The luxury secondhand market is growing four times faster than the primary luxury market, and up until recently, most luxury brands had yet to capitalize on the booming secondhand market. However the latest news from Reuters proves that’s all continuing to change.
While its subsidiary Gucci joined forces with the RealReal last October, parent company Kering just announced its investment in resale platform Vestiaire Collective. Though the concerns that luxury groups have over the secondary market (diluted brand images, weakened control over distribution) are valid, there are benefits, one of the main ones being a better grip on the selling of counterfeit goods.
As many of us aim to shop more sustainably and thoughtfully, finding irresistible deals in the meantime, the resale market has grown, and it is estimated that the proportion of pre-owned pieces in closets will grow from 21% this year to 27% in 2023. Unsurprisingly, Vestiaire Collective reported double its transaction volume year over year.
Meanwhile Kering, a French luxury group that houses other brands in addition to Gucci like Saint Laurent, Balenciaga, Bottega Veneta and more, has invested in Vestiaire Collective by purchasing a 5% stake in the company. This latest news proves that the pre-loved market boom hasn’t yet reached its peak, which is great news for consumers with a heightened focus on sustainability and those looking to score a good deal.
How do you feel about luxury fashion groups joining the resale market?
I frequently browse and at times sell to Fashionphile (FP). It seems that since NM partnered with FP the prices are astronomical. For instance, new Birkin’s historically were listed for about $15,000 and now they are closer to $20,000. Also, they sell LV and Chanel bags for hundreds more even though the bag is available to purchase online or in retail. They also mostly offer less for buyout vs. credit which offers 10% more. The advantages are they ship and return free and their payout is very fast so I guess there’s a balance? IDK.
Same thing with Farfetch after Chanel purchased I think 10% stake?? They are now charging not only sales tax but USE tax? Today I was going to purchase 5 things, 3 coming from UK (where the price is the same MSRP as in the USA but says “all import duties included” in the price. Skip to checkout, where there’s a WHOPPING 12% “tax” on the total! Not only is the tax not broken down at all, it’s double what the sales tax in my area is. my personal shopper said, oh we are charging “use tax” now (which when a vendor charges tax it’s just sales tax, it’s up to an individual to file use tax). Also, well-worn and bad color birkins are going for 30k?? A picotin for 7K, used? Chanel jumbos for 12k? I called CS and asked that they delete my account entirely. PS said, oh, we can refund you the tax if you want! Which told me everything I needed to know. So yeah, watch out. Companies buying a stake in “sustainability” I think is about anything but….
Wow thank you for the heads up I will definitely be taking my business elsewhere how ridiculous
Great remark! Green washing has officially reached luxury firms.
I wonder though if the second hand price increases won’t backfire at Chanel in particular? If those prices are too close to a new bag (or more), that could harm the resale market and therefore potentially lower the “investment” value? Unless they really limit their supply… we’ll see!
I have noticed the same thing on FP so no longer even bother looking at it. They do have a massive selection but the prices are ridiculous. I’ve been buying used bags for years now and not that long ago, a bag in ‘good condition’ would be at least half the price of new. Now you are lucky to get a couple of hundred dollars off retail. It seems that even the 2nd hand market is making used bags harder to buy ?
Same. I no longer bother looking at Fashionphile.
I don’t think it’s a good idea. It’s just a way to control prices and keep them high.