The Big Boom of Luxury Resale

Tv ads boasting new apps to sell and buy luxury goods, billboards and posters informing you of used luxury goods. You see it everywhere. Undoubtedly, the luxury resale market has grown a lot since the last decade. Owing to the fact that consumers are becoming increasingly fashion and luxury aware.

Luxury resale refers to the buying and selling of the pre-owned luxury goods. They range from clothes, shoes, handbags and accessories. In the past few years, the resale has been increasing rapidly. Moreover, the fear associated with the consumption of the second-hand goods has been disappearing. In contrast, pre-owned luxury is usually less expensive and has only some traces of wear-and-tear.

Furthermore, Buy, sell, repeat. These are the mindful youngsters. Also, it has also been suggested that the buyers of the used luxury are not necessarily poor. In fact, they are either value or fashion-conscious consumers.

And here is Krown Kouture helping you to understand this shift.

Why the big boom?

To start with, it’s the market that is changing how consumers shop. Secondary Behavior is something customers are moving towards. It ranges from reusing, to repairing and recycling. Henceforth, luxury in the resale market is one of the largest growing consumer segments.

Since the recession, consumers have become aware in resale. Also, because of access to online resources. Additionally, they know exactly what value means to them. It is easy to use resale websites. This attracts a lot of consumers. Also, the ones who might not be luxury shoppers. Thus, they drive you consumers. Nonetheless, the ones who can’t afford an original Chanel but can buy a used one to experience luxury.

Choice

Due to the availability of choices for luxury resale and buying, the boom is growing. There are websites as well as brick and mortar stores. One of the more important choices includes peer-to-peer market services. This is where the reseller deals directly with the buyer. Think eBay, Poshmark, Trades, RealReal, Rebag and Vestiaire. Moreover, peer-to-peer options are great when done right. Also, it is easy to navigate. Sellers can list for any price they deem fit, and commission can range from 10% to 20%. However, the level of consumer participation is a lot.

On the next level, there are stores. It’s a lot less of a time investment compared to peer-to-peer selling. For instance, Rebag, a platform exclusively for selling and buying pre-owned designer handbags. The platform offers a resale experience with a seller-first mindset that is all about time and transparency.

Brand Views

All signs point to the luxury resale continuously growing. And benefitting all parties involved. In particular, the brands and stores themselves are starting to realize the benefits of a liquid resale market for luxury goods. In reality, most sellers reinvest their resale earnings in purchases of new goods from the brands they love. The more liquidity, the more new goods they will buy.

As a matter of fact, many buyers of pre-owned luxury are also first-time buyers. The ones who get to experience brands for the first time. From that perspective, these resale services are a customer acquisition way for luxury brands. Also, an attraction for younger consumers.

The Numbers

Luxury resale has grown rapidly, and is more mainstream than ever. Uniquely, the global luxury resale market has increased at a significant rate during the years 2014-2017. And projections are made that the market would rise in the next four years i.e. 2018-2022 rapidly as well.

Recently, Rebag got $25 million funding. This brings the luxury handbag reseller’s total funding to $52 million. Not to mention, this will see the company expand upon its existing stores in New York and Los Angeles. In the same way, Luxury site, The RealReal, has consistently made headlines for its funding. In fact, a total of $288 million since its founding in 2011. As recently as last month, the San Francisco-based company was eyeing a potential IPO as well.