Walking around Tokyo today I passed a Bathing Ape store on got onto the topic of how the brand came to be. After a little Googling I ran across this excellent article that documents the fall of the brand and eventually to this interesting theory on “cultural arbitrage”:
The hipster elite are starting to show annoyance at this development. Former mo wax guru James Lavelle, quoted in Tokion, lamented that it is now impossible to stay “underground.” Lavelle and his kindred folk profit from exploiting cultural arbitrage: taking information from inaccessible sources and cashing in on that unequal access to information. (In general, a lot of people whom you probably think are cooler than you make a bulk of their money from this inequality in information.) No one in the West knew that Bape is a mainstream brand in Japan, and therefore, Lavelle was able to subtly and indirectly create the brand image to his own liking…* Now, with the high speed “information superhighway,” profit from cultural arbitrage business looks doubtful in the long run.
* I had to cut out a few sentences because they talk about how financial arbitrage used to work but no longer does, which just isn’t true.