If earlier buying a used bag or watch was associated with niche sites, today resale has become a full-fledged industry with a developed infrastructure – from online marketplaces to specialized offline boutiques, writes The Wall Street Journal.
Buyers view such purchases not only as a way to save money, but also as an investment: iconic handbag models, rare watches and limited collections often retain or even increase their value.
Two sides of the coin
For luxury houses, however, this trend has a double effect. On the one hand, an active secondary market confirms the high value and liquidity of their products. On the other hand, the mass availability of second-hand goods at lower prices can reduce demand for new collections and dilute the sense of exclusivity that is at the heart of a luxury brand.
The issue of quality control and authenticity poses an additional challenge. Independent platforms are not always able to guarantee 100 percent authentication, which increases the risks of counterfeiting and can damage brands’ reputations. In addition, companies have little control over pricing in the secondary market, making it difficult to manage the overall positioning strategy.
Brands are taking second hand into their own hands
In response to these challenges, some brands are beginning to integrate resale into their own business models. Possible strategies include launching branded buy-back programs, creating official online resale platforms, and partnerships with major resale players.
This approach allows brands to control the authentication process, shape pricing and maintain direct contact with the customer even after the initial sale.
Experts note that resale can become a tool for building audience loyalty rather than a threat. Young consumers – especially members of generations Z and Millennials – are positively perceiving initiatives to extend the life cycle of goods and reduce the ecological footprint. For them, transparency, sustainability and the ability to consume wisely are becoming important factors in choosing a brand.
Thus, the luxury resale market presents both significant challenges and strategic opportunities for the industry. Brands that manage to find a balance between maintaining exclusivity and adapting to new consumer expectations will be able to strengthen their position in the transforming global luxury market.
