Pre-Owned Luxury: Why This Hot Market Needs Top Talent Now
What is the pre-owed luxury goods market?
The luxury resale market has a long history, with specialty retail and vintage shops long selling expensive designer handbags, coats, fine watches and jewelry. High end luxury resale has also been in the hands of auction houses like Sotheby’s and Christie’s.
The introduction of digital platforms to this space like the RealReal has completely transformed the industry and brought in a whole new generation of customers to the fold. Now, individuals can use search engines to find the perfect Chanel Bag or Manolo Blahnik shoes at a steep discount. And a number of companies are on hand to find profit in these new companies and opportunities is exploding.
Top Players in the Pre-Owned Luxury Resale Market
Luxury resale can be looked at in terms of tiers:
- At the top end, there are auction houses like Sotheby’s and Christie’s which typically sell to ultra-high-net-worth individuals but are also keen on using emerging digital tools to reach a wider audience.
- Mid-tier operations: dominated by the RealReal, there are also a growing number of specialty online retailers such as Rebag, Vestiaire Collective, Depop and Sign of the Times.
- Classic outfits like Ebay.com.
- Rental companies: like Rent the Runway, Cocoon Refresh, By Rotation and Rotaro.
Top Products in the Pre-Owned Luxury Market
Some of the top items traded in luxury retail include:
- Watches: Fine watches by the likes of Rolex, Omega and Patek Philippe are considered works of art and are collectible and therefore have a strong resale value and a number of dealers who sell them.
- Handbags: Iconic bags by Chanel, Louis Vuitton bags, and Hermès can cost many thousands of dollars new and hold their value well in resale.
- Shoes and apparel: Sites like Rent the Runway are putting high end designer apparel within the reach of ordinary consumers and in turn creating a demand for well made used designer pieces for purchase.
Why is Luxury Resale Booming Right Now
The boom in luxury resale, especially online, is a confluence of factors:
- The interest in younger consumers in legacy and traditional brands through their awareness of those brands in pop culture like music.
- Consumers who want to pursue more sustainable fashion choices.
- Budget minded consumers who are mindful of inflation and looking for good buys.
Where is the Luxury Resale Industry Going?
We think that beyond the growth of platforms that can sell used luxury goods to consumers, there is a great deal of opportunity in the luxury resale space to consolidate items for sale across platforms and appeal to dedicated buyers.
We also think that, as in traditional luxury retail, there is a value in the bricks and mortar experience, and we expect to see more innovation in that space as well.
Top Skills Needed in Pre-Owned Luxury Market
Some of the key skills we see requested by luxury retail and resale companies:
- Head of E-commerce: also know as a a director of e-commerce or VP of e-commerce is a cross-disciplinary position that develops and directs the execution of all aspects of the e-commerce strategy for a brand. A strong head of e-commerce needs a blend of marketing, technology, and management skills, along with a strong understanding of trends pertaining to social media and so-called “social selling.” More on this position>>
- Executives with Amazon-specific skills: The pandemic taught luxury sellers the power of the “lipstick effect,” that is, customers are happy to add in a small luxury item or two into a more quotidian purchase of groceries or toilet paper if it gave them a brief hit of dopamine. For that reason, they are increasingly seeing Amazon as an important component of sales and marketing. More about Amazon and luxury beauty>>
How ACCUR Serves the Digital Needs of Luxury Retail
ACCUR Recruiting Services has deep experience with the luxury retail industry and the digital, e-commerce and startup spaces. We will work with you to find the right executive talent for all of your digital needs, whether that is in marketing, branding, influencer marketing or social media. Contact us to discuss your needs.
