According to The RealReal’s 2022 Luxury Resale Report, the resale market is thriving as consumer behavior and spending habits undergo significant shifts. The report, which draws data from the world’s largest online marketplace for authenticated luxury goods, reveals the increasing popularity of resale among shoppers, with a 27% increase in familiarity compared to the previous year. The RealReal has also experienced significant growth, adding 5.3 million new shoppers in the first half of the year, a 23% increase since 2021. Furthermore, customers are purchasing more items from The RealReal, with a notable 44% increase in sales over the past year.
Rati Sahi Levesque, the co-interim CEO, president, and COO of The RealReal, highlights the reliability and discoverability of the secondhand market as a form of escapism for consumers amidst the uncertainty of the current world. This has led shoppers and consignors to recognize the economic, environmental, and emotional value of resale, especially considering supply constraints in the primary market, concerns about inflation, and the growing climate crisis. Through resale, consumers are becoming more knowledgeable, exploring new investment opportunities, and embracing circularity like never before.
The report also sheds light on the demographics of The RealReal’s shoppers. Gen Z’s interest in resale has seen the fastest growth, with a 35% increase in visits compared to the previous year. However, Millennials remain the largest resale generation, accounting for the highest volume of buyers and sellers on the platform. These two generations also display distinct shopping preferences. Gen Z is showing a 186% increase in spending on pendants, while Millennials are favoring unbranded engagement rings with a 107% increase in spending. Gen Z also leans towards skin-baring mini skirts and Cartier, whereas Millennials opt for practical pants and Patek Philippe.
In terms of product categories, collectibles have experienced significant growth on The RealReal, with a 78% increase in sales in the first half of 2022. Vintage clothing, in particular, has skyrocketed in demand, experiencing a remarkable 439% increase compared to other vintage categories. Among brands, Balenciaga has witnessed the highest demand growth, with a 41% increase year-over-year, primarily driven by Gen Z. Dior has also made a comeback, securing a spot in the top 10 brands for the first time since 2019, with a 31% increase in demand. The Vintage Icon Gucci Blondie has been crowned the “It Bag” of 2022.
Sasha Skoda, the senior director of women’s and fine jewelry, explains that the revival of iconic bags and celebrity appeal are pivotal factors in the success of brands like Dior and Balenciaga. The Lady Dior bag, popularized by Princess Diana in the ’90s, has once again become a highly sought-after item across all age groups. Celebrities such as Bella Hadid and Cardi B sporting John Galliano’s iconic designs for Dior have propelled the brand back into the top 5. Balenciaga’s collaborations with Justin Bieber and Kim Kardashian have also significantly contributed to its widespread appeal and resurgence in the top 10 list.
In conclusion, The RealReal’s 2022 Luxury Resale Report highlights the continuous growth and popularity of the resale market. With more people familiarizing themselves with and engaging in resale, the market is poised for further expansion. As consumers seek economic value, environmental sustainability, and unique fashion finds, the resale industry continues to provide a viable and exciting alternative to traditional retail.
Useful links:
1. The RealReal
2. The RealReal’s Fight Against Counterfeit
