The luxury resale market is growing, with experts predicting the industry’s annual growth rate to be 10–15% over the next decade. The growth of the luxury resale market is a result of the success of specialized digital trading platforms and changes in consumer behavior. In this article, we would like to inform you about the luxury resale market and its evolution.
What is the luxury resale market?
The luxury resale market refers to the resale of pre-owned but still valuable luxury goods.
Luxury goods are high-value but non-essential goods whose main purpose is to bring more enjoyment to the owner and are often expensive, mainly available only to people with high incomes and abilities. purchase and use finance. Therefore, reselling luxury goods is very popular and participates in creating a large market.
Luxury Resale has both online and offline platforms to commercialize second-hand. This type of sale includes the resale of clothing, antiques, luxury art, and others.
The rise of the luxury secondary market
In general, 75–80% of extravagance shoppers are still new-product buyers. However, customer behaviors and concerns are changing, indicating numerous pre-owned items. In the watch market, for illustration, by 2025 we expect that resale will include a full third of the entire market. These designs have been quickened by the pandemic, by digitization, and by the so-called “generational headwind”: more youthful buyers (Generation Z and Millennials) are altogether more willing than Generation X and more seasoned to buy pre-owned products.
Around half the market currently comprises jewelry and watches, with handbags and shoes comprising just over a third; it is primarily situated towards women’s fashion. The market is arranged generally in the European Union, taken after by the US. Ten percent lies in China. Whereas the exchange is still to a great extent offline, online stages are developing exceptionally much speedier. Undoubtedly, specialized computerized stages for exchanging pre-used merchandise, with a 25–30 percent market share, are driving much of the sector’s development, with an anticipated extension of 20–30 percent per annum.
The global luxury resale market is expected to reach $68.53 billion by 2026.
The impact of luxury resale on the retail landscape
Luxury resale is influencing and having significant impacts on the retail landscape. Resale companies, along with a number of fashion brands have proven that a thriving luxury resale market is better for the retail industry because it keeps products circulating in the economy longer. than. Especially for the environment, extending the life of a product by 9 months will reduce carbon emissions by 20% to 30%. However, the resale of these luxury products will encourage more consumption. Resellers indicate that they are selling so they can buy new products.
The luxury resale market is growing and diversified in terms of both business types and products. Businesses can fully expect the growth of this industry in the future. Contact us to learn more about this market.