The rise of the luxury re-sale market

In line with the growing focus on sustainability and ethical consumption across the luxury category, we have seen a rise in the luxury resale market, driven predominantly by the more socially conscious Gen Z.

We’re seeing young audiences, adopting a buy it well and buy it once mindset, as they invest in fewer, higher quality items – not the high volume seasonal hauls that we’re everywhere in previous seasons.

President of The RealReal has said in their annual ‘Luxury Resale Report’ that consumers are ‘looking to invest in quality more, especially during a time of economic insecurity: For the second year in a row, we’re seeing both average order values and average sale prices rise across all generations, with increases up to 14%’

Resale opportunities:
As consumers try and buy more sustainably, resale offers an opportunity for luxury brands to connect with a new audience and gain opportunities to grow brand connection and perceptions. As pre-owned luxury items circulate through online and offline channels, brand awareness improves. Social media and influencer marketing further amplify this visibility, making luxury brands more accessible and desirable.

While resale represents an opportunity for brands to reach new audiences and evolve with shifting consumer values and expectations, it poses challenges around brand image control, perceived value and exclusivity. Brands can lose their grip on their image and product experience through the resale market if they don’t own the process, resulting in products sold in conditions or at price points that depart from market positioning.

Lets take a look at some examples:

Gucci:
Gucci could see their brand potentially suffering through the second-hand market, as their handbags halved, or more, in value on the re-sale market. To take control of this rising re-sale market, Gucci has partnered with Vestiaire whereby customers will be able to trade in pre-owned goods to gain store credit. Both the companies will authenticate and restore the items, and then these items will be resold. This collaboration addresses the biggest concerns in the luxury resale market: quality and authenticity. By providing authentication and restoration services, Gucci and Vestiaire Collective offer reassurance to customers, maintaining the brand’s integrity and exclusivity while making luxury items more accessible.

Rolex:
We’re seeing other luxury brands find their own ways to address the growing re-sale market for example, Rolex now has a certified pre-owned program emphasising its watches’ durability and timeless style. Rebag and Bloomingdale’s have partnered up to offer 2500 luxury vintage pieces online and in store, focusing on select high luxury pieces, while also enabling their customers can also resell personal items.

Exclusivity & accessibility:
As consumers become more environmentally and socially conscious, and as the luxury resale market shows no signs of slowing down, brands will need to continue to adapt and evolve to this landscape, finding ways to both improve their sustainability credentials and control the re-sale market to ensure their brand value is retained. The future of luxury lies in balancing exclusivity with accessibility while maintaining ethical and sustainable commitments.

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