Woman surrounded by luxury designer items

The resale space is set to more than double in market value | Source: Vestaire Collective Facebook

Luxury Brands Get In On Pre-Loved Market

Set to eclipse the fast fashion industry over the coming years, the resale market is being recognised as a prime profit opportunity by entrepreneurs and luxury fashion houses alike. Now valued at more than A$22 billion, shoppers have no shortage of luxury resale retailers at their fingertips. From The RealReal and Vestaire Collective to Valentino’s Vintage, luxury fashion lovers are embracing vintage designer marketplaces as an opportunity to build designer collections and curate unique wardrobes.

Luxury brands jumping on the bandwagon

According to a report by Verified Market Research, the resale market is projected to grow to A$93 billion by 2028. And with shoppers spending big at luxury vintage consignment stores and resale platforms, it’s not hard to see why the industry is shifting towards vintage offerings and circular models. According to thredUP’s 2021 Resale Report, the resale market is set to grow 11 times faster than the broader retail clothing sector by 2025. The future of fashion is largely second-hand and established luxury fashion brands can no longer ignore it.

Some of the consignment clothing at the RealReal | Source: Jason Henry for The New York Times

Innovation and adoption of new circular business models are highly likely to grow across the fashion industry regardless of participation from existing fashion retailers — those that fail to respond risk losing the initiative on this topic and missing out over the longer term.

Excerpt from The Future of Circular Fashion report

Gucci recently launched its own vintage department with Gucci Vault. Jean-Paul Gaultier has opened up its archives to allow high fashion lovers to buy vintage pieces and rent some of the designer’s previous runway looks. Diesel now offers revitalised pre-loved Diesel denim. Valentino is partnering with vintage boutiques around the world to grant its pre-owned garments a second life.

The benefits of pre-loved fashion

Every year the average Australian buys 27 kilograms of new clothing and will then discard 23 kilos of clothing to landfill in the same year.

While buying vintage luxury goods offers fashion lovers the ability to own unique designer pieces, shifting fashion purchases to the pre-loved market reduces the environmental impact posed by the general retail sector. The fashion industry accounts for between eight and 10 per cent of global carbon emissions.

What’s more is that resale marketplaces like The RealReal, Vestaire Collective, Mytheresa and Luxe.It.Fwd can make the luxury brand space more accessible in terms of affordability, especially as vintage offerings from the brands themselves can end up being just as expensive as buying new after refurbishment. Of course, there are exceptions, like the lucrative vintage Chanel bag market, but pre-owned luxury fashion can help you save a penny or two, or make one if you’re looking to sell pre-owned luxury fashion goods.

The tie-in is part of Vestiaire Collective’s 10th-anniversary celebrations | Source: Tom D Morgan

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