The "Secondhand Luxury Market: Analysis By Product Type, By Distribution Channel, By Region Size and Trends - Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.
The global secondhand luxury market value stood at US$34.39 billion in 2023, and is expected to reach US$60.55 billion by 2029. The market is anticipated to grow at a CAGR of approx. 10% during the forecasted period of 2024-2029.
The global secondhand luxury market demonstrated a consistent growth, primarily driven by young consumers. The changing consumer buying patterns and habits are bringing about a shift in the conventional methods of shopping, especially in the luxury fashion market. Increasing wealth of high-net-worth individuals (HNWIs), growing awareness about fast fashion, urbanized population opting for high-end fashion accessories, rising issues of sustainability in fashion, increasing popularity of limited capsule collection and fashion drops, and rapid growth of the e-commerce resale sector and online fashion resale marketplace has been positively contributing to an increase in demand for secondhand luxury.
Moreover, diminishing stigma of using pre-owned products, rising demand of affordable pre-owned luxury goods among millennials & Gen Z, and growing number of online resales platforms and luxury brands entering into strategic partnerships to improve the reputation of secondhand products, etc., have been positively contributing towards increased demand for pre-owned luxury products. For instance, on October 05, 2020, The RealReal announced company's partnership with Gucci to launch an online shop featuring pre-loved Gucci items and promote circularity for luxury fashion.
Market Dynamics:
Growth Drivers: The global secondhand luxury market has been rapidly growing over the past few years, due to factors such as increasing wealth and number of high-net-worth individuals (HNWIs), rising demand among millennials and gen Z, rapid urbanization, expanding online recommence, increased access to rare and vintage items, etc. The rapid growth of the e-commerce resale sector and online fashion resale marketplace has been positively contributing to an increase in demand for secondhand luxury accessories via online resale platforms that offer a variety of preowned luxury items, authentication and logistic services, and user-friendly interfaces, making online resale platforms a convenient and appealing option for both buyers and sellers of preowned luxury items, and resulting in an increased availability and accessibility of secondhand luxury through online platforms to a wider audience.
Challenges: However, the market growth would be negatively impacted by various challenges such as presence of counterfeit products. Increased presence of counterfeit products results in reduced market share and revenue loss of genuine sellers, fall in consumer confidence and trust in the authenticity and value of luxury brands, and damage of brand value and differentiation provided by majority of luxury brands in the second hand luxury market, making it challenging for companies to maintain their premium positioning in the market.
Trends: The market is projected to grow at a fast pace during the forecasted period, due to integration of artificial Intelligence (AI) and data analytics, increasing social media penetration, growing acceptance of pre-owned goods, increasing number of luxury brands entering the secondhand market, positive impact on sustainability and environment, rise in digital dressing, etc.
Rising internet penetration, increased use of digital and social media platforms for promotion and advertisement of second hand luxury products, and an increase in the number of influencers and fashion enthusiasts promoting the concept of thrifting by sharing their finds and styling tips to normalize the process of buying and wearing pre-owned luxury items have been positively contributing towards increased awareness of high quality second hand luxury products offered by luxury resale marketplaces.
Furthermore, modern consumers are becoming more conscious of their buying habits and the ethical implications of their choices, and acquiring pre-owned luxury goods aligns with the idea of sustainable consumption and the principles of supporting the concept of circular economy. Therefore, with the luxury consumers becoming more aware of the ethical implications of their purchases, the second hand luxury market will continue to accelerate at a rapid pace in the coming years.
Competitive Landscape:
The US luxury resale market is fragmented, dominated by small local boutiques, smaller consignment shops, and person-to-person transactions with little consumer reach. However, the expanding number of online luxury resale sites has been fundamentally altering the luxury resale sector, causing the market to consolidate.
The key players of the secondhand luxury market are:
- The RealReal, Inc.
- ThredUp, Inc.
- Farfetch Limited
- Alibaba Group (Idle Fish)
- Yoogi's Closet, Inc.
- Vestiaire Collective
- Timepiece360
- The Luxury Closet
- Luxepolis Retail Services
- Garderobe
- Fashionphile Group
- Inseller
Companies in the secondhand luxury market are increasingly engaging in acquisitions, partnerships, joint ventures, and new product development to compliment company's own capabilities, quickly gain access to larger market share and expand into the secondhand market with less investments and more sustainable products. The major players in the market are also collaborating with online market players and resale companies to enhance their e-commerce capabilities and online marketplace to show commitment to sustainability and circular economy.
For instance, For instance, in 2023, Fashionphile also launched a new augmented reality (AR) feature, enabling users to visualize luxury products in their environment before purchasing. Similarly, in 2024, Vestiaire Collective introduced blockchain technology to verify the authenticity of high-end products, strengthening its position in the market by addressing concerns about counterfeit goods.
Key Topics Covered:
1. Executive Summary
2. Introduction
3. Global Market Analysis
3.1 Global Secondhand Luxury Market Analysis
3.2 Global Secondhand Luxury Market Product Type Analysis
3.3 Global Secondhand Luxury Market Distribution Channel Analysis
4. Regional Market Analysis
4.1 Europe Secondhand Luxury Market
4.2 North America Secondhand Luxury Market
4.3 Asia Pacific Secondhand Luxury Market
4.4 Rest of the World Secondhand Luxury Market
5. Impact of COVID-19
5.1 Impact of COVID-19 on Secondhand Luxury Market
5.2 Post COVID-19 Impact on Secondhand Luxury Market
6. Market Dynamics
6.1 Growth Drivers
6.1.1 Increasing Wealth and Number of High-Net-Worth Individuals (HNWIs)
6.1.2 Rapid Urbanization
6.1.3 Expanding Online Re-commence
6.1.4 Rising Demand among Millennials and Gen Z
6.1.5 Increased Access to Rare and Vintage Items
6.2 Challenges
6.2.1 Presence of Counterfeit Products
6.2.2 Uncertain Quality, Scammers, And Tricky Returns
6.3 Market Trends
6.3.1 Integration of Artificial Intelligence (AI) and Data Analytics
6.3.2 Increasing Number Of Luxury Brands Entering The Secondhand Market
6.3.3 Increasing Social Media Penetration
6.3.4 Growing Acceptance of Pre-Owned Goods
6.3.5 Positive Impact On Sustainability And Environment
6.3.6 Rise in Digital Dressing
7. Competitive Landscape
7.1 Global Secondhand Luxury Market: Competitive Landscape
7.2 The US Secondhand Luxury Players by Market Share
7.3 Global Secondhand Luxury Market Players: Business Comparison
8. Company Profiles
- The RealReal, Inc.
- ThredUp, Inc
- Farfetch Limited
- Alibaba Group (Idle Fish)
- Yoogi's Closet, Inc.
- Vestiaire Collective
- Timepiece360
- The Luxury Closet
- Luxepolis Retail Services
- Garderobe
- Fashionphile Group
- Inseller
For more information about this report visit https://www.researchandmarkets.com/r/qpbp74
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