Reigning Supreme: Streetwear brand finds success with innovative marketing

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Streetwear brand Supreme has attracted young buyers to line up for their clothes. And now, even their parents are on board. What's the secret behind the brand's success? Karina Huber finds out in New York.

It's 11 am on a Thursday. Dozens of people are lined up outside the Supreme clothing store in New York. They're waiting for a so-called 'drop'-or new release. This time it's a collaboration with North Face.

"It's the hype, you know. It's what young people do."

These young people, mainly men, are called 'hypebeasts'. They thrive on collectible clothes and sneakers, which they keep for themselves or sell for inflated prices in the secondary market. Some items are marked up by 1,000 percent, or more.

"I know people who - like this is their job - is to resale. They don't do anything else but resell clothes."

KARINA HUBER NEW YORK "Supreme emerged in 1994 out of a skate shop in New York. It quickly developed a cult-like following. Today it has eleven stores around the world and is valued at a billion dollars. Half of it is owned by private-equity giant Carlyle Group."

Despite its Wall Street affiliation, Supreme has maintained its underground appeal thanks in part to an unorthodox business model.

ALIX BARASCH ASSISTANT PROFESSOR OF MARKETING, NYU STERN "Supreme has mastered the art of scarcity or the marketing of scarcity. They have a lot of different goods, but they release them in limited buckets so even the exact same product with different colors can feel scarce within the color that is being offered in that moment."

Customers are only allowed to buy one of each item. New items drop once a week - Thursdays at 11 am - at all their stores around the world. All of this creates a frenzy among fans. Barasch says social media has helped fuel the hype.

ALIX BARASCH ASSISTANT PROFESSOR OF MARKETING, NYU STERN "The photographic aspect of their brand. The fact that it is photogenic. That it conveys status and luxury and all of these things that are important for consumers anyway, this has just been amplified in the social media era."

Even moms like Shirley Rollins are now willing to wait in the cold for a chance to buy a piece of Supreme.

SHIRLEY ROLLINS SUPREME CUSTOMER "Well my son collects this stuff, wears it and is teaching my younger son about it so it's a lot of fun. So I figured, you know what, for Christmas, it's a good deed."

Now that's one cool mom. Karina Huber, CGTN, New York.