Surging demand for secondhand luxury goods is one of the key trends emerging from our 2021 Luxury Goods Worldwide Market Study. The growth of the market to €33 billion during the year wasn’t just led by demand. It also reflected an increased supply of goods from an expanding arena of players in the segment.
Extending the lifetime of luxury products is a powerful way for brands, fashion platforms, and investors to show their commitment to sustainability. Moreover, secondhand sales offer an additional distribution channel that’s gaining share within the larger luxury ecosystem. The network-based nature of secondhand luxury retail (and its capacity to give brands a richer, data-led understanding of young consumers’ behavior) is another plus.
Yet there are a few points still to solve: creating a compelling value proposition, cracking operational complexity (e.g., authentication, start-up stock, and margins), defining a winning branding (or rebranding) strategy, maximizing customer outreach, and ensuring that the resold items are valued and priced properly.
Our 2021 Luxury Goods Worldwide Market Study shows how brands can build on their historic rebound.