There was a time when buying second-hand or what is now called pre-loved fashion was frowned upon. Today we are talking about luxury-burg town. Revered watch and clothing brands are sensing the allure of pre-loved glamour, and are embracing the trend not only to meet their sustainability goals but also as a new way of revenue generation.
Iconic watch brand Rolex, seen as a traditional luxury label, launched a certified pre-owned program in Europe in December 2022. Date of resale in the Rolex network. In its announcement, the company said that the watches would benefit from the exacting quality criteria inherent in all of its products, and added: “Because they are built to last, Rolex watches often live many lives.”
According to a recent report by Deloitte, the market for vintage watches is expected to grow to CHF 35 billion (CHF) and make up more than half of the primary market by 2030. This growth will be supported by brands launching new ones of their own. Pre-owned offerings, expansion of existing channels and consumers seeking discontinued watches. This market will be driven by young consumers who prefer to shop online and have a penchant for pre-owned luxury due to price sensitivity and stability.
A model wears a Creation part of the Bottega Veneta Spring/Summer 2009 fashion collection presented in Milan, Italy Tuesday, September 23, 2008. (AP Photo/Alberto Pelashier) | Photo Credit: Alberto Pelashier
The booming pre-luxury market is also attracting well-known luxury fashion brands. Coach has launched a (re)loved program, in which owners can bring in their bags for refurbishing, reimagining, and recycling. The luxury bag maker also offers store credit at select stores that don’t want to sell or restock their pre-loved bags. According to the brand, buying a Coach(Re)loved product can reduce an item’s carbon footprint by up to 76%, compared to buying a new one.
second hand to win
According to a Bain & Company report, the second-hand luxury market is set to grow to €33 billion in 2021, up 65% from 2017. Extending the lifespan of luxury products is a powerful way for brands and fashion platforms to show their commitment to sustainability. , says the report.
Second-hand luxury retail also provides brands with a rich, data-driven understanding of young consumer behavior. “There is both a commercial and an environmental rationale for getting involved. The value proposition for retailers is to increase customer retention and generate a new source of cash flow,” says Felix Winkler, CCO, Refluent, a re-commerce platform which is used by Balenciaga and Harvey Nichols for their resale programs.
Balenciaga, which is set to launch its first store in India in 2023, is expanding its resale program across Europe, the US and Singapore. Through this program, owners can drop off their pre-loved Balenciaga products at select stores or via scheduled pick-up. Sellers are given the option of accepting cash or redeeming store credit that is worth more than the cash offered.
A Bag by Chanel | Photo Credit: Special Arrangement
“The main challenges for a brand to start the resell journey are building the technical infrastructure, such as the user interface of the customer journey, implementing reverse logistics, etc. We take care of everything from end to end. We provide technology tools as well as operational support including customer support,” explains Felix.
As luxury brands enter the pre-loved fashion market with their direct-to-consumer programs, how will this affect multi-brand re-commerce aggregators like The Luxury Closet, Farfetch, or Poshmark, which offer self-certification and pre-owned fashion? Selling. Loved fashion long before luxury brands straightaway entered the secondhand market? “We are excited that pre-loved fashion is becoming more popular – it is an indicator that consumers are changing their attitudes and recognizing the social, environmental and financial benefits of pre-loved shopping”, Anuradha Balasubramaniam, India Markets says the general manager of Poshmark, a US-based re-commerce aggregator.
“When the resale program is brand specific, it is going to cater only to customers of that particular brand. For aggregators like us, we offer a treasure hunt. You might just find the bag you bought five years ago. been looking for, but couldn’t get your hands on,” says Maya Azzi, chief brand officer at The Luxury Closet, a Dubai-based luxury re-commerce company that caters to the India market. She adds, “Certification For, we do not work with brands directly, but we have an expert team who always keep track of the latest launches by various brands and factors that help us authenticate. We don’t compromise on authenticity because that’s what is our biggest pillar.
White Studded Louboutins | Photo Credit: Special Arrangement
future proof
Forecasts for the second-hand sector suggest that it will grow to over $60 billion by 2025. Directly or indirectly, luxury brands are increasingly investing in the re-sale market. Last year, Kering, the parent company of Gucci, Bottega Veneta and Balenciaga, invested €178 million, along with another investor, in the pre-loved multi-brand e-tailer, Vestiaire Collective, which saw a year-over-year jump in transaction volume. -The year saw an increase of over 100%. Year.
India is also witnessing a proliferation of domestic online stores selling and buying second hand luxury fashion. Confidential Couture is one such aggregator, launched by Anvita Mehra in 2014 to make popular luxury brands like Gucci, YSL and Christian Dior more accessible. “The resale market in India is dynamic and tough as compared to international markets. The US and European markets are particularly strong with the presence of well-established e-commerce websites,” she points out. But India’s market is slowly shedding the stigma of second-hand product showing up. Most online Like businesses, second-hand luxury aggregators also benefited during the pandemic lockdown as travel opportunities for luxury consumers were limited. “Growth has continued post lockdown. We expanded our reach to Tier 2, Tier 3 cities And opened an offline store,” confirms Anvita.
Already loved by popular Indian designers, the fashion re-commerce is also catching up with stores. “Indian designers most listed on Poshmark include Ritu Kumar, Sabyasachi and Manish Malhotra,” explains Anuradha. While an increasing number of international luxury brands are creating a new revenue stream with the re-selling trend, we are yet to see Indian designers making notable moves to follow suit.