When it comes to luxury handbags, few other topics are as buzzy or talked about as the secondary market. In the last five years alone, the market has grown exponentially, with a growth rate five times faster than the primary luxury market. While there is a lot of money to be made for both brands and consumers, the market is constantly changing and evolving. Still, luxury resale platforms like The RealReal release annual or bi-annual reports to track the ever-changing trends within the secondary market. Its 2023 Luxury Resale Report was released yesterday, and the results, quite honestly, are not all that surprising.
Consumers Double Down on Luxury
Despite ever-growing fears of a looming recession and the economic impacts of inflation, consumers continue to invest in luxury. What’s changed, however, is how consumers are shopping. Analyzing the data of The RealReal’s 33.6 million+ members found significant shifts in the behaviors of resale shoppers and a redefinition of what luxury means.
The demand for fair-condition luxury handbags continues to increase, which can likely be correlated to the stealth wealth, old-money trend, which champions the worn-in look of classic handbags like the Hermès Birkin and Kelly.
“Our customers are still buying investment pieces….they’re shopping for fair condition pieces to acquire the most sought after styles, and they’re seeking comfort in knowing that if they buy well, they will likely get a great return on their
investment.” Rati Sahi Levesque, President and COO
Trends Drive Best-Selling Brands
Whether or not you want to hear it, the quiet luxury trend continues to drive demand for brands like Bottega Veneta and Celine, which have joined the ranks of TRR’s top ten most wanted brands. Gucci continues to drive consumer demand, and data reveals that it is the #1 brand across all demographics. This is likely driven by nostalgia and archival revival trends, with vintage Gucci styles like the Diana and the Jackie remaining highly sought after. Still, the Chanel Flap Bag remains the most-searched style across various Key U.S. markets.