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Bain & Company<\/a>\u00a0estimates that the second-hand LUXURY market soared to reach \u20ac33 billion in 2021, driven by increased demand and a growing offer. Overall, this market grew by 65% between 2017 and 2021, vs. 12% growth for first-hand items. Web3 \/ Blockchain technologies that allow brands to secure product authenticity and traceability are called to be a critical lever for this emerging market.<\/p>","protected":false},"excerpt":{"rendered":" Bain & Company\u00a0estimates that the second-hand LUXURY market soared to reach \u20ac33 billion in 2021, driven by increased demand and a growing offer. Overall, this market grew by 65% between 2017 and 2021, vs. 12% growth for first-hand items. A new study presented by\u00a0McKinsey & Company\u00a0delivers very interesting conclusions. Among them, I highlight: 1.\u00a0\u00a0\u00a0\u00a0Women and […]<\/p>\n","protected":false},"author":1,"featured_media":689,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[33,32,44],"class_list":["post-688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-fashionindustry","tag-luxuryindustry","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/posts\/688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/comments?post=688"}],"version-history":[{"count":1,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/posts\/688\/revisions"}],"predecessor-version":[{"id":690,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/posts\/688\/revisions\/690"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/media\/689"}],"wp:attachment":[{"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/media?parent=688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/categories?post=688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/copia.cesarval.me\/en\/wp-json\/wp\/v2\/tags?post=688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
A new study presented by\u00a0McKinsey & Company<\/a>\u00a0delivers very interesting conclusions. Among them, I highlight:
1.\u00a0\u00a0\u00a0\u00a0Women and new-product owners are leading the ranks. Looking at handbags and shoe categories, resale customers’ profiles are mainly women (75%), being the majority of buyers of new products as well. Furthermore, 75% are also pre-owned sellers of luxury items.
2.\u00a0\u00a0\u00a0\u00a0Younger generations are showing the way. Half of the GenZ are likely to buy more pre-loved items in the future (very close to millennials sentiment, 48%, compared to 35% for GenX or 28% for Boomers).
3.\u00a0\u00a0\u00a0\u00a0Rarity and not price is driving the market. Those who decide to buy a second-hand item instead of a new-product purchase mention rarity (41%) as the core reason, followed by sustainability (40%) and value-for-money (36%). Rarity and not price is driving the market.
4.\u00a0\u00a0\u00a0\u00a0Very interesting finding in terms of brand perception: entering the resale market has a positive impact on loyalty and desirability among new-product buyers of the brand.
5. Wake-up call for brands: Customers who welcome resale services directly provided by luxury brands are willing to pay an aggregated premium of 6-7% per service.
Specialized platforms, such as\u00a0The RealReal<\/a>\u00a0or\u00a0Vestiaire Collective<\/a>, are fuelling the growth of luxury resale. Having initially ignored the pre-loved items segment, brands keen to embrace more circular business models are partnering with these second-hand players to offer authentication services and incentivize customers to consign their past purchases via store credit. Not to mention luxury groups investing in that platforms:\u00a0Kering<\/a>\u00a0(Vestiaire Collective), and\u00a0Richemont<\/a>\u00a0(Watchfinder<\/a>). Expect other large brands to follow suit or build their own go-to-market.<\/p>\n\n\n\n