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The average price of supreme shirts range from around $90 to $1400 these can only be bought from Supreme stores  and re-sellers.

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This works as since the items are released at such low quantities the demand for the items are very great hence with a large demand comes a larger price tag hence re-sellers are able to get a larger profit which leads re-sellers to buy out much of the already limited stocks. Hence, this decreases supply and increases demand.

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Supreme is a very popular street wear brand that features special limited edition apparel that retails for $100-$300 but sold at resale value of $4.5k for a simple box logo hoodie.

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Supply and Demand in the Fashion Industry 

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Supply and Demand in the Fashion Industry 

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Demand and supply in the fashion industry is increasingly prominent, as you can see from brands such as Supreme. The low supply of stocks for each apparel drives a higher demand for their goods.

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Consumers also have the option to buy shirts from other competitors of Supreme such as A Bathing Ape or (BAPE). Prices of BAPE shirts can cost from $80 - $110.

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"Supreme clothing isn’t particularly remarkable — think T-shirts, jumpers, caps and leather accessories — but plaster that iconic red logo on a white shirt and suddenly, it’s worth hundreds of dollars", pointing out that "the brand’s success lies in its scarcity model. It releases a limited number of new products each week, nowhere near the number needed to keep up with demand", causing long lineups as well as inflated secondary market (resale) prices.

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The price range of Balenciaga's goods are from $450-$7000. The price of this shirt is $625.

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With brands like Supreme, the company creates an artificial lack of supply by creating products purposely hard to get a hold of, additionally their products are kept in high demand by very limited releases. Hence this makes their products seem limited edition products to drive up the demand. Therefore customers are willing to pay more for these so called limited edition products, allowing them to inflate their prices.

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In streetwear, there is no such thing as market equilibrium. This is because the demand exceeds the supply, hence the inflated prices of the products. This continues to promote the street-wear culture because everyone is trying to get their hands on the next rare or exclusive item.

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It's been five weeks since men's fashion month kicked off in London and with the exception of Burberry, Gucci and Balenciaga - each have opted for co-ed shows presented during the upcoming women's fashion month - another men's season has drawn to a close.

The most evident shift could be observed in the transition from dominant streetwear silhouettes to a new sense of tailoring as seen at Louis Vuitton, Dior Homme and Prada. After all, the same young men who in recent seasons have been parading down the runways in sneakers, technical outerwear and oversized everything are growing up. And so it wasn't surprising that a number of fashion publications were quick to shout that streetwear is passé, over, done. But it's not. Streetwear as luxury brands have made it out to be is evolving, and that's a good thing for everyone.

Ever since the early days of subversive subcultural movements in the 1970s, young surfers and skaters have gravitated towards garments expressing individuality and comfort, while also serving as sartorial emblems that signify being part of a specific tribe, often an international community of like-minded youngsters with a lifestyle encompassing similar tastes in fashion, music and art, and political beliefs.

Wearing Stüssy T-shirts and later FUBU sweatshirts weren't just status symbols, they were physical tokens of belonging. These brands never made just clothing. They made clothing with meaning.

Still, major luxury houses remained dismissive of the growing cultural power of street culture, deeming it brand diluting. It took a number of forward-thinking designers to cross-pollinate the two once thought of as opposites by sending their luxury versions of banal streetwear items down the Paris runways - think Riccardo Tisci's Fall/Winter 2011 "Rottweiler" collection for Givenchy, Balenciaga's "Join a Weird Trip" sweatshirts designed by Nicholas Ghesquière for Fall/Winter 2012 and Céline's beige rendition of the Air Force 1s for Fall/Winter 2014 under the helm of Phoebe Philo.

By 2015, every luxury house, big or small, had created their indistinguishable take on the white, minimal sneaker inspired by adidas' Stan Smith and Superstar models. It was as much of a safe entrance into this new phenomenon called "athleisure" and its closely-knit ties to streetwear, as it was a response to the casualization of the way people were starting to dress. Nothing innovative there.

January 2017 was a turning point when Louis Vuitton's artistic director Kim Jones launched a full-ranged collaboration with Supreme for the house's Fall/Winter 2017 season. That same month, Demna Gvasalia debuted Balenciaga's chunky Triple S sneaker - designed by footwear legend David Tourniaire-Beauciel, and inspired by retro Nike and New balance models - prompting instant consumer hysteria.

For the first time, it was luxury, not streetwear, dictating the consumption behavior of young shoppers when it came to sneakers. Streetwear, sportswear and other luxury brands followed suit with a thousand and one versions of the "dad" sneaker and by the time Virgil Abloh debuted his first collection as artistic director of Louis Vuitton and Kim Jones at Dior Homme in June 2018, that same luxury influence on youth culture had transcended beyond sneakers alone.

It isn't hard to understand why premium brands want to court younger audiences. By 2025, 45 percent of the luxury market is set to be made up of Gen Z and Millennials, while these generations combined resulted in 85 percent of all luxury growth in 2017.

In part, the new luxury consumer is starting to respond to luxury's efforts towards streetwear. Mainly because of luxury's new guard, including Virgil Abloh, Kim Jones and their more emerging peers Matthew Williams, Samuel Ross, Heron Preston and Jerry Lorenzo, who clearly understand that streetwear is about more than simply appropriating literal street style cues like graphic hoodies, oversized outerwear and sporty sneakers. Instead, the direction they're taking us into isn't streetwear as we know it.

As Virgil Abloh worded it in the show notes for his latest Michael Jackson-inspired Fall/Winter 2019 collection: "[Streetwear's] sportswear properties are undergoing a critical transformation into luxury."

Indeed, streetwear, as it was presented in the past Fall/Winter 2019 men's season, is a first glimpse around how luxury brands will cater to young consumers in terms of design in the near future. Colorful, relaxed tailoring - not in the Saville Row way - paired with formal shoe-sneaker hybrids and a fresh take on leather goods made relevant to a younger generation through innovative hardware and prints is exactly what will get the new luxury consumer excited, especially when done by designers close to the culture.

Designers without direct ties to street culture equally succeeded this season, by using fabrics, creating silhouettes and authentically partnering with aspirational brands and figures with roots in youth culture like Fendi x Porter, Dior Homme x Matthew Williams and Valentino x UNDERCOVER.

The new way of working was reflected by Valentino's creative director Pierpaolo Piccioli after his latest show in Paris. "I'm not going to say that streetwear is over, I don't think so," he told Highsnobiety. "It's about rethinking the values of sartorialism, but with a more streetwear approach. So less effort and more relaxed. That's the only way for me."

But while luxury brands are finally learning how to speak the language of streetwear their own way, the majority still have a lot of catching up to do when it comes to the main component that makes kids around the world line up for hours each week to buy the newest drop and the hours spent on forums and Facebook groups.

For younger generations luxury no longer means exclusivity or high price-points. Instead, having access, being value-driven and buying into a tribe is what makes them tick. Without those elements, hyped clothing without any cultural credibility won't be enough to buoy young shoppers going forward. As mentioned in Highsnobiety's first white paper, 85 percent of those interviewed believe that what their clothes represent is just as important as its quality or design.

Luxury brands need to learn how to speak through this new luxury audience, not to them. Streetwear as we knew it in past seasons isn't necessarily streetwear anymore, yet counterculture, and its interconnected sense of dressing, will be around forever in whatever form that may take, be it hoodies today or tailoring tomorrow.

And until luxury brands crack that code, step down from their ivory tower and let in the people they're designing for, they'll always be one step behind where youth culture is truly playing out.

For a deep-dive of how streetwear infiltrated, then defined the luxury market download our full whitepaper here.

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Luxury Brands Are Finally Learning How to Speak Streetwear Their Own Way

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Years in the making, it seems luxury fashion brands have finally figured out how to speak streetwear their own way. Read about the evolution here.

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Streetwear brands such as Supreme are slowly conquering the fashion scene, with their demand growing exponentially. However, since they are constantly having limited, time "drops", they are able to inflate the prices and keep their supply low.
Having be a luxurious item due to its high price tag, therefore it is price inelastic. To all the "Hypebeasts", it is a habit to collect such shirts, thus it is price inelastic.

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Key takeaways:

Streetwear demand is as strong as ever. A recent Piper Jaffray survey found that US teens' interest in brands like Supreme and Champion is growing exponentially, while Bain & Co. notes that streetwear-influenced designs continue to drive sales for the luxury sector.

High-priced, casual clothing is commercially attractive because it is relatively inexpensive to produce. Meanwhile, demand is kept at high levels because of the limited-edition, timed "drop" model.

Investors are circling brands poised to match Supreme's billion-dollar valuation. Possible targets include Noah and Palace, which offer their own takes on the aesthetic made popular by Supreme.

In a 2018 report, Bain & Company again highlighted streetwear as a growth driver for the luxury sector. Casual clothing "remains a key lever to attract new customers" to high-end brands, the consultancy noted.

The attention to streetwear is no longer casual. In late 2017, The Carlyle Group made an investment in Supreme that valued the New York streetwear label at $1 billion. It was an eye-opening moment for an industry destabilised by fluctuating economic growth, accelerating turnover in the creative and corporate ranks, and a retail landscape trying to adapt to a consumer rewired by the internet and social media. Brands that exist at the nexus of fashion and skateboarding - Palace, Supreme and Noah, to name just a few - have the cultural clout once reserved solely for high-end luxury labels like Gucci, Saint Laurent and Fendi.

Welcome to the age of the billion-dollar streetwear brand. Tracksuits and trainers are the new suits and brogues, the new status symbols are oversized hoodies and graphic T-shirts, and explosive growth is being forecast for brands once seen as niche.

That streetwear is now both a category and a trend perhaps explains its extended moment in the sun. But while some predict that demand for pricey casual clothing has passed its peak, the numbers tell a different story. In addition to Bain's findings, the most recent version of Piper Jaffray's semi-annual US teens survey found that interest in Vans is at an all-time high, while category champions like Supreme, Champion and TH/CK are top of mind among Gen Z.

"There has been an up, up, up trajectory," says Katy Lubin, director of communications at global fashion search platform Lyst, adding that the dominant aesthetic in fashion these days is a mix of luxury, streetwear and sportswear, which "have all merged to become the dominating aesthetic driving fashion forward".

What makes streetwear so appealing to investors? Mortimer Singer, chief executive of Traub, a corporate business development firm that also operates an equity investment arm, notes that Supreme's core product offering is high-margin apparel like hoodies and T-shirts that are inexpensive to make but thanks to savvy marketing command high prices. A category that includes brands like Vans and Converse was never high-end by default, but manic consumer interest and savvy co-opting by the major labels means that streetwear now lives alongside luxury.

Supreme also completely controls its supply, giving it the ability to stoke up demand. That's a model also relied on luxury brands such as Goyard, known for its extremely limited availability. Far from signalling a peak, Carlyle's Supreme investment only seems to have spurred more money to enter the category: billionaire Adrian Cheng last October announced that his C Ventures was leading a $25 million investment round into Chinese streetwear platform Yoho.

What brands are most likely to match Supreme's $1 billion valuation? We round up the likely candidates below.

4 Names to watch

Launched in London in 2009 by Lev Tanju, Palace's brand mixes the streetwear aesthetic and the scarcity business model à la Supreme. Its deep roots in skateboarding culture give it built-in authenticity. Palace's 2018 collaboration with Polo Ralph Lauren and cheeky marketing campaigns starring current menswear fixation Jonah Hill have helped push it further into the mainstream consciousness, and it is a new point of obsession for hypebeasts wary of Supreme now that it's gone "mass".

Launched by former Supreme creative director Brendon Babenzien in 2015, this is skatewear for guys who've grown up a little. Think tailoring mixed in with more casual, showy fare, all made from luxury fabrics in mills and workshops where, according to the brand, "tradition, expertise and human dignity take precedence over the bottom line". Babenzien has chosen a retail distribution model that favours his New York and Tokyo stores, as well as direct online sales, over wholesale. There is also a pair of shop-in-shop spaces at both the London and recently opened Los Angeles outposts of Dover Street Market.

Kith is a dual-sided business. Founded in 2011 as a streetwear-centric retail store, founder Ronnie Fieg has now launched his own clothing imprint to hang along other clothing brands, a curated sneaker collection and a cereal "bar". Today Kith has five stores and 1.7 million Instagram followers. The brand has also launched a women's label.

Louis Vuitton men's creative director Virgil Abloh is the founder and designer of Off-White. The brand's easily identifiable graphic design motifs (the oversize X, quotation marks) and sport-meets-street aesthetic helped land him the role of men's creative director at Louis Vuitton. Off-White's retail imprint is set to double to 40 stores in 2019, collaborations with brands like Nike, Rimowa and Converse debuted over the past two years, and Abloh topped the Lyst Hot Index, beating out Gucci and Balenciaga.

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Why streetwear brands are now billion-dollar concerns

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Key takeaways: Streetwear demand is as strong as ever. A recent Piper Jaffray survey found that US teens' interest in brands like Supreme and Champion is growing exponentially, while Bain & Co. notes that streetwear-influenced designs continue to drive sales for the luxury sector.