The second-hand luxury resale industry is set to represent nearly 10 per cent of the entire luxury market by 2021, as the pre-owned boom continues to cannibalise primary retailers.
However, resale platforms should be seen as an opportunity rather than a threat to luxury brands, according to new research from Boston Consulting Group (BCG) and resale platform Vestiaire Collective.
Around 71 per cent of second-hand buyers are those without access to the primary luxury market, allowing luxury brands to significantly widen their audience and “recruit” potential customers, who are likely to purchase at full price as they get older and wealthier.
Of those surveyed 62 per cent said that they bought a brand they like for the first time second-hand, with 57 per cent of those stating they would definitely buy or would consider buying the same brand first-hand.
Furthermore, those selling luxury items are typically first-hand buyers who can recoup some of their money and reinvest in their favourite brands, with 32 per cent of those surveyed saying they were selling clothes in order to purchase new first-hand goods.
Seventy per cent of sellers on the Vestiaire Collective resale platform rarely purchase second-hand, with a further 44 per cent of sellers stating they purchase more first hand items thanks to the resale market.
“The second-hand market prolongs the life of luxury products,” BCG’s managing director Olivier Abtan said.
“Most of what is sold on luxury second-hand platforms is of high quality, with 62% of the clothes either unworn or hardly worn. Brands wishing to be more eco-friendly benefit from this circular luxury economy.”