- Angela Gonzalez-Rodriguez |
New York - In the past few years, the sale of the pre-owned luxury goods have been increasing very rapidly, mainly driven by the new generations of consumers and a dismissing stigma associated with the consumption of the second-hand luxury.
The global luxury resale market has increased at a significant CAGR during the years 2014-2017 and projections are made that the market would rise in the next four years tremendously reveals a recently published luxury resale report.
Global luxury resale market is expected to grow exponentially between 2019 and 2025
The "Global Luxury Resale Market: Size, Trends and Forecasts (2018-2022)" report finds that the luxury resale market is expected to increase due to the growing millennial population, increasing middle class population and spending, soaring urban population and escalating internet users.
According to this research, buyers of the second-hand luxury are not necessarily poor, in fact they are either value-conscious consumers or fashion-conscious consumers.
Yet the market faces some challenges such as lack of trust in buying second-hand luxury, e-commerce fraud, and lack of awareness.
Luxury resale market moving towards consolidation
The research highlights the key benefits of buying and selling of second-hand luxury goods: money-saving, saving of environment, supporting local business, discovering new brands and buying something new.
Historically, the global luxury resale market has been fragmented and dominated by small local boutiques with little consumer reach. However, the growing online luxury resale sites have completely changed the luxury resale market and the market move towards consolidation.In fact, today’s luxury resale market is dominated by a few players, namely The RealReal, Inc., Vestiaire Collective, Poshmark Inc., and ThredUp, Inc.