[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.57,0:00:06.43,Default,,0000,0000,0000,,This is the Air Jordan 3 Black Cement.
Dialogue: 0,0:00:07.36,0:00:10.72,Default,,0000,0000,0000,,This might be the most\Nimportant sneaker in history.
Dialogue: 0,0:00:11.32,0:00:13.13,Default,,0000,0000,0000,,First released in 1988,
Dialogue: 0,0:00:13.14,0:00:16.46,Default,,0000,0000,0000,,this is the shoe that started\NNike marketing as we know it.
Dialogue: 0,0:00:17.27,0:00:20.92,Default,,0000,0000,0000,,This is the shoe that propelled\Nthe entire Air Jordan lineage,
Dialogue: 0,0:00:20.92,0:00:22.89,Default,,0000,0000,0000,,and perhaps saved Nike.
Dialogue: 0,0:00:23.24,0:00:27.70,Default,,0000,0000,0000,,The Air Jordan 3 Black Cement did for\Nsneakers what the iPhone did for phones.
Dialogue: 0,0:00:28.28,0:00:30.30,Default,,0000,0000,0000,,It's been rereleased four times.
Dialogue: 0,0:00:30.62,0:00:32.76,Default,,0000,0000,0000,,Every celebrity's been seen wearing it.
Dialogue: 0,0:00:33.10,0:00:35.75,Default,,0000,0000,0000,,There's a site about what to wear\Nwith the Black Cement,
Dialogue: 0,0:00:35.75,0:00:38.38,Default,,0000,0000,0000,,it's been right under\Nyour nose for decades
Dialogue: 0,0:00:38.38,0:00:40.37,Default,,0000,0000,0000,,and you never looked down.
Dialogue: 0,0:00:40.88,0:00:42.67,Default,,0000,0000,0000,,And right about now,
Dialogue: 0,0:00:42.67,0:00:46.09,Default,,0000,0000,0000,,most of you are probably\Nthinking, sneakers?
Dialogue: 0,0:00:46.09,0:00:47.36,Default,,0000,0000,0000,,[WTF? SNEAKERS?]
Dialogue: 0,0:00:47.36,0:00:48.52,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:48.52,0:00:49.53,Default,,0000,0000,0000,,Yes.
Dialogue: 0,0:00:49.53,0:00:51.48,Default,,0000,0000,0000,,Yes, sneakers.
Dialogue: 0,0:00:52.11,0:00:55.71,Default,,0000,0000,0000,,Some extraordinary things\Nabout sneakers,
Dialogue: 0,0:00:55.71,0:00:57.32,Default,,0000,0000,0000,,and data,
Dialogue: 0,0:00:57.32,0:00:58.82,Default,,0000,0000,0000,,and Nike,
Dialogue: 0,0:00:58.82,0:01:03.05,Default,,0000,0000,0000,,and how they're all related, possibly,\Nto the future of all online commerce.
Dialogue: 0,0:01:03.47,0:01:07.87,Default,,0000,0000,0000,,In 2011, the last time\Nthe Jordan 3 Black Cement was released,
Dialogue: 0,0:01:07.87,0:01:10.10,Default,,0000,0000,0000,,at a retail of $160 dollars,
Dialogue: 0,0:01:10.10,0:01:12.65,Default,,0000,0000,0000,,it sold out globally in minutes.
Dialogue: 0,0:01:12.65,0:01:15.31,Default,,0000,0000,0000,,And that's because people\Nwere camped outside of sneaker stores
Dialogue: 0,0:01:15.31,0:01:17.24,Default,,0000,0000,0000,,for days before it went on sale.
Dialogue: 0,0:01:17.70,0:01:19.17,Default,,0000,0000,0000,,And just minutes after that,
Dialogue: 0,0:01:19.17,0:01:22.70,Default,,0000,0000,0000,,thousands of those pairs were on eBay\Nfor two and three times retail.
Dialogue: 0,0:01:23.09,0:01:27.60,Default,,0000,0000,0000,,In fact, there's over 1,000 pairs on eBay\Nright now, four years later.
Dialogue: 0,0:01:28.57,0:01:29.95,Default,,0000,0000,0000,,But here's the thing,
Dialogue: 0,0:01:29.95,0:01:33.37,Default,,0000,0000,0000,,this happens every single Saturday.
Dialogue: 0,0:01:33.86,0:01:36.34,Default,,0000,0000,0000,,Every week there's another\Nrelease --or two or three,
Dialogue: 0,0:01:36.34,0:01:38.71,Default,,0000,0000,0000,,and every shoe has a story
Dialogue: 0,0:01:38.71,0:01:41.64,Default,,0000,0000,0000,,as rich and compelling\Nas the Jordan 3 Black Cement.
Dialogue: 0,0:01:42.17,0:01:46.38,Default,,0000,0000,0000,,This is Nike building\Nthe marketplace for Sneakerheads,
Dialogue: 0,0:01:46.38,0:01:50.35,Default,,0000,0000,0000,,people who collect sneakers,
Dialogue: 0,0:01:50.35,0:01:51.62,Default,,0000,0000,0000,,and my daughter.
Dialogue: 0,0:01:51.62,0:01:53.57,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:53.57,0:01:56.22,Default,,0000,0000,0000,,That's an "I love Dad" tee shirt.
Dialogue: 0,0:01:56.54,0:01:59.74,Default,,0000,0000,0000,,For the brands, Sneakerheads are\Na very important demographic.
Dialogue: 0,0:01:59.74,0:02:01.38,Default,,0000,0000,0000,,These are the tastemakers,
Dialogue: 0,0:02:01.38,0:02:03.68,Default,,0000,0000,0000,,these are the Apple fanboys --
Dialogue: 0,0:02:03.68,0:02:08.27,Default,,0000,0000,0000,,because who else is going to buy a pair of\N8,000 dollar Back to the Future sneakers?
Dialogue: 0,0:02:08.90,0:02:10.76,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:10.76,0:02:12.84,Default,,0000,0000,0000,,Yeah, 8,000 dollars.
Dialogue: 0,0:02:13.66,0:02:16.04,Default,,0000,0000,0000,,And while that's obviously the anomaly,
Dialogue: 0,0:02:16.04,0:02:18.80,Default,,0000,0000,0000,,the resell sneaker market\Nis definitely not.
Dialogue: 0,0:02:19.03,0:02:20.96,Default,,0000,0000,0000,,30 years in the making,
Dialogue: 0,0:02:20.96,0:02:23.05,Default,,0000,0000,0000,,what started as an underground culture
Dialogue: 0,0:02:23.05,0:02:26.05,Default,,0000,0000,0000,,of a few people who like sneakers\Njust a bit too much,
Dialogue: 0,0:02:26.05,0:02:27.45,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:02:28.82,0:02:30.90,Default,,0000,0000,0000,,Now we have sneaker addictions.
Dialogue: 0,0:02:30.90,0:02:32.81,Default,,0000,0000,0000,,In a market where in the past 12 months,
Dialogue: 0,0:02:32.81,0:02:35.07,Default,,0000,0000,0000,,there have been over\Nnine million pairs of shoes
Dialogue: 0,0:02:35.07,0:02:37.70,Default,,0000,0000,0000,,resold in the United States alone,
Dialogue: 0,0:02:37.70,0:02:41.97,Default,,0000,0000,0000,,at a value of 1.2 billion dollars,
Dialogue: 0,0:02:41.97,0:02:44.02,Default,,0000,0000,0000,,and that's a conservative estimate --
Dialogue: 0,0:02:44.03,0:02:47.16,Default,,0000,0000,0000,,I should know, I am sneakerhead.
Dialogue: 0,0:02:47.16,0:02:48.77,Default,,0000,0000,0000,,This is my collection.
Dialogue: 0,0:02:49.28,0:02:52.81,Default,,0000,0000,0000,,In the pantheon on great collections,\Nmine doesn't even register.
Dialogue: 0,0:02:53.69,0:02:56.59,Default,,0000,0000,0000,,I have about 250 pairs,\Nbut trust me, I am small-time.
Dialogue: 0,0:02:56.59,0:02:58.54,Default,,0000,0000,0000,,People have thousands.
Dialogue: 0,0:02:59.12,0:03:01.81,Default,,0000,0000,0000,,I'm a very typical\N37-year-old sneakerhead.
Dialogue: 0,0:03:02.36,0:03:04.98,Default,,0000,0000,0000,,I grew up playing basketball\Nwhen Michael Jordan played,
Dialogue: 0,0:03:04.98,0:03:06.33,Default,,0000,0000,0000,,I always wanted Air Jordans,
Dialogue: 0,0:03:06.33,0:03:08.36,Default,,0000,0000,0000,,my mother would never buy me Air Jordans,
Dialogue: 0,0:03:08.36,0:03:10.74,Default,,0000,0000,0000,,as soon as I got some money\NI bought Air Jordans --
Dialogue: 0,0:03:10.74,0:03:13.03,Default,,0000,0000,0000,,literally we all have\Nthe exact same story.
Dialogue: 0,0:03:13.03,0:03:14.30,Default,,0000,0000,0000,,But here's where mine diverged.
Dialogue: 0,0:03:15.47,0:03:19.41,Default,,0000,0000,0000,,After starting three companies,\NI took a job as a strategy consultant,
Dialogue: 0,0:03:19.41,0:03:23.50,Default,,0000,0000,0000,,when I very quickly realized that\NI didn't know the first thing about data.
Dialogue: 0,0:03:24.25,0:03:26.97,Default,,0000,0000,0000,,But I learned -- because I had to,
Dialogue: 0,0:03:26.97,0:03:28.38,Default,,0000,0000,0000,,and I liked it.
Dialogue: 0,0:03:28.38,0:03:31.82,Default,,0000,0000,0000,,So I thought, I wonder if I could\Nget a hold of some sneaker data,
Dialogue: 0,0:03:31.82,0:03:34.05,Default,,0000,0000,0000,,just to play with for my own amusement.
Dialogue: 0,0:03:34.05,0:03:36.15,Default,,0000,0000,0000,,The goal was to develop a price guide,
Dialogue: 0,0:03:36.15,0:03:38.34,Default,,0000,0000,0000,,a real data-driven view of the market.
Dialogue: 0,0:03:38.67,0:03:40.06,Default,,0000,0000,0000,,And four years later,
Dialogue: 0,0:03:40.06,0:03:43.18,Default,,0000,0000,0000,,we're analyzing over\N25 million transactions,
Dialogue: 0,0:03:43.18,0:03:45.93,Default,,0000,0000,0000,,providing real-time analytics\Non thousands of sneakers.
Dialogue: 0,0:03:46.52,0:03:50.18,Default,,0000,0000,0000,,Now, sneakerheads check prices\Nwhile camping out for releases.
Dialogue: 0,0:03:50.65,0:03:54.13,Default,,0000,0000,0000,,Others have used the data\Nto validate insurance claims.
Dialogue: 0,0:03:54.91,0:03:56.98,Default,,0000,0000,0000,,And the top investment banks in the world
Dialogue: 0,0:03:56.98,0:04:01.58,Default,,0000,0000,0000,,now use resell data to analyze\Nthe retail footwear industry.
Dialogue: 0,0:04:01.72,0:04:03.33,Default,,0000,0000,0000,,And here's the best part.
Dialogue: 0,0:04:03.33,0:04:06.66,Default,,0000,0000,0000,,Sneakerheads have sneaker portfolios.
Dialogue: 0,0:04:06.88,0:04:08.38,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:08.81,0:04:11.76,Default,,0000,0000,0000,,Sneakerheads can track\Nthe value of their collection over time,
Dialogue: 0,0:04:11.76,0:04:12.98,Default,,0000,0000,0000,,compare it to others,
Dialogue: 0,0:04:12.98,0:04:15.18,Default,,0000,0000,0000,,and have access to the same\Nanalytics you might
Dialogue: 0,0:04:15.18,0:04:17.29,Default,,0000,0000,0000,,for your online brokerage account.
Dialogue: 0,0:04:17.29,0:04:22.08,Default,,0000,0000,0000,,So sneakerhead Dan builds his collection,\Nand identifies which 352 are his,
Dialogue: 0,0:04:22.08,0:04:25.05,Default,,0000,0000,0000,,he can see it's worth 103,000 dollars --
Dialogue: 0,0:04:25.05,0:04:26.92,Default,,0000,0000,0000,,frankly, a modest collection.
Dialogue: 0,0:04:27.15,0:04:30.64,Default,,0000,0000,0000,,At the asset level,\Nhe can see Gain/Loss by shoe,
Dialogue: 0,0:04:30.64,0:04:33.24,Default,,0000,0000,0000,,here he's made over\N600 dollars on one pair.
Dialogue: 0,0:04:34.47,0:04:35.73,Default,,0000,0000,0000,,I have one of those.
Dialogue: 0,0:04:35.96,0:04:37.54,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:38.96,0:04:42.37,Default,,0000,0000,0000,,So an unregulated\N1.2 billion dollar industry
Dialogue: 0,0:04:42.37,0:04:45.02,Default,,0000,0000,0000,,that thrives as much on the street\Nas it does online,
Dialogue: 0,0:04:45.02,0:04:48.76,Default,,0000,0000,0000,,and has spawned fundamental\Nfinancial services for sneakers.
Dialogue: 0,0:04:49.41,0:04:52.57,Default,,0000,0000,0000,,At some point, I asked myself\Nwhat's really going on in the market,
Dialogue: 0,0:04:52.57,0:04:54.66,Default,,0000,0000,0000,,and two comparisons\Nstarted to emerge.
Dialogue: 0,0:04:54.91,0:04:58.69,Default,,0000,0000,0000,,Are sneakers more like stocks or drugs?
Dialogue: 0,0:04:58.69,0:04:59.70,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:59.91,0:05:01.61,Default,,0000,0000,0000,,In fact, one guy emailed to say
Dialogue: 0,0:05:01.61,0:05:06.09,Default,,0000,0000,0000,,he thought his 15-year-old son\Nwas selling drugs
Dialogue: 0,0:05:06.09,0:05:08.62,Default,,0000,0000,0000,,and later found out\Nhe was selling sneakers.
Dialogue: 0,0:05:09.15,0:05:10.31,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:05:11.06,0:05:13.59,Default,,0000,0000,0000,,And now they use the data\Nto do it together.
Dialogue: 0,0:05:14.00,0:05:16.67,Default,,0000,0000,0000,,And that's because sneakers\Nare an investment opportunity
Dialogue: 0,0:05:16.67,0:05:17.92,Default,,0000,0000,0000,,where none other exist.
Dialogue: 0,0:05:17.92,0:05:21.39,Default,,0000,0000,0000,,And I don't just mean the kids that\Nare selling sneakers instead of drugs.
Dialogue: 0,0:05:21.39,0:05:22.69,Default,,0000,0000,0000,,How about all kids?
Dialogue: 0,0:05:22.69,0:05:25.36,Default,,0000,0000,0000,,You have to be 18\Nto play the stock market.
Dialogue: 0,0:05:26.17,0:05:28.63,Default,,0000,0000,0000,,I sold chewing gum in sixth grade,
Dialogue: 0,0:05:28.63,0:05:30.37,Default,,0000,0000,0000,,Blow Pops in ninth grade,
Dialogue: 0,0:05:30.37,0:05:32.68,Default,,0000,0000,0000,,and collected baseball cards\Nthrough high school.
Dialogue: 0,0:05:32.68,0:05:34.55,Default,,0000,0000,0000,,The cards are long dead,
Dialogue: 0,0:05:34.55,0:05:36.92,Default,,0000,0000,0000,,and the candy market's\Nusually quite local.
Dialogue: 0,0:05:37.42,0:05:42.97,Default,,0000,0000,0000,,For a lot of people, sneakers are a legal\Nand accessible investment opportunity,
Dialogue: 0,0:05:42.97,0:05:45.85,Default,,0000,0000,0000,,a democratized stock market.
Dialogue: 0,0:05:46.92,0:05:48.96,Default,,0000,0000,0000,,But also unregulated,
Dialogue: 0,0:05:48.96,0:05:51.86,Default,,0000,0000,0000,,which is why the story\Nyou're probably most familiar with
Dialogue: 0,0:05:51.86,0:05:54.60,Default,,0000,0000,0000,,is people killing each other for sneakers.
Dialogue: 0,0:05:55.02,0:05:58.53,Default,,0000,0000,0000,,And while that definitely\Nhappens and it's tragic,
Dialogue: 0,0:05:58.53,0:06:02.57,Default,,0000,0000,0000,,it's not nearly the epidemic\Nsome media would have you believe.
Dialogue: 0,0:06:02.57,0:06:06.51,Default,,0000,0000,0000,,In fact it's a very small piece\Nof a much bigger and better story.
Dialogue: 0,0:06:06.89,0:06:08.57,Default,,0000,0000,0000,,So sneakers have similarities
Dialogue: 0,0:06:08.57,0:06:11.56,Default,,0000,0000,0000,,to both the stock exchange\Nand the illegal drug trade,
Dialogue: 0,0:06:11.56,0:06:16.05,Default,,0000,0000,0000,,but perhaps the most fundamental\Nis the existence of a central actor.
Dialogue: 0,0:06:16.05,0:06:18.33,Default,,0000,0000,0000,,Someone is making the rules.
Dialogue: 0,0:06:19.29,0:06:23.28,Default,,0000,0000,0000,,In the case of sneakers\Nthat someone is Nike.
Dialogue: 0,0:06:24.21,0:06:26.49,Default,,0000,0000,0000,,Let me walk you through some numbers.
Dialogue: 0,0:06:26.49,0:06:29.67,Default,,0000,0000,0000,,The resell market we know is 1.2 billion.
Dialogue: 0,0:06:29.67,0:06:31.98,Default,,0000,0000,0000,,Nike, including Jordan brand,\N
Dialogue: 0,0:06:31.98,0:06:36.60,Default,,0000,0000,0000,,accounts for 96 percent of all shoes\Nsold on the secondary market.
Dialogue: 0,0:06:36.61,0:06:38.34,Default,,0000,0000,0000,,Just complete domination.
Dialogue: 0,0:06:38.34,0:06:40.71,Default,,0000,0000,0000,,Sneakerheads love Jordans.
Dialogue: 0,0:06:40.71,0:06:43.66,Default,,0000,0000,0000,,And profit on the secondary market\Nis about one third.
Dialogue: 0,0:06:43.78,0:06:46.44,Default,,0000,0000,0000,,That means that sneakerheads
Dialogue: 0,0:06:46.44,0:06:50.50,Default,,0000,0000,0000,,made 380 million dollars \Nselling Nikes last year.
Dialogue: 0,0:06:51.33,0:06:53.37,Default,,0000,0000,0000,,Let's jump to retail for a second.
Dialogue: 0,0:06:53.37,0:06:57.63,Default,,0000,0000,0000,,Skechers, earlier this year, became the\Nnumber two footwear brand in the country,
Dialogue: 0,0:06:57.63,0:07:00.49,Default,,0000,0000,0000,,surpassing Adidas --\Nthis was a big deal.
Dialogue: 0,0:07:00.49,0:07:03.28,Default,,0000,0000,0000,,And in the 12 months --\Nending June,
Dialogue: 0,0:07:03.28,0:07:07.35,Default,,0000,0000,0000,,Skechers net income\Nwas 209 million dollars.
Dialogue: 0,0:07:08.21,0:07:11.36,Default,,0000,0000,0000,,That means that Nike's customers
Dialogue: 0,0:07:11.36,0:07:14.91,Default,,0000,0000,0000,,make almost twice as much profit\Nas their closest competitor.
Dialogue: 0,0:07:16.06,0:07:17.88,Default,,0000,0000,0000,,That ...
Dialogue: 0,0:07:17.88,0:07:21.33,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:07:21.33,0:07:22.93,Default,,0000,0000,0000,,How's that even possible?
Dialogue: 0,0:07:22.93,0:07:24.26,Default,,0000,0000,0000,,[WTF?]
Dialogue: 0,0:07:24.55,0:07:27.15,Default,,0000,0000,0000,,The sneaker market\Nis just supply and demand,
Dialogue: 0,0:07:27.15,0:07:31.90,Default,,0000,0000,0000,,but Nike's gotten very good\Nat using supply -- limited sneakers,
Dialogue: 0,0:07:31.90,0:07:35.74,Default,,0000,0000,0000,,and the distribution of those sneakers\Nto their own benefit.
Dialogue: 0,0:07:35.74,0:07:37.59,Default,,0000,0000,0000,,So it's really just supply.
Dialogue: 0,0:07:37.77,0:07:41.56,Default,,0000,0000,0000,,Sneakerheads joke that as long\Nas it's limited and Nike, they'll buy it.
Dialogue: 0,0:07:41.56,0:07:45.40,Default,,0000,0000,0000,,Shoes that sell for 8,000 dollars\Ndo so because they're very rare.
Dialogue: 0,0:07:45.40,0:07:48.05,Default,,0000,0000,0000,,It's no different than any other\Ncollectible market,
Dialogue: 0,0:07:48.05,0:07:51.26,Default,,0000,0000,0000,,only this isn't a market at all.
Dialogue: 0,0:07:51.81,0:07:54.28,Default,,0000,0000,0000,,It's a false construct created by Nike --
Dialogue: 0,0:07:54.28,0:07:58.47,Default,,0000,0000,0000,,ingeniously created by Nike, in the most\Npositive sense, to sell more shoes.
Dialogue: 0,0:07:58.91,0:07:59.92,Default,,0000,0000,0000,,And in the process
Dialogue: 0,0:07:59.92,0:08:03.36,Default,,0000,0000,0000,,it provided tens of thousands of people\Nwith life-long passions --
Dialogue: 0,0:08:03.36,0:08:04.96,Default,,0000,0000,0000,,myself included.
Dialogue: 0,0:08:05.71,0:08:08.90,Default,,0000,0000,0000,,If Nike wanted to kill the resell market,\Nthey could do so tomorrow,
Dialogue: 0,0:08:08.90,0:08:10.92,Default,,0000,0000,0000,,all they have to do is release more shoes,
Dialogue: 0,0:08:10.92,0:08:14.60,Default,,0000,0000,0000,,but we certainly don't want them to,\Nnor is it in their best interest.
Dialogue: 0,0:08:15.64,0:08:19.88,Default,,0000,0000,0000,,That's because unlike Apple, who will sell\Nan iPhone to anyone who wants one,
Dialogue: 0,0:08:19.88,0:08:23.49,Default,,0000,0000,0000,,Nike doesn't make their money\Nby just selling 200 dollar sneakers.
Dialogue: 0,0:08:23.75,0:08:26.100,Default,,0000,0000,0000,,They sell millions of shoes to millions\Nof people for 60 dollars.
Dialogue: 0,0:08:27.37,0:08:29.89,Default,,0000,0000,0000,,And sneakerheads are the ones\Nwho drive the marketing,
Dialogue: 0,0:08:29.89,0:08:32.56,Default,,0000,0000,0000,,and the hype, and the PR\Nand the grand cachet,
Dialogue: 0,0:08:32.56,0:08:36.10,Default,,0000,0000,0000,,and enable Nike to sell millions\Nof 60 dollar sneakers.
Dialogue: 0,0:08:37.79,0:08:39.10,Default,,0000,0000,0000,,It's marketing.
Dialogue: 0,0:08:39.10,0:08:42.09,Default,,0000,0000,0000,,It's marketing in the likes to which\Nhas never been seen before,
Dialogue: 0,0:08:42.09,0:08:43.79,Default,,0000,0000,0000,,this isn't in any text book.
Dialogue: 0,0:08:43.79,0:08:47.35,Default,,0000,0000,0000,,For 15 years Nike had propped up\Nan artificial commodities market,
Dialogue: 0,0:08:47.35,0:08:51.72,Default,,0000,0000,0000,,with a Facebook-level hyped IPO\Nevery single weekend.
Dialogue: 0,0:08:51.72,0:08:54.53,Default,,0000,0000,0000,,Drive by any Footlocker at 8am\Non a Saturday morning,
Dialogue: 0,0:08:54.53,0:08:57.45,Default,,0000,0000,0000,,and there will be a line down the street\Nand around the block,
Dialogue: 0,0:08:57.45,0:09:00.58,Default,,0000,0000,0000,,and sometimes those kids\Nhave been waiting there all week.
Dialogue: 0,0:09:00.58,0:09:04.38,Default,,0000,0000,0000,,You know those crazy iPhone lines\Nyou see on the news every other year?
Dialogue: 0,0:09:04.38,0:09:09.37,Default,,0000,0000,0000,,Nike lines happen 104 times more often.
Dialogue: 0,0:09:09.38,0:09:11.04,Default,,0000,0000,0000,,So Nike sets the rules.
Dialogue: 0,0:09:11.04,0:09:13.82,Default,,0000,0000,0000,,And they do so by controlling\Nsupply and distribution.
Dialogue: 0,0:09:14.39,0:09:18.21,Default,,0000,0000,0000,,But once a pair leaves\Nthe retail channel, it's the wild west.
Dialogue: 0,0:09:18.80,0:09:24.30,Default,,0000,0000,0000,,There are very few, if any,\Nlegal unregulated markets of this size.
Dialogue: 0,0:09:24.78,0:09:28.13,Default,,0000,0000,0000,,So Nike is definitely\Nnot the stock exchange,
Dialogue: 0,0:09:28.13,0:09:30.93,Default,,0000,0000,0000,,in fact, there is not central exchange.
Dialogue: 0,0:09:30.93,0:09:35.94,Default,,0000,0000,0000,,By last count, there were 48 different\Nonline markets that I know of.
Dialogue: 0,0:09:36.88,0:09:39.88,Default,,0000,0000,0000,,Some are eBay clones, some\Nare mobile markets,
Dialogue: 0,0:09:39.88,0:09:42.88,Default,,0000,0000,0000,,and then you have consignment shops\Nand brick-and-mortar stores,
Dialogue: 0,0:09:42.88,0:09:44.93,Default,,0000,0000,0000,,and sneaker conventions,\Nand reseller sites,
Dialogue: 0,0:09:44.93,0:09:47.36,Default,,0000,0000,0000,,and Facebook and Instagram,\Nand Twitter --
Dialogue: 0,0:09:47.36,0:09:50.92,Default,,0000,0000,0000,,literally anywhere sneakerheads\Ncome into contact with each other,
Dialogue: 0,0:09:50.92,0:09:53.15,Default,,0000,0000,0000,,shoes will be bought and sold.
Dialogue: 0,0:09:53.80,0:09:58.83,Default,,0000,0000,0000,,But that means no efficiencies,\Nno transparency,
Dialogue: 0,0:09:58.84,0:10:01.42,Default,,0000,0000,0000,,sometimes not even authenticity.
Dialogue: 0,0:10:01.88,0:10:04.89,Default,,0000,0000,0000,,Can you imagine if that's\Nhow stocks were bought?
Dialogue: 0,0:10:05.42,0:10:07.73,Default,,0000,0000,0000,,What if the way to buy\Na share of Apple stock
Dialogue: 0,0:10:07.73,0:10:10.54,Default,,0000,0000,0000,,was to search over 100 places\Nonline and off,
Dialogue: 0,0:10:10.54,0:10:12.64,Default,,0000,0000,0000,,including every time\Nyou walk down the street
Dialogue: 0,0:10:12.64,0:10:15.46,Default,,0000,0000,0000,,just hoping to pass someone\Njust wearing some Apple stock?
Dialogue: 0,0:10:15.46,0:10:17.41,Default,,0000,0000,0000,,Never knowing who had the best price,
Dialogue: 0,0:10:17.41,0:10:20.00,Default,,0000,0000,0000,,or even if the stock\Nyou were looking at was real.
Dialogue: 0,0:10:20.00,0:10:21.84,Default,,0000,0000,0000,,That would surely make you say,
Dialogue: 0,0:10:21.84,0:10:23.80,Default,,0000,0000,0000,,[WTF?]
Dialogue: 0,0:10:23.80,0:10:26.47,Default,,0000,0000,0000,,Of course that's not how we buy stock.
Dialogue: 0,0:10:27.20,0:10:30.68,Default,,0000,0000,0000,,But what if that's not how\Nwe need to buy sneakers either?
Dialogue: 0,0:10:31.27,0:10:32.63,Default,,0000,0000,0000,,What if the inverse is true,
Dialogue: 0,0:10:32.63,0:10:35.96,Default,,0000,0000,0000,,and what if we could buy sneakers\Nexactly the same way as we buy stock?
Dialogue: 0,0:10:35.96,0:10:37.68,Default,,0000,0000,0000,,And what if it wasn't just sneakers,
Dialogue: 0,0:10:37.68,0:10:41.02,Default,,0000,0000,0000,,it was any similar product like watches\Nand handbags and womens' shoes,
Dialogue: 0,0:10:41.02,0:10:44.08,Default,,0000,0000,0000,,and any collectible, any seasonal item,\Nand any markdown item?
Dialogue: 0,0:10:44.47,0:10:48.35,Default,,0000,0000,0000,,What if there was\Na stock market for commerce?
Dialogue: 0,0:10:48.35,0:10:51.60,Default,,0000,0000,0000,,A stock market of things.
Dialogue: 0,0:10:52.47,0:10:56.71,Default,,0000,0000,0000,,And not only could you buy in much more\Neducated and efficient manner,
Dialogue: 0,0:10:56.71,0:10:59.90,Default,,0000,0000,0000,,but you could engage in all\Nthe sophisticated financial transactions
Dialogue: 0,0:10:59.90,0:11:01.68,Default,,0000,0000,0000,,you can with the stock market.
Dialogue: 0,0:11:01.68,0:11:03.53,Default,,0000,0000,0000,,Shorts, and options, and futures,
Dialogue: 0,0:11:03.53,0:11:06.45,Default,,0000,0000,0000,,and well, maybe you see\Nwhere this is going.
Dialogue: 0,0:11:06.45,0:11:10.37,Default,,0000,0000,0000,,Maybe you want to invest\Nin a stock market of things.
Dialogue: 0,0:11:11.30,0:11:17.59,Default,,0000,0000,0000,,Because if you had invested in pair\Nof Air Jordan 3 Black Cement in 2011,
Dialogue: 0,0:11:17.59,0:11:20.26,Default,,0000,0000,0000,,you could either be wearing them onstage,
Dialogue: 0,0:11:20.26,0:11:21.96,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:11:21.96,0:11:25.25,Default,,0000,0000,0000,,or have earned 162 percent on your money.
Dialogue: 0,0:11:26.13,0:11:29.34,Default,,0000,0000,0000,,Double the S&P and 20 percent\Nmore than Apple.
Dialogue: 0,0:11:29.34,0:11:31.06,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:11:31.59,0:11:34.05,Default,,0000,0000,0000,,And that's why\Nwe're talking about sneakers.
Dialogue: 0,0:11:34.49,0:11:35.47,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:11:35.70,0:11:37.16,Default,,0000,0000,0000,,(Applause)