We’ve recently looked at some of the innovative ways that luxury retail brands like Chanel and Gucci are harnessing new digital tools to reach consumers during the Coronavirus pandemic.
An important component of the luxury market goes beyond just marketing and advertising and extends into the secondary market of luxury resale, including consignment and auction sites.
By some measures, luxury resale is growing four times faster than traditional luxury retail. Far from being a threat, these secondary markets are a key way for legacy brands to develop a new, younger customer base, and earn their loyalty over a lifetime.
Below, we’ll look at some of the reasons for this growth — and the opportunities for savvy companies.
Cultivating the New Generation of Luxury Consumer through “Pre-Owned” Goods
Luxury resale through authenticated luxury consignment platforms like The RealReal offer a lower barrier to entry to younger consumers.
Well-established legacy brands such as Chanel, YSL, and Louis Vuitton prove perennially popular, demonstrating the attraction of a high quality luxury purchase at a lower price point.
Today’s younger luxury consumers are also “social shoppers.” Many of the popular resale platforms function in a sense like social networks:
- Fashionphile allows buyers to acquire authenticated secondhand handbags and accessories from an array of well-known designers.
- Vesitaire Collective is a resale site with millions of members that is also a favorite of fashion magazine editors for its wide selection of contemporary high end designers.
- HEWI (Hardly Ever Worn It) is similar to Ebay, and it lets users list their preowned luxury goods.
- Luxury Rewind is one of many sites specializing in the burgeoning field of vintage luxury resale of the likes of Celine, Yves Saint Laurent and Chanel.
Sustainability: as millennials and Gen Z consumers demonstrate that socially responsible purchases are more and more important to them, resale is a fun and environmentally friendly means of self-expression.
Online Auctions Rack Up Big Prices for Pre-Owned Items
eBay was an early pioneer of the online auction space since the birth of the Internet, tempting consumers to bid on memorabilia, apparel and even automobiles. But there has been for years a dearth of truly high-end product in the digital space.
Sotheby’s has been trying to change that with a robust, full-featured app that allows consumers to easily participate in auctions that start at a few hundred dollars and can range into the millions.
The app is helping Sotheby’s navigate the COVID era. A recent exhibit, recent ‘Contemporary Curated’ was planned for London, but because of the COVID pandemic, was promoted and conducted online, resulting in an online record sale for George Condo’s massive painting Antipodal Reunion for £5,097,250 ($6,401,127) This painting sold for far above it’s pre-auction estimate of £3,435,900 showing the strength of digital channels for the sale of high end luxury items.
Cutting Edge Use of AI and Other Emerging Tech in the Secondary Market
Sotheby’s is one of the brands leading the way in the implementation of artificial intelligence and augmented reality through their app development — and not a moment too soon with a virus pandemic cutting off the ability for consumer to view items in a gallery or real estate up close.
The Sotheby’s auction app employs VR to allow a user to view an auction item in several different contexts. Sotheby’s real estate arm is using a heavy investment in VR to beef up viewing possibilities of properties around the world — sure to be a boon in these socially distanced times.
How ACCUR Works with Luxury Resale
ACCUR Recruiting Services has deep experience with the luxury retail industry and the digital, e-commerce and startup spaces, including luxury resale. Contact us to discuss your needs.