Supreme is a skateboarding/designer brand based out of New York City. It was established in April 1994 and is a go to brand for many re sellers as well as people who like to flex. Supreme brand caters to many enthusiasts of skateboarding as well as along with Hip Hop and Rock cultures, most of all to youth. Supreme creates clothing, accessories, skateboards as well as many other valuables. The retail price for many of these is very affordable but usually after re sellers put them up, prices inflate to about 6-25 times as much.
Supreme has been a very fast growing company and has a different way of producing and selling it’s items. Supreme is the incredibly-well kept secret of cool kids. What started as a skate brand, has now become the leader of street wear, selling everything from hats and shirts to crowbars and lighters. Year after year, Supreme is voted as one of the best street wear brands year by publications like GQ and Complex.
Unlike the Nike’s and Ralph Lauren’s of the world, Supreme has never gone commercial and has never been sold in a big box retailer. Since they’ve avoided becoming a sell out, their products always sell out.
Their business model is defined by simple economics, in which demand outweighs supply — significantly. As demand for Supreme increases, the supply becomes more valuable. However, the supply never increases to meet the demand. For a reason.
While other brands re-stock products if they sell well, Supreme never re-stocks anything. That means if you missed out on a new release, you’re not going to be able to walk into Supreme next month and expect it to be sitting on the shelf. This is the true definition of limited edition.
Limited edition only matters when demand outweighs supply. The demand for Supreme is so high and the supply is so low that a second market has been created, naturally. While Supreme could increase their supply, they have chosen not to, which has fueled the second-market of re-sellers — people who buy products just to re-sell them for a profit.
Why you should buy Supreme?
Well the truth is, you will probably never buy any merchandise from Supreme or might I say, won’t even get close to.
WARNING- Following Video May Contain Explicit Language
Under Supreme’s current system, buyers can be ‘cart-jacked’; it looks like they’re about to checkout, but someone else has actually purchased the item while they were busy filling in their credit card details.
Supreme is clearly aware that it’s an issue, but apart from some customers being pissed off, it’s not really going to hurt the brand and therefore there’s very little incentive for it to put in measures to prevent it. For a niche brand built off hype, one that made headlines in mainstream media, this is all fuel for the fire.
I have owned Supreme items and I can speak on this myself. I have never wasted my time waiting in line for anything, I can be patient enough to find it later on online or just get someone to re-sell it to me. Anytime I’ve bought Supreme, I have bought it from a re seller and must I say, they make lots as I later ended up selling my items too. I had bought a crew neck which was released for $80.95 but I had bought for $366.00. This shows how much of a inflation is put o to items like these. Supreme has one of its big rival, BAPE, which have a very similar mindset related to Supreme but end up releasing many more items than Supreme.
In the end, they don’t care about what others think of their brand or how they work it. It all comes down to the hype and attention, but most of all, the money. The company rakes in around $70 million with its release prices but its like a drug cartel, lots of money is made from the re-sell game and many, many more millions come in through it. All in all though, that is what this culture is about.