Recently there has been a real worldwide boom of buying pre-owned goods - the idea which is in line with the philosophy of sustainability and alternative fashion consumption. All luxury brands express their vision of an ecologically friendly and smart approach to everyday life.
For example, do you know that it takes 1,800 gallons of water to produce only one pair of jeans? That’s the answer to the rapid rise of pre-owned luxury and this trend is only going to grow.
What Is Pre-Owned Luxury?
Pre-owned luxury means the whole market of secondhand, vintage, and neo-vintage products. Selling and re-selling things mean giving them a second life. It is so easy: if you no longer like your luxury Channel bag, you can easily sell it to someone who wants it.
Such a circulation of luxury things represents the very important idea of smart consumption and sustainability. Of course, the risk of buying a well-made fake is rather high, that’s why it is important to be sure in the seller or at least to use reliable authentication services. We, at Bagaholic, provide authentication services of Louis Vuitton, Gucci, and Dior items.
On the other hand, the pre-owned market is also interesting for brands, because they can produce fewer products and make people literary “hunt” for the brand pearls, generating consumer demand.
Current Pre-Owned Luxury Market
The newly formed pre-owned luxury market varies from country to country. The idea of such product circulation comes to different cultures in different times and is perceived from different angles. Let’s have a look at the peculiarities in three big regions.
European Pre-Owned Luxury Market
Though a typical European consumer still prefers to buy a brand-new thing rather than a second-hand one, the European mindset is slowly turning to the direction of smart consumption. New generations are already more open to use vintage things and contribute to product circulation. Of course, as Europe is made up of totally different nations, people from Northern Europe, for example, accept such ideas faster compared to their neighbors from Eastern Europe.
European pre-owned luxury market counts numerous luxury brands such as Louis Vuitton, Channel, Gucci, Rolex, Hermès and it attracts millions of people hunting for them.
The perspectives of EU pre-owned market are really strong. It is expected to reach $15,738.6 million by the end of 2024. In addition, the European pre-owned luxury goods market value is estimated to grow at least 13.0% by 2024 as compared to previous years.
As experts from Bain & Company outline in their annual luxury report, the secondhand market for luxury goods rose to €22 billion in 2018-2019, propelled by strong growth in Europe, which makes up more than half of this market, as well as by growth among highly specialized online platforms. And it is not surprising, e-commerce and online shopping is currently booming in the EU. Watches and jewelry are the primary categories in the secondhand market, accounting for 80% of all purchases.
American Pre-Owned Luxury Market
America was among the first countries to start behaving in a more sustainable way when it comes to buying new things. It is better to save money and buy one good product than a dozen of low-quality items. This idea has made Americans stricter in their tastes. The shift to the idea of reusing, recycling, and giving life to old things has become a new concept called “secondary behavior”.
Today American pre-owned luxury market is among the most rapidly developing in the world. As FashionUnited claims, “the resale market has grown 21 times faster than the retail fashion market over the past three years and is projected to grow from 24 billion US dollars to 51 billion US dollars in the next five years”.
According to statistics, luxury sales in America reached €80 billion in 2018, representing a growth of 5%. Tiffany & Co. remain the leader in the luxury retail sector.
Asian Pre-Owned Luxury Market
Asian countries were also among the pioneers accepting the idea of sustainability and the secondary luxury market and they created a huge turnover of material things. It is well-known that China's massive production accounts for 75% of worldwide goods and Chinese consumers are already not that easy to surprise. That’s why the Asian secondhand luxury market is among the biggest today.
Turning to the statistical reposts, experts from Bain & Company claim that “Chinese consumers’ appetite for luxury remains unrivaled”. Their share in global luxury spending continues to rise from 32% in 2017 to 33% in 2018. Across Asia, sales grew by 9%.
As retailinasia.com says, pre-owned fashion is the new trend thanks to numerous apps and online platforms stimulating consumers’ activity. Speaking about dominating goods, bags remain the top interest for the consumers with an average of 77% in 2016-2017. Apart from bags, there is a strong interest in shoes and apparel. The most beloved brands are Louis Vuitton, Hermès, and Channel. Gucci, Celine, and Dior are also in the top 10 list.
5 Reasons Why Pre-Owned Luxury Has Become So Popular
There are numerous reasons why pre-owned luxury is growing rapidly. However, there are five main reasons that triggered the development of this interesting phenomenon and you can find them below.
Reason 1: Sustainability
One of the main reasons which is widely discussed today is the change of economic values and attitudes from the material world in favor of ecology, environmental problems, and the protection of natural resources. It is important to stop simply satisfying ourselves as consumers, it is time to think about the environment and stop this massive destruction.
Reason 2: Circular Economy
However strange it might sound, the economy is changing towards circular mode, putting consumer’s smart approach in the first place. It is important to pay attention to what you invest your time, money, and efforts in. That’s why many products get their second life, teaching consumers to behave differently. A conscious attitude is important in order to deal with environmental problems, pollution, and overconsumption that we are facing today.
Reason 3: Digitalization and Globalization
It is impossible not to mention the ongoing process of digitalization and globalization and as a result the spread of peer-to-peer relationships. Now using online marketplaces and various apps, it is easy to buy a bag from the other part of the world and to have it delivered within a few days. Such opportunity gives additional value to the preloved piece – you can get all the information directly from the previous owner, consult, discuss, and understand better which item you are buying.
Reason 4: Affordability
Of course, one should mention affordability as an important argument in favor of buying pre-owned luxury items. The price usually is not that high. For many collectors, some pieces can be super valuable and have a very attractive price tag at the same time.
Reason 5: Durability and Timeless Chic
Another important factor is the high quality of products meaning that they are not only unique but also durable and timeless. Of course, the right luxury item can be a good money investment and become a super vintage piece in your designer collection.
Future and Opportunities of the Pre-Owned Luxury Market
The future of this new market seems to be very bright: some experts predict the global growth in the next several years. According to Boston Consulting Group, the value of the global luxury market reached $1.38 trillion in 2019. The predictions for the upcoming 2020 and 2021 are even more optimistic: the growth will reach up to 9%.
So, we can say that customers are becoming more conscious of their consumption. Today it is a matter of self-perception and attitude to the global environment rather than a desire to express personal style through endless shopping experience.
As experts predict, the trend of “secondary behavior” will continue to grow and anyone can take part in it already today! Have a look at your wardrobe, get rid of the things you don’t need by selling or donating them. It is easy to become a part of the pre-owned market, just give it a try!
Here is our guide on how to clean out your designer closet and make extra cash, as well as tips on how to make money selling your old stuff on social media and the list of 40+ best places to sell your used clothes online for cash.