‘Why is Supreme is so expensive?’ is one of the most asked questions in the world of fashion, right now.
But, to understand how Supreme has reached such a high price tag and popularity, we must go beyond the Reddit rumor mill.
In this article, I’ll introduce you to the brand’s history, heritage, and unveil 4 secret strategies it uses to create brand image and demand.
From a small skateboarding label to a billion-dollar streetwear company in 2021, Supreme is indeed one of the world’s most expensive brands.
Moreover, following the partnership struck with the luxury giant LVMH, Supreme has become a label more expensive than many labels operating in both, luxury and streetwear markets.
For example, Supreme’s Louis Vuitton teddy bear at $110,000 and Supreme Louis Vuitton trunk at $125,000 are two of the most expensive supreme items in their respective categories.
So, Why is Supreme so Expensive?
Supreme reaching a cult-like following and the status of one of the most expensive brands in the world is no accident.
In fact, Supreme has become one of the most expensive brands in the world by using, to perfection, four key business strategies:
SUPREME 4 KEY STRATEGIES:
1. Rebellious Brand Image
(Rare Skating DNA, Streetwear ‘Supremes’, Copyright Infringers)
2. Hard-to-Get Approach
(Limited Store Access, Limited Stock, Limited Purchasing)
3. Limited Editions & Rare Collections
(via Partnerships With Celebrities & Luxury Brands)
4. Powerful Community
(Fans, Resellers, and Collectors)
As you’ll discover in this article, these 4 strategies are beautifully intertwined, with each one strengthening the next one.
For example, each limited edition has lured more celebrities in; in exchange, a community of fans, resellers, and collectors was built.
To outsiders, Supreme is a brand with an eye-catching logo, limited product releases, and designer collaborations.
To its followers, Supreme is an obsession that keeps building an entire subculture of its own.
Without further ado, here’s why Supreme is so expensive right now, in 2021.
Rebellious Brand Image
Skating DNA, Streetwear ‘Supremes, Copyright Infringers
Supreme was founded in 1994 by James Jebbia, in the SoHo neighborhood of Manhattan, New York.
Launched as a basic skateboarding store, less than 30 years later, the brand has become one of the most popular clothing brands in the world.
In the beginning, Supreme’s store was selling only hoodies and sweatshirts, targeting New York’s burgeoning skating community.
Throughout the ’90s and early 2000s, skaters played a massive role in the creation and adoption of the ‘streetwear style.
Since its inception, Supreme has cultivated and maintained an image of skatewear originality and authenticity.
As such, each one of the brand’s limited releases was highly prised by the community.
While Supreme was taking New York by storm, the same community of skaters was making the brand famous on the other coast of the US.
Located in central Los Angles, Fairfax Street is packed with hundreds of boutique shops and designer brands.
Streetwear labels are particularly famous in Los Angeles, seen as the birthplace of modern skateboarding.
And, as the skater culture is at the core of the streetwear movement, Supreme has been, and will always be an OG, a history maker, and a number one.
However, Supreme reached country-wide popularity and fame in 2006, thanks to the Supreme Blazer SB, a shoe collaboration with Nike.
Initially, the shoes retailed for around $150.
But, shortly after Kanye West was seen wearing them at the Grammy Foundation Starry Night party, their price went up six times, to $800.
That was the moment when Supreme’s logo started to gain recognition on a global scale.
And the transition was
20 years ago, Supreme was a small skateboarding store in New York.
How much is Supreme worth today? well, Supreme is a $1 billion streetwear company.
Nowadays, Supreme’s iconic logo is easily recognizable for its simple and yet, original construct:
White italic lettering, over a plain red background.
Interestingly enough, not many people know that Supreme’s logo is a direct copy of Barbara Kruger’s (a conceptual artist) design work.
But, that’s somehow normal, as copyright theft is another key part of Supreme’s makeup and DNA.
In time, Supreme’s ‘appropriation’ of images has contributed to the brand’s rebellious image and growing popularity.
The brand’s designers copied and adapted classic pop-cultural imagery and logos, to make sure each piece feels more like contemporary art or graffiti, rather than another fashion brand.
One of the earliest and most popular Supreme T-shirts was the one showcasing a photo of Robert De Niro, from the film Taxi Driver, accompanied by the brand’s iconic red-and-white logo.
Supreme also produces clothing that includes popular phrases, allowing customers to ‘speak’ through their clothing.
The brand’s products often feature innovative designs and Supreme logo variations, aiming to keep the products exciting.
In the past, the company’s use of unlicensed imagery has led to Supreme being served several cease-and-desist letters from NHL, NCAA, and even LVMH.
But despite all legal wars and constant expansion, Supreme has managed to keep its cool, alternative, exclusive, and rebellious image.
Moreover, it has managed to maintain its skater DNA and following, despite selling a 50% stake in the brand to a private equity firm.
Top it off, Supreme’s logo stands out; it is identifiable, cool, and easily recognizable.
The more you are exposed to Supreme’s logo, the more likely you’ll develop an association, a familiarity, a sense of belonging and connection with it.
Limited Store Access, Limited Stock, Limited Purchasing
Obtaining the latest Supreme sneakers, jacket, bag, or T-shirt is not an easy task.
But, that’s because Supreme is PURPOSEFULLY making the whole process of buying and getting hold of them extremely hard.
Apart from their online store, Supreme sells merchandise at only 11 brick-and-mortar stores across the world.
The brand’s approach is intentional, to create this image of hard-to-get, exclusivity, and limited availability of products.
For example, Monday morning, you go to Supreme’s website.
There, you’ll have to enter your shopping information such as name, email, phone number, address, and credit card number.
Tuesday, the company sends you a text message to let you know IF you’ve been selected to stand in line, at one of their stores.
Wednesday, Supreme sends you another text, informing you of the time and store you’ll have to report to.
Finally, almost a week later (Thursday), you can go (only to the given store and at the given time slot), and wait in the queue to get the product you want so much.
To top up that hard to get, there’s another hurdle in place, namely the only-one-piece-per-style.
What that means is, if a Supreme shirt comes out in black, red, and grey, you can only get it in one color, let’s say grey.
So, if you also want it in black and red, you’ll have to get two other people to order it for you.
Then, they’ll have to stand in Supreme’s waiting line, next to you.
But that’s not uncommon at all, as I know a lot of the people who stand in line for friends, family, and even someone else that pays them to do so.
Another hard-to-get Supreme technique that generates further interest is the intentional release of FEWER products than the market demand.
The more Supreme makes their buyers work to gain access to products, the more alluring these services and products are becoming.
Making products incredibly hard to access is a strategy that Supreme has copied from luxury brands, after noticing it creates additional value in consumers’ eyes.
The more hoops and loops consumers have to jump through, the more relevant, justified, and worth it each purchase is to them.
For example, both London and New York have lots of top quality streetwear brands.
Yet, the more exclusive and harder to get they are, the more demand they generate, and Supreme is the best example in this class.
Supreme also exploits to perfection the law of supply and demand.
Whenever Supreme launches a limited edition collection, in a low offering, it creates a higher demand for those products, which, in time, becomes further valuable.
And that’s the point when resellers and collectors come in – see point 4 on this list for more info.
As Supreme’s collectors are interested in rare and limited edition pieces, they don’t mind buying Supreme at reseller prices, rather than buying them directly from the store.
Limited Editions & Rare Collections
Via Partnerships With Celebrities & Luxury Brands
Supreme is known for several COLLABORATIONS with Nike, Dover Street Market, The North Face, Vans, LVMH, and many more high profile brands.
And, the more celebrities wore Supreme products, the more Supreme’s outfits and accessories have gained popularity throughout those interested in the so-called celebrity culture.
Some of the biggest names seen in Supreme clothing include Kanye West, Chris Brown, John Mayer, and Kid Cudi.
Indirectly, global stars and celebrities have boosted the brand’s popularity, in what’s now called the ‘Kanye effect‘ – an indirect reference to the star wearing the ‘Supreme Blazer SB’ shoe.
If you didn’t catch the story above, these Supreme shoes were launched in collab with Nike, and retailed for around $150.
The price didn’t change much until Kanye West was spotted wearing them in 2007, at the Grammy Foundation’s Starry Night.
Right after Kanye’s pics hit the internet, Supreme’s shoes resale price went up six times, to $800.
Supreme launches several limited editions in collaboration with top celebrities and brands.
To better understand the concept of ‘Limited Edition‘, we are going to look at an example of two identical jackets.
Both made by The North Face from idential materials, built on the same Gore-Tex technology.
One jacket costs $400, the other one is $4000. So, what’s the difference?
Well, the jacket priced at $4000 is part of a Supreme x The North Face collaboration.
Similarly, the teal box-logo sweatshirt worn by Tyler, the Creator in his “She” music video, retailed at around $150.
However, once a buyer resold it, the price went up to $3,500.
This is how, indirectly, Supreme has created a reseller market of people who buy their products not because they are interested in wearing them, but because they are interested in making money.
Whenever there’s an opportunity to make money, there’s going to be people (queuing around the block).
These people aim to resell Supreme products at prices much higher than the initial retail price, for a profit.
And that takes us to the 4th strategy used by Supreme to become so expensive: Supreme’s fan base or resellers and collectors.
Fans, Resellers, and Collectors
In time, Supreme has amassed an enormous fan base.
On Instagram alone, the brand has well over 20M fans, from all over the world.
As word of a new release spreads through their online communities, fans begin to book shopping sessions online, hoping to line up outside their closest Supreme stores.
Then, the madness commences, with shoppers constantly refreshing Supreme’s web pages to get the brand’s latest products.
Supreme’s fans (called hypebeasts) contribute significantly to the climate of collective madness on forums, Instagram feeds, and resale websites.
A new Supreme release’s excitement level sees resellers use any means available, such as software sneaker bots, to access the brand’s products.
Once they get their hands on Supreme’s collections, resellers place them on websites like eBay, StockX, and even on auction houses like Sotheby’s, for the most expensive ones.
The famous British auction house included in its 2019 catalog the largest batch of Supreme things in its auction history.
According to Telegraph, over 1,300 items owned by Supreme’s collector Yukio Takahashi – from minibikes to pinball machines – sold for a total of £200,000.
Supreme is almost a faith in Japan, the country with six out of eleven Supreme stores globally.
Because Supreme’s products are in limited editions and extremely demanded, some resells can reach up to 30 times their original price.
Supreme x Louis Vuitton was the brand’s most significant and most notable collaboration in streetwear in history.
Given that Louis Vuitton produced and distributed the collection, even the early retail prices were high.
In reality, the price of an original Supreme product bought from their stores isn’t anything out of the ordinary (price-wise) especially compared to other similar brands out there.
For example, most graphic t-shirts from Supreme retail for $36.
That’s not more than what you’d pay for a similar t-shirt from other brands in the streetwear category.
But, as the brand only makes a limited number of hyped-up items everyone wants, these products sell out fast and long before most people have a chance to get one.
For example, when Supreme dropped their famous box logo design on crewnecks during their Fall/Winter 2018 collection, all nine colorways and four sizes for each colorway sold out in 32 seconds.
Moreover, most customers trying to get a Supreme crewneck got a card declined error, as the company was trying to block online fashion bots from mass purchasing items.
Once sold out, customers paid almost $1,000 for the same crewneck that someone else managed to get from the official website for just $150.
However, not all Supreme products resell for profit.
An item that doesn’t resell for more than the original retail price is what we, in the Supreme community, call a ‘brick.’
There are many Supreme bricks on reselling platforms if you’re interested in getting a Supreme item without paying a crazy premium price!
Here’s some information on the best places to buy authentic Supreme items if you’re interested in checking out some prices.
Finally, next time you hear someone asking, “Why is Supreme so expensive?“, point them to this article and help them understand the whole culture behind Supreme.
The business strategy Supreme is built on, their limited editions, resellers, collectors, and their collaboration with celebs and well-known fashion brands.
Now it’s your turn…
Why do you think Supreme is so expensive?
Do you think Supreme is worth the money?
Please leave your comments below so others can benefit from your view.