Secondhand Luxury Goods: Exploring Market Trends, Opportunities, and Impact of Changing Consumer Behavior

What are the Current Market Trends?

The resale market for upscale goods is on an uptrend, powered largely by digital platforms that provide an avenue for consumers to buy and sell high-end items. It’s an evolutionary step in the consumer goods industry, largely reflective of a society increasingly focused on sustainability and economic pragmatism. Notably, it allows consumers with high-end tastes access to coveted brands at a fraction of the original cost, while offering previous owners a chance to recuperate some value from their goods.

What Opportunities does it Present?

This market sector opens up plentiful business corridors for both new entrants and traditional luxury manufacturers. Online vendors such as The RealReal and Vestiaire Collective operate successful business models solely based on the resale of luxury items. However, legacy brands can also leverage this trend, by facilitating resale platforms on their websites or incorporating resale items into their product offering, thereby tapping into the vital sustainability trend that dominates the present consumer landscape.

How is Consumer Behavior Evolving?

Underlying this shift in market dynamics is a change in consumer behavior. Many no longer view luxury consumables as one-time purchases, but rather investable commodities. Additionally, the rise in environmental consciousness has propelled the secondhand luxury market as it offers a more sustainable option for fashion-forward consumers. Increased digital literacy, especially among millennials, has also made the proposition of online luxury reselling more innovate and accessible than ever.