DUBLIN, Oct. 2, 2023 /PRNewswire/ — The “Global Luxury Resale Market (by Product, Distribution Channel, Gender & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)” report has been added to ResearchAndMarkets.com’s offering.
The global luxury resale market has experienced significant growth in recent years, reaching an estimated value of US$39.23 billion in 2023.
This robust growth is attributed to changing consumer attitudes, an increasing middle-class population, and the rising number of internet users. Luxury resale, which involves the buying and selling of pre-owned luxury goods, has shed its stigma and is gaining acceptance worldwide.
Key Market Segments
The luxury resale market is segmented by product type, distribution channel, and gender:
- Product Type: The market includes three main segments: apparel luxury, hard luxury, and others. Apparel luxury resale holds the largest market share and is the fastest-growing segment due to growing consumer acceptance of second-hand apparel.
- Distribution Channel: Luxury resale can be conducted through offline and online channels. Online resale is the fastest-growing category, driven by the influence of digitalization on consumers’ luxury resale choices.
- Gender: The market is segmented by gender into males and females. The male segment is experiencing significant growth, driven by brands selling second-hand luxury apparel and watches at discounted prices on e-commerce platforms.
The global market is divided into four major regions: Europe, North America, China, and the Rest of the World. Europe has the largest share of the luxury resale market due to the presence of numerous luxury retail brands. China’s hard luxury resale market is an emerging region with a high compound annual growth rate (CAGR) driven by demand for pre-owned hard luxury items such as watches.
Key Factors Driving Growth
- Growing Millennial Population: The increasing number of millennials is driving interest in luxury resale. Younger consumers are more open to purchasing pre-owned luxury goods, contributing to market growth.
- Increasing Middle-Class Population and Spending: The expanding middle-class population worldwide, with higher disposable income, is driving demand for luxury goods, both new and pre-owned.
- Escalating Internet Users: The growing number of internet users is a significant driver for luxury resale. The internet facilitates the buying and selling of pre-owned luxury products, making them more accessible to consumers.
Challenges and Trends
- Lack of Trust in Buying Second-hand Luxury: Many consumers lack trust in buying second-hand luxury goods due to concerns about authenticity and longevity. Some luxury resale platforms also face issues with counterfeit products.
- E-commerce Fraud: The luxury resale market, like other e-commerce sectors, faces challenges related to fraud and counterfeit products, which can erode consumer trust.
- Surge in Luxury Goods E-commerce Sales: Online sales of luxury goods are on the rise, driven by better pricing, a wide variety of options, discounts, and convenient payment methods. This trend is positively impacting the luxury resale market.
- Increasing Thrifters’ Demand: The demand for pre-owned luxury goods among thrifters is increasing. Consumers are looking for sustainable and eco-friendly shopping options, making luxury resale appealing.
- Popularity of Second-hand Soft Luxury: Soft luxury items, such as apparel and accessories, are gaining popularity in the luxury resale market, with consumers actively seeking second-hand options.
- Involvement of Product Authentications Techniques: Authentication processes are becoming more critical in the luxury resale market to address concerns about counterfeit products.
Impact of COVID-19
The COVID-19 pandemic had mixed effects on the luxury resale market. While there was a slight decline in demand during the pandemic, it also created awareness about eco-friendly practices and the usage of pre-owned luxury products. As the market recovers, it is expected to grow at a faster rate, with luxury brands partnering with resale platforms and offering rebates for exchanging old luxury items for new ones.
- Compagnie Financiere Richemont SA (YOOX Net-a-Porter Group)
- Everlane Inc.
- Farfetch Ltd.
- Kynetic (Rue La La)
- OfferUp, Inc. (Letgo Inc.)
- Poshmark Inc.
- TechStyle Fashion Group (JustFab Inc.)
- The RealReal, Inc.
- ThredUp, Inc.
- Trendly, Inc. (Rebag)
- Vestiaire Collective (Tradesy)
For more information about this report visit https://www.researchandmarkets.com/r/vglqov
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Originally published at https://www.prnewswire.com/news-releases/rapid-growth-in-luxury-resale-market-driven-by-online-sales-and-emerging-middle-class-consumers-301944268.html
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