😢The Problem

Problem Statement

In the rapidly evolving sneaker and fashion resale markets, local businesses face significant challenges competing with major e-commerce platforms like StockX and GOAT. These giants generated over $2 billion in gross merchandise value last year, highlighting the potential of the industry but also exposing the struggles of local stores to access these economic benefits.

Currently, about 75% of high-demand sneaker releases are dominated by large online platforms, leaving local businesses and consumers with limited access and inflated prices. Traditional payment methods further exclude a portion of the global population ready to transact in cryptocurrencies, which are growing in popularity but remain underutilized in mainstream commerce.

The authenticity of sneakers and fashion items is critical, yet counterfeit products undermine this value, eroding consumer trust. Nearly 60% of sneaker enthusiasts express dissatisfaction with current authenticity verification methods, and over 50% of buyers report frustration with prolonged delivery times.

Additionally, the fashion shopping experience is becoming more complex, with 56% of online returns occurring because the product ordered online doesn’t match the description. This discrepancy drives many fashion brands back to traditional retail. Despite Gen Z's reputation for online shopping, half prefer in-store experiences, and 59% of consumers are likely to browse online and buy in-store. Conversely, 54% are likely to look at a product in-store and then purchase it online.

Local stores also struggle to compete due to lower digital barriers that allow global market access, leading to increased competition. The fashion e-commerce market alone increased to $183 billion in the US, with projections to exceed $300 billion by 2027. Similarly, the global footwear market is expected to grow from $365.5 billion in 2022 to $530.3 billion in 2027.

Generative AI offers promising advancements for the fashion industry, potentially adding up to $275 billion to operating profits over the next few years. AI can enhance product ideation, customize consumer experiences, optimize supply chains, and revolutionize marketing strategies.