,0000,,surpassing Adidas --\Nthis was a big deal.
Dialogue: 0,0:07:00.19,0:07:02.96,Default,,0000,0000,0000,,And in the 12 months ending in June,
Dialogue: 0,0:07:02.98,0:07:07.05,Default,,0000,0000,0000,,Skechers's net income\Nwas 209 million dollars.
Dialogue: 0,0:07:07.85,0:07:11.19,Default,,0000,0000,0000,,That means that Nike's customers
Dialogue: 0,0:07:11.21,0:07:14.75,Default,,0000,0000,0000,,make almost twice as much profit\Nas their closest competitor.
Dialogue: 0,0:07:15.76,0:07:17.56,Default,,0000,0000,0000,,That --
Dialogue: 0,0:07:17.58,0:07:21.00,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:07:21.03,0:07:22.60,Default,,0000,0000,0000,,How is that even possible?
Dialogue: 0,0:07:24.25,0:07:26.83,Default,,0000,0000,0000,,The sneaker market\Nis just supply and demand,
Dialogue: 0,0:07:26.85,0:07:31.58,Default,,0000,0000,0000,,but Nike's gotten very good at using\Nsupply -- limited sneakers --
Dialogue: 0,0:07:31.60,0:07:35.41,Default,,0000,0000,0000,,and the distribution of those sneakers\Nto their own benefit.
Dialogue: 0,0:07:35.44,0:07:37.45,Default,,0000,0000,0000,,So it's really just supply.
Dialogue: 0,0:07:37.47,0:07:41.24,Default,,0000,0000,0000,,Sneakerheads joke that as long\Nas it's limited and Nike, they'll buy it.
Dialogue: 0,0:07:41.26,0:07:45.07,Default,,0000,0000,0000,,Shoes that sell for 8,000 dollars\Ndo so because they're very rare.
Dialogue: 0,0:07:45.10,0:07:47.86,Default,,0000,0000,0000,,It's no different than any other\Ncollectible market,
Dialogue: 0,0:07:47.88,0:07:50.96,Default,,0000,0000,0000,,only this isn't a market at all.
Dialogue: 0,0:07:51.51,0:07:53.95,Default,,0000,0000,0000,,It's a false construct created by Nike --
Dialogue: 0,0:07:53.98,0:07:58.26,Default,,0000,0000,0000,,ingeniously created by Nike, in the most\Npositive sense -- to sell more shoes.
Dialogue: 0,0:07:58.61,0:07:59.76,Default,,0000,0000,0000,,And in the process,
Dialogue: 0,0:07:59.79,0:08:03.16,Default,,0000,0000,0000,,it provided tens of thousands of people\Nwith life-long passions,
Dialogue: 0,0:08:03.18,0:08:04.66,Default,,0000,0000,0000,,myself included.
Dialogue: 0,0:08:05.49,0:08:08.70,Default,,0000,0000,0000,,If Nike wanted to kill the resell market,\Nthey could do so tomorrow,
Dialogue: 0,0:08:08.73,0:08:10.76,Default,,0000,0000,0000,,all they have to do is release more shoes.
Dialogue: 0,0:08:10.78,0:08:14.30,Default,,0000,0000,0000,,But we certainly don't want them to,\Nnor is it in their best interest.
Dialogue: 0,0:08:15.34,0:08:19.58,Default,,0000,0000,0000,,That's because unlike Apple, who will sell\Nan iPhone to anyone who wants one,
Dialogue: 0,0:08:19.61,0:08:23.42,Default,,0000,0000,0000,,Nike doesn't make their money\Nby just selling $200 sneakers.
Dialogue: 0,0:08:23.45,0:08:26.70,Default,,0000,0000,0000,,They sell millions of shoes to millions\Nof people for 60 dollars.
Dialogue: 0,0:08:27.15,0:08:29.68,Default,,0000,0000,0000,,And sneakerheads are the ones\Nwho drive the marketing
Dialogue: 0,0:08:29.71,0:08:32.24,Default,,0000,0000,0000,,and the hype and the PR\Nand the brand cachet,
Dialogue: 0,0:08:32.26,0:08:35.80,Default,,0000,0000,0000,,and enable Nike to sell millions\Nof $60 sneakers.
Dialogue: 0,0:08:37.50,0:08:38.88,Default,,0000,0000,0000,,It's marketing.
Dialogue: 0,0:08:38.91,0:08:42.02,Default,,0000,0000,0000,,It's marketing the likes of which\Nhas never been seen before --
Dialogue: 0,0:08:42.04,0:08:43.46,Default,,0000,0000,0000,,this isn't in any textbook.
Dialogue: 0,0:08:43.49,0:08:47.03,Default,,0000,0000,0000,,For 15 years Nike has propped up\Nan artificial commodities market,
Dialogue: 0,0:08:47.05,0:08:51.51,Default,,0000,0000,0000,,with a Facebook-level hyped IPO\Nevery single weekend.
Dialogue: 0,0:08:51.54,0:08:54.21,Default,,0000,0000,0000,,Drive by any Footlocker at 8am\Non a Saturday morning,
Dialogue: 0,0:08:54.23,0:08:57.18,Default,,0000,0000,0000,,and there will be a line down the street\Nand around the block,
Dialogue: 0,0:08:57.21,0:09:00.07,Default,,0000,0000,0000,,and sometimes those kids\Nhave been waiting there all week.
Dialogue: 0,0:09:00.44,0:09:04.21,Default,,0000,0000,0000,,You know those crazy iPhone lines\Nyou see on the news every other year?
Dialogue: 0,0:09:04.23,0:09:08.52,Default,,0000,0000,0000,,Nike lines happen 104 times more often.
Dialogue: 0,0:09:09.08,0:09:10.60,Default,,0000,0000,0000,,So Nike sets the rules.
Dialogue: 0,0:09:10.63,0:09:13.40,Default,,0000,0000,0000,,And they do so by controlling\Nsupply and distribution.
Dialogue: 0,0:09:14.01,0:09:17.91,Default,,0000,0000,0000,,But once a pair leaves\Nthe retail channel, it's the Wild West.
Dialogue: 0,0:09:18.50,0:09:24.00,Default,,0000,0000,0000,,There are very few -- if any --\Nlegal, unregulated markets of this size.
Dialogue: 0,0:09:24.48,0:09:27.80,Default,,0000,0000,0000,,So Nike is definitely\Nnot the stock exchange.
Dialogue: 0,0:09:27.83,0:09:30.61,Default,,0000,0000,0000,,In fact, there is no central exchange.
Dialogue: 0,0:09:30.63,0:09:35.37,Default,,0000,0000,0000,,By last count, there were 48 different\Nonline markets that I know of.
Dialogue: 0,0:09:36.61,0:09:39.48,Default,,0000,0000,0000,,Some are eBay clones,\Nsome are mobile markets,
Dialogue: 0,0:09:39.50,0:09:42.52,Default,,0000,0000,0000,,and then you have consignment shops\Nand brick-and-mortar stores,
Dialogue: 0,0:09:42.55,0:09:44.61,Default,,0000,0000,0000,,and sneaker conventions,\Nand reseller sites,
Dialogue: 0,0:09:44.64,0:09:47.04,Default,,0000,0000,0000,,and Facebook and Instagram and Twitter --
Dialogue: 0,0:09:47.06,0:09:50.60,Default,,0000,0000,0000,,literally, anywhere sneakerheads\Ncome into contact with each other,
Dialogue: 0,0:09:50.62,0:09:52.61,Default,,0000,0000,0000,,shoes will be bought and sold.
Dialogue: 0,0:09:53.50,0:09:58.52,Default,,0000,0000,0000,,But that means no efficiencies,\Nno transparency,
Dialogue: 0,0:09:58.54,0:10:00.76,Default,,0000,0000,0000,,sometimes not even authenticity.
Dialogue: 0,0:10:01.58,0:10:04.38,Default,,0000,0000,0000,,Can you imagine if that's\Nhow stocks were bought?
Dialogue: 0,0:10:05.12,0:10:07.41,Default,,0000,0000,0000,,What if the way to buy\Na share of Apple stock
Dialogue: 0,0:10:07.43,0:10:10.29,Default,,0000,0000,0000,,was to search over 100 places\Nonline and off,
Dialogue: 0,0:10:10.31,0:10:12.54,Default,,0000,0000,0000,,including every time\Nyou walk down the street
Dialogue: 0,0:10:12.56,0:10:15.20,Default,,0000,0000,0000,,just hoping to pass someone\Nwearing some Apple stock?
Dialogue: 0,0:10:15.22,0:10:17.09,Default,,0000,0000,0000,,Never knowing who had the best price,
Dialogue: 0,0:10:17.11,0:10:19.68,Default,,0000,0000,0000,,or even if the stock\Nyou were looking at was real.
Dialogue: 0,0:10:19.70,0:10:21.52,Default,,0000,0000,0000,,That would surely make you say:
Dialogue: 0,0:10:21.54,0:10:23.60,Default,,0000,0000,0000,,[WTF?]
Dialogue: 0,0:10:23.62,0:10:25.91,Default,,0000,0000,0000,,Of course that's not how we buy stock.
Dialogue: 0,0:10:26.90,0:10:29.92,Default,,0000,0000,0000,,But what if that's not how\Nwe need to buy sneakers either?
Dialogue: 0,0:10:30.92,0:10:32.30,Default,,0000,0000,0000,,What if the inverse is true,
Dialogue: 0,0:10:32.33,0:10:33.92,Default,,0000,0000,0000,,and what if we could buy sneakers
Dialogue: 0,0:10:33.94,0:10:35.73,Default,,0000,0000,0000,,exactly the same way as we buy stock?
Dialogue: 0,0:10:35.76,0:10:38.64,Default,,0000,0000,0000,,And what if it wasn't just sneakers,\Nbut any similar product,
Dialogue: 0,0:10:38.67,0:10:40.77,Default,,0000,0000,0000,,like watches and handbags\Nand women's shoes,
Dialogue: 0,0:10:40.80,0:10:44.14,Default,,0000,0000,0000,,and any collectible, any seasonal item\Nand any markdown item?
Dialogue: 0,0:10:44.17,0:10:47.41,Default,,0000,0000,0000,,What if there was\Na stock market for commerce?
Dialogue: 0,0:10:48.05,0:10:50.87,Default,,0000,0000,0000,,A stock market of things.
Dialogue: 0,0:10:52.17,0:10:56.49,Default,,0000,0000,0000,,And not only could you buy in a much more\Neducated and efficient manner,
Dialogue: 0,0:10:56.51,0:10:59.75,Default,,0000,0000,0000,,but you could engage in all\Nthe sophisticated financial transactions
Dialogue: 0,0:10:59.78,0:11:01.36,Default,,0000,0000,0000,,you can with the stock market.
Dialogue: 0,0:11:01.38,0:11:02.99,Default,,0000,0000,0000,,Shorts and options and futures
Dialogue: 0,0:11:03.01,0:11:06.12,Default,,0000,0000,0000,,and well, maybe you see\Nwhere this is going.
Dialogue: 0,0:11:06.15,0:11:10.07,Default,,0000,0000,0000,,Maybe you want to invest\Nin a stock market of things.
Dialogue: 0,0:11:10.100,0:11:17.27,Default,,0000,0000,0000,,Because if you had invested in a pair\Nof Air Jordan 3 Black Cement in 2011,
Dialogue: 0,0:11:17.29,0:11:19.69,Default,,0000,0000,0000,,you could either be wearing them onstage,
Dialogue: 0,0:11:19.71,0:11:21.63,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:11:21.66,0:11:24.95,Default,,0000,0000,0000,,or have earned 162 percent\Non your money --
Dialogue: 0,0:11:25.67,0:11:29.02,Default,,0000,0000,0000,,double the S&P and 20 percent\Nmore than Apple.
Dialogue: 0,0:11:29.04,0:11:30.76,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:11:31.20,0:11:33.66,Default,,0000,0000,0000,,And that's why\Nwe're talking about sneakers.
Dialogue: 0,0:11:34.23,0:11:35.38,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:11:35.40,0:11:38.32,Default,,0000,0000,0000,,(Applause)