DUBLIN, Oct. 19, 2023 /PRNewswire/ –The “Global Secondhand Luxury Market: Analysis By Product Type, By Distribution Channel, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2028” report has been added to ResearchAndMarkets.com’s offering.
The global secondhand luxury market is on an upward trajectory, with a market value of US$31.12 billion in 2022, and is projected to reach a staggering US$58.30 billion by 2028. This remarkable growth is driven by changing consumer preferences, heightened awareness of fast fashion’s environmental impact, and an increasing demand for pre-owned luxury goods.
The secondhand luxury market encompasses the buying and selling of pre-owned designer items, either through consignment stores or online resale platforms, where consumers can find high-end products at discounted prices. Young consumers are at the forefront of this shift, redefining traditional luxury shopping methods. Factors contributing to this surge in demand include the rising wealth of high-net-worth individuals (HNWIs), the prominence of fast fashion, and an increased focus on sustainability in the fashion industry.
Several key factors are propelling the growth of the global secondhand luxury market:
- Changing Buying Habits: A shift away from conventional shopping methods, especially in the luxury fashion sector, as consumers seek out more sustainable options.
- Urbanization and High-End Fashion: The urbanized population’s preference for high-end fashion accessories and the growing popularity of limited capsule collections.
- Online Resale Sector: The rapid expansion of the e-commerce resale sector and online fashion resale marketplaces.
Furthermore, the stigma associated with using pre-owned products is diminishing, with millennials and Gen Z leading the charge for affordable pre-owned luxury goods. The market is also benefiting from an increasing number of online resale platforms and luxury brands forming strategic partnerships to enhance the reputation of secondhand products. For example, The RealReal’s partnership with Gucci, announced on October 05, 2020, paved the way for an online shop featuring pre-loved Gucci items, promoting circularity in luxury fashion.
The secondhand luxury market is expected to maintain a Compound Annual Growth Rate (CAGR) of approximately 11% during the forecasted period of 2023-2028.
Market Segmentation Analysis:
By Product Type:
- Handbags and Other Luxury Leather Goods
Handbags and other luxury leather goods represent both the largest and fastest-growing segment due to their high quality, craftsmanship, and durability, especially from prestigious brands. The segment benefits from increasing demand for affordable high-end leather products and the rapid expansion of e-commerce and online platforms.
By Distribution Channel:
The offline segment provides a tangible and sensory experience that appeals to buyers looking to analyze the quality and craftsmanship of secondhand products. Online, on the other hand, is the fastest-growing segment, driven by digitalization, wider product ranges, and the convenience offered by online platforms.
- North America
- Asia Pacific
- Rest of the World
Europe leads the global secondhand luxury market, boasting a rich heritage in luxury fashion and a growing awareness of the economic advantages of reselling goods. France holds a dominant position within the European market. Asia Pacific is the fastest-growing region, fueled by a large consumer base, social media influencers, evolving consumer attitudes toward sustainability, and a rising trend of purchasing cost-effective pre-owned luxury goods.
- Increasing wealth and the number of high-net-worth individuals (HNWIs)
- Rising demand among millennials and Gen Z
- Rapid urbanization
- Expanding online resale sector
- Increased access to rare and vintage items
- Presence of counterfeit products
- Reduced market share and revenue loss for genuine sellers
- Fall in consumer confidence and trust
- Damage to brand value and differentiation
- Integration of AI and data analytics
- Growing social media penetration
- Increasing acceptance of pre-owned goods
- Luxury brands entering the secondhand market
- Focus on sustainability and environment
- Rise in digital dressing
Consumers are increasingly conscious of their buying habits, aligning with sustainable consumption and the principles of a circular economy. As awareness of the ethical implications of purchases grows, the secondhand luxury market is poised for continued rapid growth.
The US luxury resale market is undergoing transformation, shifting from small local boutiques to online platforms. Key players in the global secondhand luxury market include:
- The RealReal, Inc.
- ThredUp, Inc.
- Farfetch Limited
- Alibaba Group (Idle Fish)
- Yoogi’s Closet, Inc.
- Vestiaire Collective
- The Luxury Closet
- Luxepolis Retail Services Pvt Ltd. (Luxepolis.com)
- Fashionphile Group, LLC
These companies are actively pursuing acquisitions, partnerships, and new product development to enhance their capabilities and expand their market share in the secondhand luxury market. Notably, they are collaborating with online market players and resale companies to demonstrate their commitment to sustainability and the circular economy. For instance, The RealReal, Inc., recently announced a Circular Partnership with Jimmy Choo, promoting the consignment of pre-loved luxury items to drive awareness and adoption of the circular economy.
For more information about this report visit https://www.researchandmarkets.com/r/sktjep
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Originally published at https://www.prnewswire.com/news-releases/luxury-resale-market-evolution-digital-transformation-and-sustainability-initiatives-propel-key-players-to-new-heights-301961953.html
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