There’s this idea that’s been brewing away in the back of my mind for a little while. For context, I’ve been obsessed with finance and money for a long time now. My interests have bounced between real estate, stocks and shares, crypto (many rabbit holes!) and equity crowdfunding. With crypto especially, it’s just as much a hobby or a game as it is an investment.
Most people reading this will probably have heard of the clothing retailer Uniqlo. They have a sub-brand called ‘UT graphic Tees’ - they are ‘limited edition’ tshirts, usually a collaboration with a popular artist, brand or series/franchise. Examples include Keith Haring, Volkswagen, Marvel, Pokemon, etc. Their retail price is (in Australia) is about $AU20.
My simple idea is just to buy UTs that I personally like in pairs (one for me to wear and one to flip), hold them for years and sell them when there’s less supply for them. This idea is kind of inspired by my experience collecting NFTs and also paying close attention to folks like Gary Vee. Often when I have weird ideas like this I propose the idea on Reddit and see what others think. Most people thought it was a dumb idea that would fail. Anyways, I took on board a lot of things the feedback I received and decided it’s something I want to try just to test if my theory was right. Whether it succeeds or fails, I’m sure I’ll learn something I’ll be able to transfer over to my next obsession.
There are some pros and cons that I have identified (with some help from folks in the Uniqlo subreddit), starting with -
Cons
- From what I’ve heard, these ‘limited edition’ tshirts have no limits on supply. The popular ones will get re-printed if they sell out fast, while the unpopular ones stay in stores for months.
- They are just average cotton tshirts - they have to be for the price they retail at (I won’t be getting into Uniqlo’s ESG credentials here)!
Pros
- The vintage and collectible markets are hot.
- The tshirts people wear are an expression of who you are, what your interests are, and UTs have a really good range of references to popular culture and art through the years.
Given the ‘looseness’ of supply, there is no way these tshirts would sell on secondary markets for a profit until years after the fact. However, it’s pretty low-risk to just buy three or four designs a year that I personally like - in pairs and in my size - and preserve them in their original packaging until I think there’s a market for them. This will give me time to learn the ins and outs of UTs - ie, What franchises keep getting re-made? I’ve only been looking into this for a week or so but I can already see that brands like Disney keep coming up in different formats, which begs the question - What’s better, brands with mass-market appeal, or niches that don’t get made that often? I can test the waters on marketplaces like eBay after a couple of years, and then if they don’t sell just keep them in the wardrobe and try again later. The worst-case scenario is that I will be left with tshirts in my size that I like.
On the flip-side, because this ‘business model’ (I use the term loosely) relies on waiting for supply to reduce such that the demand (hopefully) is greater, it will be years before I know whether or not the idea is viable. And because I’m only buying very small quantities it is by no means a get-rich-quick scheme.
I‘ve already made some purchases. First order - a couple of tshirts from the brands (Volkswagen collection) because, you know, I’m a Kombi guy ...
Second order - Marukami Radio (Books, Music, Cats) - one of my favourite authors and I love books, music and cats. I also believe this is a nod to Murakami’s popup radio show he hosted during the pandemic in 2020, so it’s kind of historic. With the same order I bought a black t-shirt featuring the Mona Lisa from the Musee de Louvre collection.
Hope the moths don't eat them if you keep for years to flip.
Yes that is a risk ;-)