by Azra Tuco
WHILE SECOND-HAND SHOPPING HAS A LONG HISTORY OF STIGMATIZATION, THE INCREASING DEMAND FOR PRE-LOVED, RARE, AND EXCLUSIVE ITEMS ILLUSTRATES NEW DESIRES AND BUYING TRENDS.
Resale represents a meaningful step forward in unlocking circularity by giving pre-loved items a second life, and a growing number of luxury retailers are entering the second-hand market to meet conscious customers’ demands for sustainable fashion. By providing a platform where consumers can mix vintage finds with the latest collections, retailers are looking to join the resale movement.
A McKinsey report from 2021 observes that the market for luxury resale, predominantly oriented to women’s fashion, is thriving, especially in the EU, US, and China. Several factors contributed, including the pandemic, digitization, and the “generational headwind,” where younger consumers are more inclined to buy pre-owned goods. While reselling remains largely offline, online platforms are growing exponentially. A projected 20–30% annual growth is expected from specialized digital platforms that trade pre-used luxury goods.
Whether referred to as “pre-loved,” “pre-owned,” “vintage,” or simply “second-hand,” this growing category is available in both digital and physical forms. In 2019, Selfridges joined forces with Vestiaire Collective, a leading pre-owned fashion marketplace, to create a permanent space for “pre-loved” in-store and online fashions. A partnership between luxury online platform Farfetch and on-demand donation service Thrift+ was announced the same year to promote circular fashion. In 2021, Net-a-Porter teamed up with leading resale technology provider Reflaunt to empower customers to resell their designer items. Mr Porter and The Outnet followed suit in early 2022. The trend is also visible in Sweden, where luxury multi-brand store Nathalie Schuterman launched an online “pre-loved” category that allows customers to resell and purchase pre-used luxury goods. Luxury brands have also started exploring the resale market in recent years. By the end of 2021, Burberry and Gucci had forged partnerships with The RealReal; Mulberry had introduced its in-house resale program; and Balenciaga had partnered with Reflaunt.
Reselling allows brands and retailers to communicate a “buy less, use more” mentality that resonates with conscious consumers. It has also been driven by pressure to reduce fashion’s environmental impact and to participate in the retail opportunities it presents. As a growing number of luxury retailers and brands seek to create circular business models that provide value for both their customers and the environment, barriers to entry are being lowered. Amidst a changing fashion landscape where retailers, brands, and consumers are rethinking how fashion can be consumed, resale continues to dispel stigmas and promote more environmentally friendly shopping practices.
PLEASE READ THESE TERMS AND CONDITIONS CAREFULLY