October 25, 2017 by trapomar
By Omar Estrada, Inglewood,Ca
Earlier this month the famous, and very hyped, streetwear brand Supreme had a spike in net worth after selling a fifty percent stake in their business to the Carlyle Group. If you are anything like me, you may have no idea who the Carlyle Group is. And, if you also don’t know anything about Supreme, then you might be wondering how they became a billion dollar company by selling hyped clothes to teenagers.
Supreme has a new “drop” every Thursday of the new fashion season. Selling $40 t-shirts and outerwear that ranges from $120-$500 at retail, will now, and later, always sell out on the day of release, and sell for double the price once the hype of the newly released piece hits the resell market. Now we both know that the company doesn’t get a dime from what’s made on the aftermarket but, they get enough attention to have had a major collaboration this year with a major high fashion brand, Louis Vuitton.
The Supreme x Louis Vuitton collection is what I would credit most to Supreme’s net worth spike. This collection consisted of the brand’s most expensive retail pieces and the resell market was the meanest I have lived to witness. With basic pieces like a jacket or even a hooded sweatshirt going for the price of a used car, the small accessories were not even an exception with key chains going for a thousand plus dollars.
Now as for the Carlyle Group, all I was able to learn was that it is one of the world’s largest and most successful investment firms started up in Washington D.C., and now they own a big chunk of Supreme; that’s about all I care for.
I don’t predict a change in how Supreme runs their brand or the way they will deliver their products. As long as they release something new, there will always be a market for it.