Luxury resale is seeing a significant uptick in high-value purchases amidst the challenges posed by the Covid-19 pandemic, as indicated by the latest annual report from The RealReal, a leading consignment marketplace. The report underscores a noticeable shift towards high-end jewelry, handbags, and watches, with sales in these categories far outpacing those of lower-value items. Despite the prevailing economic uncertainties, consumers are gravitating towards well-established luxury brands renowned for their timeless designs and strong resale value.
Louis Vuitton has emerged as the most coveted luxury brand on The RealReal, surpassing industry heavyweights such as Gucci and Chanel. Other prominent names like Prada and Hermès also secured spots in the top five rankings. The report additionally points out the growing popularity of luxury streetwear, with Balenciaga reigning as the most sought-after brand in this sector. Givenchy has also left a mark, claiming the sixth spot in terms of consumer demand.
The shift towards spending more time at home due to the pandemic has driven a surge in the demand for home items on The RealReal, with home consignments experiencing a remarkable 150% increase. This trend reflects a shift in consumer priorities towards investing in their living spaces. Furthermore, the resale market has witnessed a 27% rise in new consignors, with a significant portion being Gen Z individuals or millennials.
Beyond just altering consumer behavior, the crisis has spurred broader participation in the circular economy. Rati Levesque, the COO of The RealReal, notes that Gen Z, millennials, and men are shaping the future of luxury shopping. The report also identifies a growing preference for understated luxury over ostentatious logos, with discreet handbags and men’s styles gaining traction.
Based on sales and demand data from The RealReal’s vast user base of over 17 million members, the insights from the Resale Report 2020 shed light on the shifting landscape of the luxury resale market. As the industry continues to adapt to changing consumer preferences and market dynamics, it remains to be seen how these evolving trends will impact its future trajectory.
For more information on luxury resale trends, you can visit The RealReal website. Additionally, to explore the latest in luxury fashion and accessories, you can check out Vogue’s Fashion section.
