LuisaViaRoma is launching a resale platform in partnership with second-hand luxury e-tailer Vestiaire Collective.
The Italian fashion company will enable customers to sell pre-loved clothing from over 40 of its luxury brands, including Balenciaga and Dior, in exchange for gift cards that can be used within the online store. The initiative will roll out first in Italy before being available internationally.
“Supporting positive, innovative and circular initiatives is a further and essential step forward in LuisaViaRoma's path towards sustainability. We are proud to collaborate with Vestiaire Collective and to see the shopping experience with different eyes,” Alessandra Rossi, CEO LuisaViaRoma, said in a statement.
Via a digital interface customers upload photos of clothing and will receive a quote within 48 hours. Items are then shipped to one of Vestiaire Collective’s hubs. Customers receive payment four working days after goods have been vetted.
"We are excited to collaborate with LuisaViaRoma to make our service available and share the interest in circularity, a fundamental element for moving towards a more sustainable fashion system and strengthening the impact of resale" said Maximilian Bittner, CEO and president of Vestiaire Collective.
Less likely to buy new
According to Vestiaire Collective’s sustainability impact report released in April, 70 percent of items purchased on its platform prevent a first-hand purchase. The Paris-based company says 85 percent of pre-owned buyers help to reduce overconsumption by trading up to fewer, better-quality items.
The booming business of resale is expected to double its market share between 2020 and 2030, from 9 percent to 18 percent and is a 38 billion euro market.
Insights from McKinsey says industry watchers predict an annual growth rate of 10–15 percent over the next decade, due in part to the success of specialized digital trading platforms, as well as changes in consumer behaviour. While 75–80 percent of luxury consumers are still strictly new-product buyers, many consumers are considering pre-owned products. In the watch market McKinsey predicts sales of pre-owned items to reach thirty percent by 2025.
In March Vestiaire Collective acquired Tradesy, a US-based etailer in the fashion resale industry. Financial terms of the deal were not disclosed, however the combined company will boast a membership community of 23 million users, a catalog of 5 million items and a Gross Merchandise Value ("GMV") exceeding 1 billion dollars.