Are you reconsidering your views on resale luxury yet?

What does luxury mean to you?

For many of us, the word alone probably conjures up images of opulence. Considering that we’re all coming out of holiday mode, time is probably another luxury you’re contemplating. But, were it not for you having to get back to real life, how would you be spending much of that time?

However that might be, one thing is certain. For many of us, the idea of luxury is changing. I recall some years ago, as a young consumer insights analyst, much of our research had suggested that millennials are increasingly redefining luxury, and the value of material possessions. This was around 2016, and if we were correct in our analyses, Gen Z is now the generation leading the pack in this rediscovery of luxury.

This is evident in the rapid growth of the luxury resale market over the past two or three years. The market expanded from $31.67bn in 2023 to $34.79bn in 2024, with a projected value of $50.9bn by 2028. Key drivers include consumer interest in sustainability, the increasing acceptance of second-hand goods, and the rise of online luxury resale platforms. Online sales dominate the market, accounting for about 60% of revenue due to their convenience and reach. Growth can be seen across the accessories, apparel and watches categories.

Per Vogue Business: The appetite for preloved hard luxury was brought into sharp relief at the end of 2022. In November, Fabienne Lupo, former head of Geneva’s hard luxury trade show Watches & Wonders, launched an event dedicated to second-hand luxury goods called ReLuxury. Quoting Lupo, the Condenast outlet reported: “Luxury is meant to last forever. We need to raise awareness about a new way of consuming. Buying new has lost its shine.”

Companies such as Sotheby’s, the premier auction house, and now major players such as Vestiaire Collective, The RealReal and others are market leaders, as is SA’s own Luxity. For its part, Sotheby’s launched its Buy Now platform back at the end of 2020 to allow consumers to buy luxury resale items without going through the bidding process. 

A browse through the platform right now shows items including Hermes exotic leather bags, Chanel purses, watches from Patek Philippe, Rolex, FP Journe, and more. But it also features old movie posters, and other such collectible items. Categories also include furniture, decorative art, jewellery and even vehicles, such as Ferraris, Aston Martins and vintage Porsches. 

The rapid growth of the resale market has prompted brands such as Gucci to try to find a way to tap into it by partnering with Vestiaire Collective. Per Gucci’s official website: “Extending the life of a Gucci product contributes to the House’s vision of a circular future for fashion, and now, as an exclusive service for our ever-growing, eco-conscious clientele, we have partnered with Vestiaire Collective in a new take-back programme. If you are the owner of a handbag from one of our signature lines, you are now able to exchange it for store credit, either through an elevated in-person experience in selected Gucci boutiques or online.”

As one of the traditional luxury brands facing a challenging period with stalling sales, Gucci is aware of the changing reality, where consumers are turning more and more to resale for their luxury fix. So, while many may still consider something fresh out of the box as the ultimate luxury, winds of change beckon due to some fundamental shifts in consumer behaviour, and the very necessary considerations for sustainability, and the prevailing economic climate.

This is because older generations are also increasingly changing their beliefs about recommerced luxury. Per Euromonitor’s Marija Milasevic, this signals “that the historical stigma associated with second-hand products is dissipating rapidly. As a result, consumers of all ages are increasingly open to purchasing second-hand items, embracing resale as a crucial aspect of a mindful and forward-thinking consumer culture. These consumers increasingly believe they can make a positive impact on the world through their choices and actions.”

And so, I ask again, dear reader: What does luxury mean to you? Is it time to change your views on pre-owned luxury, in particular? As you consider this, so are the brands you love. How they move in the face of this growth in recommerce is certainly set to affect the bottom line in the years ahead.