What’s Next in Luxury Fashion? Luxury Resale 2020 Trend!
What is Luxury? According to Lwren Scott, “Luxury is a state of mind.”
Gone are the times, when Luxury was all about the price tag. For today’s Millennials & Gen-Z consumers, Luxury is about the experience, personalization, uniqueness, and the emotion that is felt with the luxury purchase.
Why is Luxury Fashion such a hot topic?
Let us take a quick look into some luxury fashion facts:
- According to Statista, by 2025, the luxury fashion market is expected to value at approximately $130 Billion with a CAGR of 6.6%.
- The U.S. is the biggest market for luxury fashion followed by Mainland China, Japan, Germany & Italy.
- The fact that “Fashion industry is the second-largest polluting industry in the world” is not hidden from anyone.
- More and more Millennials & Gen-Z consumers are looking for authentic and sustainable luxury fashion experiences.
So, now the big question is:
Can Luxury Fashion be sustainable, elegant, and authentic at the same time? What does the future look like for Luxury Fashion Industry?
Let us dive deeper into the world of luxury fashion and try to find the solution!
Second-Hand or Resale Luxury Fashion
- Second-hand/ Resale luxury fashion market is evolving four times faster than the foremost luxury market at a rate of 12% per year.
- In 2020, the luxury resale market already represents a market worth $24 Billion.
Why is the resale luxury fashion business model becoming so popular?
1. Why go out, when you can shop ONLINE?
The Millennials and Gen-Z consumers are now purchasing luxury items online more than ever. According to Statista, the share of online luxury sales has increased from 8% in 2017 to 11% in 2020. And, this share of online sales is likely to reach 14% in 2023. And, online resellers like Vestiaire Collective & The Real Real are driving the forces for the growth of the pre-owned market. These resale luxury fashion websites are performing well beyond what brick and mortar stores ever did before.
2. Sustainability is not an option anymore!
Today’s consumer is conscious of their choices and purchase. They are deeply considerate about the impact of their purchases on the environment and society. And, this is the main reason why luxury houses are gradually moving towards ethical and sustainable experiences and products. The luxury houses have to adopt the circular economy business model which is another driver of the luxury resale growth. This is fueled, in part, by younger generations and their heightened desire for sustainability.
“Our customers are very conscious of the importance of sustainability, and unlike many people, they can afford to choose products that, while perhaps initially more expensive, will last for years. Increasingly, all consumers are aware of the impact on the environment of the production of fashion and are concerned. The younger the customer, the more this is a consideration for them.”
– Stella McCartney, Fashion Designer
3. If it’s LIMITED-EDITION, I want it!!
Luxury is about feeling “special” and the concept of limited-edition products is to make the buyer feel exclusive and distinctive. The popularity of limited-edition capsule collections and fashion items increases the scarcity which fuels a huge secondhand market of new or nearly new items.
4. Luxury never fades!
The fact that luxury products are durable and timeless by nature makes luxury fashion a good fit for the resale market.
Now, you may ask:
Are second-hand luxury products sold online legit and authentic?
As stated on Vestiaire Collective website:
- A team of experts is dedicated who identify counterfeits and maintain high-quality standards of your purchase.
- Once the online resale brand receives an item from the seller, it is inspected to ensure it’s size, brand, and color match the description.
- If any discrepancies are found, the buyer can cancel the order.
To ensure that your purchase is authentic, make sure that you are buying from brands that have a transparent business model and take credit for their actions.
What are the challenges to the luxury second-hand/resale market?
Luxury brands have been resistant to boost the resale market because of the fear of dilution of the exclusiveness of their luxury brands. To conquer this, the brands must think about the positive impacts of the resale. The second-hand luxury market is an opportunity for luxury brands to brace long-term sustainable goals.
Before we take-off, here is a quick glance into the positive impact you can make if you buy a used item instead of buying a new one.
You would save:
- 5.7B lbs of CO2e= 66M trees planted
- 25B Gallons of water = 1.25B showers
- 449M lbs of waste = 18,700 garbage trucks full (Source: Thred Up)
Thank you for reading & let us try to save the planet one step at a time!
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