Luxury at its (2nd)best
2019 saw two events that seem contradictory:
1 - We buy too much, and too much doesn’t sell.
2 - The biggest news story revealed that Burberry had burnt more than $34.6m worth of unsold product in June 2018 — a revelation that shamed the company into ending the practice.
Now luxury in fashion has always been a big deal. The internal feeling of fulfillment one feels from within when able to afford a luxury piece is nothing less than an endorphin kick.
The growing online resale sites have completely changed the luxury 2nd hand market. It is growing 4 times faster than the primary luxury market, at 12% per year versus 3%. High-end resale already represents a $24 bn market today.
Why you may ask?
The arrival of Instagram, the end of ownership and the increased importance to sustainability has driven a fundamental shift in the consumption habits of Gen-Zs and millennials. Consumers are turning to the resale market for something cheaper and greener. The circular economy is another driver of the luxury resale growth, fueled, in by the younger affluent generations and their desire for sustainability. We know that most items are worn less than 10 times before they are resold and luxury fashion is ideal for resale for its quality, durability and its timeless nature.
Celebrities are making it cool too. From Kim Kardashian to Adwoa Aboah to the Duchess of Sussex, they all have been seen loving a good vintage moment or two. It not only is cool (both for them & the environment), but also adds value to their outfits when they don’t have a fast-fashion brand tagged on their outfit post on Instagram.
All in all, the re-sale market is worth paying attention to and its prospect is bright. Enough said.