In today’s thriving luxury resale market, brands are realizing the immense potential for attracting new fans to their products. A recent study conducted by Vestiaire Collective in collaboration with Boston Consulting Group (BCG) sheds light on why luxury brands should embrace this trend and leverage it for recruiting new customers.
Titled “Why Luxury Brands Should Celebrate the Pre-Owned Boom,” the study underscores three crucial points. Firstly, the second-hand market serves as a powerful recruitment tool for luxury brands by introducing consumers to their products who may not have the means to purchase brand-new items initially. This opens up opportunities for brand loyalty to grow as consumers mature and increase their spending capabilities. A staggering 62% of survey respondents admitted that they made their first purchase from a luxury brand on the second-hand market, expressing a strong interest in buying from the brand directly in the future.
Secondly, while some second-hand buyers admitted to purchasing items they couldn’t afford new, interestingly, 70% of sales on Vestiaire Collective come from sellers who rarely engage in second-hand purchases themselves. This suggests that the resale market incentivizes sellers to make first-hand luxury purchases as well, with 32% stating that they sell items to fund future luxury buys and 44% claiming to purchase even more expensive items as a result of their resale activities.
Lastly, by embracing the second-hand market, luxury brands can champion sustainability within the industry, appealing to environmentally-conscious consumers, particularly of the millennial and Gen-Z cohorts. By supporting resale, brands can showcase their dedication to ethical practices and bolster their eco-friendly credentials, resonating with consumers who prioritize environmental and social responsibility.
Based on data from a survey of over 1,000 Vestiaire Collective users in October 2018 and the 2019 BCG x Altagamma survey with 12,000 respondents, the study underscores the advantages for luxury brands in embracing the pre-owned boom. By recognizing the potential for recruiting new fans, encouraging sellers to make first-hand purchases, and championing sustainability, brands can effectively capitalize on the growing luxury resale market to enhance their brand appeal and reach.
To learn more about the luxury resale market and its benefits for brands, check out this article by Vogue Business and this piece by Forbes.
