Global Luxury Resale Market (by Product, Distribution Channel, Gender & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Description

Market Insight:

In recent years, the selling of pre-owned luxury products has increased significantly, and the stigma associated with the consumption of second-hand luxury has faded.

The buying and selling of previously owned luxury items is referred to as luxury resale. Luxury goods are expensive and high-quality products. However, the demand for luxury resale is increasing, across the world, since it is more relatively inexpensive and offers both online and offline outlets for the marketing of second-hand products. The global luxury resale market is forecasted to reach US$39.23 billion in 2023, growing at a CAGR of 9.69% during the forecast period.

Segment Covered:

By Product: In terms of product type, the report provides the bifurcation of the global luxury resale market into three different segments: apparel luxury, hard luxury and others. Apparel luxury resale segment held the maximum share in luxury resale market, and is the fastest growing segment due to growing acceptability of second-hand apparel from consumers.
By Distribution Channel: The report splits the global luxury resale market into two segments, based on the distribution channel: offline and online. In both the markets, the fastest growing category is online, owing to larger influence of digitalization on consumer's selection of luxury resale brands and merchandise.
By Gender: On the basis of gender, the market has been segmented into two namely males and females. Male segment held the major share in the market. With more brands selling second-hand luxury apparels and watches at a discounted pricing with great offers on the ecommerce platforms, the demand from males for luxurious resale items have increased in recent years.

Geographic Coverage:

According to this report, the global market can be divided into four major regions, on the basis of geographical areas: Europe, North America, China, and Rest of World. The countries covered in European region include France, UK, Italy, Germany, and Rest of Europe, while North America includes the US, Mexico, and Canada.

The European luxury resale market enjoyed the largest share of the global market, primarily owing to widespread presence of several luxury retail brands ranging from fashion apparel to cosmetics. On the other hand, the China hard luxury resale market is the emerging region in the global market, growing at a high CAGR due to the surge in the demand for pre-owned hard luxury items such as watches.

Top Impacting Factors:

Growth Drivers

Growing Millennial Population
Increasing Middle Class Population and Spending
Escalating Internet Users
Growing High Net Worth Individuals (HNWI) Population

Challenges

Lack of Trust in Buying Second-hand Luxury
E-commerce Fraud

Trends

Surge in the Luxury Goods E-commerce Sales
Increasing Thrifters' Demand for Pre-owned Luxury
Growing Popularity of Second-hand Soft Luxury
Involvement of Product Authentications Techniques
Driver: Escalating Internet Users

Buying second-hand luxury is nothing new, but the sector has been growing considerably due to the rising internet users. The internet always makes it easier for the consumers to buy previously owned luxury products. Due to the rising internet users, almost all the prominent luxury players are also starting to resale their products through an e-commerce site. Therefore, the increasing number of internet users significantly implies the more reselling of second-hand luxury products, augmenting the luxury resale market.

Challenge: Lack of Trust in Buying Second-hand Luxury

The inherent lack of trust in buying second-hand luxury, is the most likely reason behind the low penetration in the market. Many people do not consider the second-hand luxury good sites as a trust-worthy option. And, in fact, they also feel that second-hand luxury lacks longevity. Some luxury players also sell the products which are generally replicas or fake products of the original one, which ultimately resulted in the lack of trust from the consumer point of view. The lack of trust in buying second-hand luxury is not only limited to consumers, but it is also affecting luxury brands. Hence, the inherent lack of trust is eventually regarded as a key factor that restrain the luxury resale market growth.

Trend: Surge in the Luxury Goods E-commerce Sales

It can be seen that overall online sales are on the rise. Driven by better pricing, greater variety, numerous discount offers and easy payment mechanisms, consumers are more attracted to digital alternatives to buy luxury products. The quickly emerging online players appear best placed to capture this opportunity and would allow more buying and selling of pre-owned luxury goods on a digital platform. The rapidly increasing online sales of luxury goods would directly encourage the growth of the luxury resale market.

The COVID-19 Analysis:

The COVID-19 pandemic had a mixed impact on the global luxury resale market. As a result of the pandemic, slight decline in demand for luxury resale items was observed. The impact of prolonged lockdown had created a sudden gap in supply and demand of the secondhand luxury industry. The COVID-19 created awareness about eco-friendly methodology and usage of pre-owned luxury products was redefined. In the coming years, the market is predicted to grow at a faster rate and recover to the pre-COVID marks. With the increased understanding of the benefits of online platform of the industry, large number of large luxury brands are partnering with resale online platforms, and changing in marketing techniques by offering rebates over exchanging old luxury items over the new items, which would provide a boom in the industry.

Analysis of Key Players:

Historically, the global luxury resale market has been fragmented and dominated by small local boutiques with little consumer reach. However, due to the impact of COVID-19, the market witnesses the growing online luxury resale sites which have completely changed the luxury resale market and the market move towards consolidation. Recently, many online resale platforms have seen collaborating with luxury brands to ensure authentication of the products sold online. While, offline stores such as boutiques are closing or adopting hybrid models where they are showcasing their products and its information online so that customers are aware about the products and running their shops as exhibition, and storing purpose. The key players of the luxury resale market are:

Farfetch Ltd.
ThredUp, Inc.
The RealReal, Inc.
Poshmark Inc.
Everlane Inc.
Compagnie Financiere Richemont SA (YOOX Net-a-Porter Group)
Vestiaire Collective
Cudoni
Trendly, Inc. (Rebag)
TechStyle Fashion Group (JustFab Inc.)
Kynetic (Rue La La)
OfferUp, Inc. (Letgo Inc.)

Many luxury labels are finally recognizing that embracing resale of luxury goods trends offers a commercial potential. Previously, these labels fought and policed resale of their items, but lately they welcome it by working with e-resale platforms to market their pre-owned products. For instance, The RealReal has collaborated with Burberry, Stella McCartney, and, most recently, Gucci in 2020. In the meanwhile, Vestiaire Collective launched its "Brand Approved" buyback programme with Alexander McQueen in February 2021. The initiative works by granting store credit for the brand's current collection in return for past-season products, which are then examined and resold online via Alexander McQueen boutiques.

1. Executive Summary

2. Introduction

2.1 Luxury Resale: An Overview
- 2.1.1 Definition of Luxury Resale
- 2.1.2 Benefits of Buying and Selling Second-hand Luxury Goods
2.2 Luxury Resale Segmentation: An Overview
- 2.2.1 Luxury Resale Segmentation

3. Global Market Analysis

3.1 Global Luxury Resale Market: An Analysis
- 3.1.1 Global Luxury Resale Market by Value
- 3.1.2 Global Luxury Resale Market by Product (apparel luxury, hard luxury and others)
- 3.1.3 Global Luxury Resale Market by Distribution Channel (offline and online)
- 3.1.4 Global Luxury Resale Market by Gender (males and females)
- 3.1.5 Global Luxury Resale Market by Region (Europe, North America, China, and Rest of World)
3.2 Global Luxury Resale Market: Product Analysis
- 3.2.1 Global Apparel Luxury Resale Market by Value
- 3.2.2 Global Hard Luxury Resale Market by Value
- 3.2.3 Global Hard Luxury Resale Market by Distribution Channel (offline and online)
- 3.2.4 Global Hard Luxury Resale Market by Gender (males and females)
- 3.2.5 Global Hard Luxury Resale Market by Region (Europe, North America, China, and Rest of World)
- 3.2.6 Global Others Luxury Resale Market by Value
3.3 Global Luxury Resale Market: Distribution Channel Analysis
- 3.3.1 Global Online Luxury Resale Market by Value
- 3.3.2 Global Offline Luxury Resale Market by Value
3.4 Global Hard Luxury Resale Market: Distribution Channel Analysis
- 3.4.1 Global Online Hard Luxury Resale Market by Value
- 3.4.2 Global Offline Hard Luxury Resale Market by Value

4. Regional Market Analysis

4.1 Europe Luxury Resale Market: An Analysis
- 4.1.1 Europe Luxury Resale Market by Value
- 4.1.2 Europe Luxury Resale Market by Region (France, UK, Italy, Germany, and Rest of Europe)
- 4.1.3 France Luxury Resale Market by Value
- 4.1.4 UK Luxury Resale Market by Value
- 4.1.5 Italy Luxury Resale Market by Value
- 4.1.6 Germany Luxury Resale Market by Value
- 4.1.7 Rest of Europe Luxury Resale Market by Value
- 4.1.8 Europe Hard Luxury Resale Market by Value
4.2 North America Luxury Resale Market: An Analysis
- 4.2.1 North America Luxury Resale Market by Value
- 4.2.2 North America Luxury Resale Market by Region (The US, Mexico and Canada)
- 4.2.3 The US Luxury Resale Market by Value
- 4.2.4 The US Luxury Resale Market by Product (apparel luxury, and others)
- 4.2.5 The US Apparel Luxury Resale Market by Value
- 4.2.6 The US Others Luxury Resale Market by Value
- 4.2.7 The US Luxury Resale Market by Distribution Channel (offline and online)
- 4.2.8 The US Online Luxury Resale Market by Value
- 4.2.9 The US Offline Luxury Resale Market by Value
- 4.2.10 Canada Luxury Resale Market by Value
- 4.2.11 Mexico Luxury Resale Market by Value
- 4.2.12 North America Hard Luxury Resale Market by Value
- 4.2.13 North America Hard Luxury Resale Market by Region (The US, Mexico and Canada)
- 4.2.14 The US Hard Luxury Resale Market by Value
- 4.2.15 Canada Hard Luxury Resale Market by Value
- 4.2.16 Mexico Hard Luxury Resale Market by Value
4.3 China Luxury Resale Market: An Analysis
- 4.3.1 China Luxury Resale Market by Value
- 4.3.2 China Luxury Resale Market by Gender (males and females)
- 4.3.3 China Hard Luxury Resale Market by Value
4.4 Rest of World Luxury Resale Market: An Analysis
- 4.4.1 Rest of World Luxury Resale Market by Value
- 4.4.2 Rest of World Hard Luxury Resale Market by Value

5. Impact of COVID

5.1 Impact of COVID-19 on Global Luxury Resale Market
5.2 Post-COVID-19 Impact on Global Luxury Resale Market

6. Market Dynamics

6.1 Growth Driver
- 6.1.1 Growing Millennial Population
- 6.1.2 Increasing Middle Class Population and Spending
- 6.1.3 Surging Urban Population
- 6.1.4 Escalating Internet Users
- 6.1.5 Growing High Net Worth Individuals (HNWI) Population
6.2 Challenges
- 6.2.1 Lack of Trust in Buying Second-hand Luxury
- 6.2.2 E-commerce Fraud
- 6.2.3 Lack of Awareness
6.3 Market Trends
- 6.3.1 Surge in the Luxury Goods E-commerce Sales
- 6.3.2 Increasing Thrifters' Demand for Pre-owned Luxury
- 6.3.3 Growing Popularity of Second-hand Soft Luxury
- 6.3.4 Involvement of Product Authentications Techniques

7. Competitive Landscape

7.1 Global Luxury Resale Market Players: Websites Comparison
7.2 The US Luxury Resale Market Players Analysis

8. Company Profiles

8.1 The RealReal, Inc.
- 8.1.1 Business Overview
- 8.1.2 Operating Segment
- 8.1.3 Business Strategy
8.2 ThredUp, Inc.
- 8.2.1 Business Overview
- 8.2.2 Operating Segment
- 8.2.3 Business Strategy
8.3 Farfetch Ltd.
- 8.3.1 Business Overview
- 8.3.2 Operating Segment
- 8.3.3 Business Strategy
8.4 Compagnie Financiere Richemont SA (YOOX Net-a-Porter Group )
- 8.4.1 Business Overview
- 8.4.2 Operating Segment
- 8.4.3 Business Strategy
8.5 Vestiaire Collective (Tradesy)
- 8.5.1 Business Overview
- 8.5.2 Business Strategy
8.6 Poshmark Inc.
- 8.6.1 Business Overview
- 8.6.2 Business Strategy
8.7 Everlane Inc.
- 8.7.1 Business Overview
- 8.7.2 Business Strategy
8.8 OfferUp, Inc. (Letgo Inc.)
- 8.8.1 Business Overview
- 8.8.2 Business Strategy
8.9 Trendly, Inc. (Rebag)
- 8.9.1 Business Overview
- 8.9.2 Business Strategy
8.10 Cudoni
- 8.10.1 Business Overview
- 8.10.2 Business Strategy
8.11 TechStyle Fashion Group (JustFab Inc.)
- 8.11.1 Business Overview
8.12 Kynetic (Rue La La)
- 8.12.1 Business Overview
Table of Figures
Figure 1: Benefits of Buying and Selling Second-hand Luxury Goods
Figure 2: Luxury Resale Segmentation
Figure 3: Global Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 4: Global Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 5: Global Luxury Resale Market by Product; 2021 (Percentage, %)
Figure 6: Global Luxury Resale Market by Distribution Channel; 2021 (Percentage, %)
Figure 7: Global Luxury Resale Market by Gender; 2021 (Percentage, %)
Figure 8: Global Luxury Resale Market by Region; 2021 (Percentage, %)
Figure 9: Global Apparel Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 10: Global Apparel Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 11: Global Hard Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 12: Global Hard Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 13: Global Hard Luxury Resale Market by Distribution Channel; 2021 (Percentage, %)
Figure 14: Global Hard Luxury Resale Market by Gender; 2021 (Percentage, %)
Figure 15: Global Hard Luxury Resale Market by Region; 2021 (Percentage, %)
Figure 16: Global Others Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 17: Global Others Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 18: Global Online Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 19: Global Online Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 20: Global Offline Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 21: Global Offline Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 22: Global Online Hard Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 23: Global Online Hard Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 24: Global Offline Hard Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 25: Global Offline Hard Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 26: Europe Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 27: Europe Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 28: Europe Luxury Resale Market by Region; 2021 (Percentage, %)
Figure 29: France Luxury Resale Market by Value; 2017- 2021 (US$ Billion)
Figure 30: France Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 31: UK Luxury Resale Market by Value; 2017- 2021 (US$ Billion)
Figure 32: UK Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 33: Italy Luxury Resale Market by Value; 2017- 2021 (US$ Billion)
Figure 34: Italy Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 35: Germany Luxury Resale Market by Value; 2017- 2021 (US$ Billion)
Figure 36: Germany Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 37: Rest of Europe Luxury Resale Market by Value; 2017- 2021 (US$ Billion)
Figure 38: Rest of Europe Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 39: Europe Hard Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 40: Europe Hard Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 41: North America Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 42: North America Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 43: North America Luxury Resale Market by Region; 2021 (Percentage, %)
Figure 44: The US Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 45: The US Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 46: The US Luxury Resale Market by Product; 2021 (Percentage, %)
Figure 47: The US Apparel Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 48: The US Apparel Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 49: The US Others Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 50: The US Others Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 51: The US Luxury Resale Market by Distribution Channel; 2021 (Percentage, %)
Figure 52: The US Online Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 53: The US Online Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 54: The US Offline Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 55: The US Offline Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 56: Canada Luxury Resale Market by Value; 2017-2021 (US$ Million)
Figure 57: Canada Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 58: Mexico Luxury Resale Market by Value; 2017-2021 (US$ Million)
Figure 59: Mexico Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 60: North America Hard Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 61: North America Hard Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 62: North America Hard Luxury Resale Market by Region; 2021 (Percentage, %)
Figure 63: The US Hard Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 64: The US Hard Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 65: Canada Hard Luxury Resale Market by Value; 2017-2021 (US$ Million)
Figure 66: Canada Hard Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 67: Mexico Hard Luxury Resale Market by Value; 2017-2021 (US$ Million)
Figure 68: Mexico Hard Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 69: China Luxury Resale Market by Value; 2017- 2021 (US$ Billion)
Figure 70: China Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 71: China Luxury Resale Market by Gender; 2021 (Percentage, %)
Figure 72: China Hard Luxury Resale Market by Value; 2017- 2021 (US$ Million)
Figure 73: China Hard Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 74: Rest of World Luxury Resale Market by Value; 2017-2021 (US$ Billion)
Figure 75: Rest of World Luxury Resale Market by Value; 2022-2026 (US$ Billion)
Figure 76: Rest of World Hard Luxury Resale Market by Value; 2017-2021 (US$ Million)
Figure 77: Rest of World Hard Luxury Resale Market by Value; 2022-2026 (US$ Million)
Figure 78: Global Millennial Population; 2000-2025 (Million)
Figure 79: The Millennial Population Buying Second-hand Luxury Products; 2021 (Percentage, %)
Figure 80: Global Middle Class Population; 2020-2030 (Billion)
Figure 81: Global Middle-Class Spending; 2016-2030 (US$ Trillion)
Figure 82: Global Urbanization Rates by Region; 1950-2050 (Percentage, %)
Figure 83: Global Internet Users and Penetration; 2017-2022 (Billion & Percentage, %)
Figure 84: Global High Net Worth Individuals (HNWI) Population; 2016-2020 (Million)
Figure 85: Global Luxury Goods E-commerce Sales; 2016-2025 (US$ Billion)
Figure 86: Global Thrifters' Demand for Pre-owned Luxury; 2012-2022 (Percentage, %)
Figure 87: The US Luxury Resale Market Players by Share; 2021 (Percentage, %)
Figure 88: The RealReal Inc. Revenue by Source; 2020 (Percentage, %)
Figure 89: ThredUp, Inc. Total Revenue by Source; 2021 (Percentage, %)
Figure 90: Farfetch Ltd. Revenue by Segment; 2021 (Percentage, %)
Figure 91: Compagnie Financiere Richemont SA by Segment; 2021 (Percentage, %)
Table 1: Global Luxury Resale Market Players: Websites Comparison