Second hand fascinates luxury. And it is not a coincidence. The business is worth about 40 billion dollars, and promises to grow. Many brands have made the decision to join, while the big names are already investing in it. A phenomenon that ended up in the spotlight of LVMH. Why does second hand work so well? The desire for sustainability, connected to the opportunity to extend the life of products. The opportunity to spend less, as well as to buy unobtainable or off-market pieces. These are the incentives that push consumers, especially young people, to turn to resale market.
How much is the market worth
The estimate is made by Boston Consulting Group and Vestiaire Collective in “The consumers behind fashion’s growing second hand market”. The resale sector is currently worth between 30 and 40 billion dollars. And in the next five years, it will increase its value with a compound annual growth rate (CAGR) between 15% and 20%. From the study, as reported by MF Fashion, it emerges that even luxury brands can take advantage of this market. 62% of the 7,000 people interviewed (residing in six different states) said they would be more willing to buy brands active in the second-hand market. This would allow brands not only the acquisition of a new customer target, but also the possibility of studying a loyalty strategy (new-used).
The big names are investing in it
Big names in fashion are focusing on reselling. Like Gucci which, as well as Burberry, has signed an agreement with The RealReal, an e-tailer specialising in the sale of luxury goods. Marco Bizzarri, Gucci’s CEO, told Vogue Business that the Italian brand was also considering a wide offer in its stores. According to Vogue Business, LVMH is closely and attentively observing the evolution of the situation too. For LVMH, environmental development director Hélène Valade, a risk to be eliminated is that of counterfeiting.
Image from vestiairecollective.com