The secondary market in the luxury sector has played a vital role in its resilience, especially during the Covid-19 crisis. According to Maximilien Urso, the CEO of Efficio Group and Cresus, the secondary market has experienced a significant boost in digitalization. As the pandemic forced businesses to shut down physical stores, the online presence of the secondary market grew rapidly. Cresus, a specialist in pre-owned watches, witnessed a 36% growth in e-commerce during this period.
Urso highlights that the secondary market’s digital acceleration is closely linked to the increased focus on social and environmental responsibility. Consumers are now more aware of the impact of their purchase decisions and are turning to discounted new and pre-owned luxury products as a sustainable alternative. E-commerce provided an avenue for businesses like Cresus to maintain their customer service and stay connected with their clients during the pandemic. Although online sales couldn’t fully compensate for the decline in brick-and-mortar business, it did help mitigate the overall impact on the company’s financial results.
Cresus, like many other luxury businesses, faced the challenge of adapting to a new way of serving customers. With physical stores closed, customers were unable to try on watches in-store. However, Cresus introduced solutions such as reserving watches for existing trusted customers and implementing a system of free delivery and returns for customers seeking to purchase watches remotely. As physical stores reopen gradually, Cresus has implemented appointments to manage customer flow effectively.
Urso also emphasizes how the crisis has led to a shift in luxury as an investment. Best-selling luxury products, such as Rolex and Audemars Piguet, have seen a 20% increase in demand. Luxury houses are also changing their attitude towards the second-hand market. Previously, they did not prioritize this market, but the crisis has opened up new opportunities and economic levers. Integrating the secondary market into their overall strategy allows luxury brands to mitigate risks and attract new customers. The secondary market represents a significant portion of the luxury sector’s turnover, with an annual growth rate ranging from 10 to 12% depending on the sectors.
For those interested, the full speech by Maximilien Urso can be exclusively viewed on the Salon du Luxe Paris website.
Useful links:
1. Efficio Group
2. Cresus
