Second Chances
Navigating the Growing World of Pre-Owned Luxury
IN RECENT YEARS, THE SECOND-HAND LUXURY MARKET HAS TRANSFORMED FROM A NICHE SEGMENT INTO A BOOMING INDUSTRY, WITH THE LUXURY RESALE MARKET PROJECTED TO REACH $64 BILLION BY 2025. DRIVEN BY SUSTAINABILITY AND THE THRILL OF DISCOVERY, THE DEMAND FOR PRE-OWNED LUXURY GOODS IS BOOMING, PROMPTING LUXURY BRANDS TO RETHINK THEIR APPROACH TO THIS UNREGULATED RESALE LANDSCAPE.
By Colleen Guilfoile Richmond
THE RISE OF PRE-OWNED LUXURY
Several factors contribute to the rising clamor for pre-loved items. A significant driver is the younger generation, particu- larly Millennials and Gen Z, who prioritize sustainability and ethical consumption. As fashion production accounts for 10% of global carbon emissions, consumers are increasingly aware of their environmental impact. A 2021 Statista report revealed that 42% of Millennials and Gen Z are likely to shop sec- ond-hand. Brands like Vinted have reported that their members helped avoid 679 kilotonnes of CO2 emissions in 2023 by choosing pre-loved items.
The digital revolution has made luxury second-hand shop- ping more accessible. Platforms like Amazon, which launched Luxury Stores in 2020 in the US, and eBay, extending its authenticity guarantee to handbags over $700.00, have joined established players like Vestiaire Collective and The RealReal. These platforms often authenticate products, reassuring buyers about the legitimacy of their purchases, which has further propelled the market.
For many consumers, second-hand shopping is not just about sustainability; it's also about the excitement of uncov- ering unique, vintage pieces. As Cécile Wickmann, senior director of luxury at Vinted, notes, luxury resale provides access to sold-out collaborations and limited editions. The majority of pre-owned luxury items sold are watches and jewelry, indicating a preference for out-of-circulation stock. Verification remains crucial in this market to ensure authenticity. eBay employs experts to inspect eligible items, while Vestiaire Collective conducts both digital and physical authentication for high-value goods. Platforms like By Rotation implement stringent verification processes, fostering trust among consumers.
Historically, luxury brands have viewed the resale market with suspicion, perceiving it as a threat to their exclusivity. However, many are now recognizing it as an opportunity. Brands like Burberry and Stella McCartney are collaborating with resale platforms to promote ethical consumption while controlling the resale of their products. Vestiaire Collective's "brand approved" initiative and resale partnerships enable brands to authenticate their items and facilitate resale, helping maintain their long-term value.
Additionally, luxury brands are increasingly investing in or acquiring second-hand platforms. Farfetch's acquisition of Luxclusif and Richemont's purchase of Watchfinder are notable examples. Many brands are also creating pre-owned programs, such as Gucci Vintage and Rolex's certified pre- owned offerings, to verify and trade in vintage pieces.
Ultimately, the luxury industry must engage with the resale market to expand its reach and promote mindful consumer habits. As the landscape evolves, those brands that adapt- whether by launching their own resale platforms or collabo- rating with established marketplaces-will be well-positioned to thrive. The future of luxury lies in embracing sustainability and second-hand shopping, where every item carries its own legacy, and every purchase contributes to a more responsible fashion ecosystem.
