Covid-19 has tremendously impacted all types of businesses, especially luxury brands, which have plunged dramatically due to the quarantine. Used to be hidden behind the curtains, secondhand fashion uncovered new possibilities, transforming and raising customers’ standards and expectations. While the rest of the world was looking for a vaccine, the luxury industry was on a mission to adapt and hold onto its position in the fashion chain.
Image Source: Lets Lux Now
Should Brands Interact In This Sector?
The pandemic played a crucial role in increasing the popularity of online shops such as Vestiaire Collective and The RealReal, web pages that resell authentic luxury items. Although it might seem like a threat, the fast-growing luxury resale market is one that manufacturers actually stand to benefit immensely from supporting and participating in. Many producers once saw this sector as an unappealing niche, but later realized that it had opened new doors for them through all web platforms and now is allowing the luxury companies to enhance their reputation and increase their client base.
Evidently, brands that move forward and actively engage with the secondhand market can gain a variety of previously unanticipated benefits, including interaction with their customers in unusual ways. However, the possible generated revenue is what completely wins over the indecisiveness of brands.
According to Statista, the global market for secondhand luxury goods made just under $5 billion in 2021 and is expected to nearly triple in size by 2027, which is estimated to reach $14.7 billion. And It’s hard to turn a blind eye to those numbers.
Photo Credit: Caitlin Ochs
Why Do Modern Fashion Shoppers Prefer Resales?
Affordability at secondhand shops was always a driving part for customers who coveted purchasing designer goods. Yet the surge in the resale market could be majorly attributed to a significant change in consumer behavior.
People started shopping more sustainably as climate change became an undeniable reality. This circular fashion pushes manufacturers to cease their excessive amounts of clothing production, which reduces the world's carbon emissions, water usage, and energy demand.
However, buyer environmental awareness isn’t the only reason for the thriving of the resale sector, but a huge interest in purchasing rare and iconic items. Collectors who hunt down vintage bags and clothing are willing to pay double, seeing the products as valuable assets. Gaining so many advantages simultaneously, the public unquestionably finds this area lucrative.
Photo Credit: Vestiaire Collective
What Luxury Brands Can Gain From It
Fashion houses can benefit greatly from engaging and supporting the resale markets. By collaborating with the secondhand industry and their customers, they will have access to data on shoppers' habits, which will enable them to better identify key trends, including valuable brand insight.
Some companies, like By Far, are already actively participating in this movement and took a bold step in teaming up with the platform Vestiaire Collective. By Far introduced their upcycled lineup of 6 Mini Rachel shoulder baguette bags, alongside their archive sale, which resulted in attracting new customers.
On the other hand, Kering offered to buy back its items directly from customers and then resell them, which helps them foresee future trends. Assuredly, any continued involvement helps to convert the public into the luxury market's loyal clients in the long run. Although nobody can guarantee that this relationship is risk-free, the prospected opportunities are way too appealing to resist.
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