The luxury resale market is experiencing substantial growth, and this can largely be attributed to sustainability and supply constraints, according to The RealReal’s 2022 Luxury Consignment Report. The report, which compares data from January to November of 2020 and 2021, emphasizes the rising popularity of the secondary market, with a significant number of The RealReal shoppers opting for resale items over fast fashion alternatives. In fact, 40 percent of the platform’s customers have replaced their fast fashion purchases with resale items. Moreover, sold-out styles have garnered 50 percent more new buyers compared to standard resale items in the past year. Sustainability is a key driver behind this trend, as 43 percent of shoppers stated that their decision to shop resale is influenced by environmental concerns.
The report also sheds light on the role of Generation X in shaping the resale market. This generation is increasingly selling vintage pieces to Millennials and Gen Z shoppers, who have shown an appreciation for timeless luxury items such as the iconic Fendi Baguette, Tiffany & Co. bracelets, and Louis Vuitton multicolor bags. On the other hand, contemporary logos like Tory Burch, Michael Kors, and Kate Spade are losing traction among these younger demographics. The appeal of resale transcends generational boundaries, as the report finds that the Silent Generation, Baby Boomers, Generation X, Millennials, and Generation Z have all significantly increased their adoption of secondhand luxury in 2021.
Gucci emerges as the top brand across all age groups, while dresses dominate the most popular items sold and purchased by first-time consignors and shoppers. The report also identifies several brands that have experienced substantial resale value gains, including Nike, Rolex, Bottega Veneta, Chrome Hearts, and Hermès. Notably, the report highlights the soaring resale value of New Balance sneaker collaborations, which have reached a remarkable 387 percent increase. Additionally, there has been a surge in demand for vintage and unbranded jewelry sets, with an unbranded engagement ring fetching a record-breaking $350,000 on The RealReal.
Another noteworthy trend is the increasing popularity of gender-fluid designs. Women are purchasing men’s Balenciaga, men are buying women’s Bottega Veneta, and women are embracing men’s suiting. These trends indicate a growing acceptance and appreciation for gender-neutral fashion choices in the luxury resale market.
In conclusion, The RealReal’s Luxury Consignment Report underscores the growing allure of the luxury resale market driven by sustainability concerns and supply constraints. Consumers of all ages are actively participating in the resale market, signaling a shift towards more conscious and circular fashion consumption. The increased resale value of luxury brands further solidifies the prominence of this market, showcasing its mainstream appeal. It is evident that the luxury resale market is not just a passing trend but a prominent and permanent fixture in the fashion industry.
Useful links:
1. The RealReal
2. The Luxury Resale Market Growth
