Recommerce in Luxury: How Luxury Brands Are Conquering the Secondhand Market

Recommerce in Luxury How Luxury Brands Are Conquering the Secondhand Market

With Gen Z and Millennial consumers making up a third of luxury shoppers, the market is increasingly influenced by their core values — sustainability, affordability, and exclusivity. 

As such, luxury brands have had to become more environmentally conscious, showcase their authenticity, and — most significantly — embrace recommerce and the secondhand market.

What Is Recommerce and Secondhand Luxury?

Recommerce, or “reverse commerce” is the selling of pre-owned goods. It’s particularly popular for secondhand luxury fashion, with purchases driven by the scarcity of discontinued pieces, as well as cost savings.

Previously, secondhand selling was limited to flea markets, Goodwill stores, or yard sales. Then came the rise of secondhand marketplace apps, such as eBay, Depop, or Vinted, where consumers can sell directly to other consumers. 

More recently, we’ve seen the rise of recommerce platforms where you can buy secondhand luxury goods that have been certified, cleaned, and restored back to a condition that’s as good as new. 

Vestiaire Collective is probably the most well-known of the secondhand platforms, receiving 411,000 downloads in November 2024 alone. Its biggest surge of downloads was seen during the global pandemic when secondhand was trending, with more than 900,000 downloads in May 2021. Not to mention Vestiaire Collective’s prominent feature within Emily in Paris, a hugely popular Netflix show that centers around luxury brands. 

Why Is the Secondhand Luxury Market so Popular?

The time when secondhand or thrifted fashion was considered “uncool” by luxury consumers is now a distant, hazy memory. If anything, many prefer pre-owned to brand-new. In fact, by 2028, the market revenue for secondhand luxury goods is projected to double in size and reach a value of $15.4 billion.

So, it’s out with the new, in with the old. But here lies the question: what’s driven this seismic market shift?

In short, consumer values. As generations have passed down spending power to younger demographics like Millennials and Gen Z, it’s now their turn to dictate the market. And with concerns about the planet and economy, they’re seeking change. But change isn’t always about newness, sometimes the answer has been there all along. Sometimes, it’s secondhand! 

IT’S MORE ACCESSIBLE

Shopping through recommerce allows consumers to purchase designer products at a more affordable price. While luxury brands may have once frowned upon the democratization of luxury fashion, third-party resale platforms took it out of their hands. 

As it turns out, secondhand luxury didn’t cheapen designer brands or products. If anything, it’s been rebranded into a much more positive thing. It’s not only more sustainable, but it’s a vintage find

Plus, with younger demographics like Gen Z and Millennials taking on a tougher economy than generations before, they’re always seeking to save money where possible. 

IT’S MORE EXCLUSIVE

What’s more exclusive than luxury products that are sold at a high price point in limited numbers? Products that were sold at a high price point in limited numbers 10 years ago. Those would be far more scarce than anything that’s available to buy today. 

IT’S AN INVESTMENT

Thanks to the rarity of luxury items, they can actually increase in value over time. Take the Hermes Birkin bag for example. As one of the most exclusive pieces on the market today, this iconic handbag is actually considered a viable financial investment. 

IT’S MORE SUSTAINABLE

The discussion around fashion and sustainability has ramped up in recent years. While fast fashion tends to be the focal point, luxury fashion is still held accountable by consumers. 

Shopping through reverse commerce is a much more sustainable option for conscious consumers looking to reduce their carbon footprint. It reduces waste, reduces the demand for new products that require the planet’s resources, and keeps existing items in circulation and out of landfills. 

IT’S TRENDING

Vintage is the new black. All over social media, you can see the rise of influencers promoting thrifted or secondhand fashion finds over new goods, with some accounts dedicated to shopping pre-owned. 

However, unlike most social media trends, this one has stuck around, with the demand for secondhand continuing to climb over the last decade. 

How Luxury Brands Are Conquering the Secondhand Market

The rise in recommerce presents a new opportunity for luxury brands to extract even more profit from products they’ve sold before. Rather than leaving luxury resale up to third-party platforms, brands can find ways to reclaim their own products and then sell them on again, claiming their own stake in the secondhand luxury market.

Here are some of the brands that are entering the secondhand market and their strategies. 

COACH RELOVED

At the heart of Coach’s resale messaging is sustainability. On their site, their first message is “make fashion circular” followed by a description of how they’re “introducing a new, circular way to Coach inspired by our commitment to a better-made future.” They even share statistics on how more than 85% of unwanted clothes and bags end up in landfills and how, together with their customers, they’re working to change that. 

Their messaging pulls away from commonly used terms like ‘reused’ and rebrands it to “(Re)Loved,” along with terms like “reimagine” and “Wear it, love it, pass it on.” This emotive wording helps position Coach’s resale platform as a sustainability initiative that increases the value of their products. 

How does it work?

Customers bring their Coach bag to the store to see if it’s eligible for a trade-in. If it is, the customer receives store credit (the amount varies based on the bag’s condition). The bag will then be “refurbished, reimagined, or recycled” and resold by the brand. 

GUCCI'S TRADE-IN FOR STORE CREDIT

Gucci’s resale strategy sees them partnering with recommerce giant Vestiaire Collective, on a program called Preloved with Vestiaire Collective

This iconic heritage brand has leaned into the timeless nature of luxury and designer goods, emphasizing how its products are timeless and seasonless. As many luxury brands craft their messaging through the power of storytelling, describing the origins of their brands and products, Gucci have woven their Preloved strategy into the end of this story. They describe the handbag as something that can be “discovered, again and again, preserving, sharing, and expanding that relationship with a like-minded community, for many years to come.”

They also describe the program as a solution for their “ever-growing, eco-conscious clientele.” 

How does it work?

Customers can exchange Gucci bags for store credit, either online or in selected Gucci boutiques.

ROLEX CERTIFIED PRE-OWNED

Rolex focuses its Rolex Certified Pre-Owned (RCPO) program on how its products are “built to last.” As authenticity is often an issue when it comes to luxury resale, Rolex reassures its customers that all products purchased through RCPO are “certified as authentic, fully serviced, and guaranteed by the brand.” It even comes with a “special Rolex Certified Pre-Owned plaque.” 

They frame the scheme as an extension of their commitment to sustainability, where they use “the most robust materials” and “most reliable calibers” to resist wear and tear. The RCPO watches are fully serviced and, where necessary, repaired with replacement parts. The customer can therefore be assured that the pre-owned watches are of the same standard and quality as a brand-new Rolex, with a two-year guarantee. 

How does it work?

While Rolex doesn’t disclose trade-ins or exchanges on their website, they share how you can purchase a pre-owned watch from one of their stores. 

BALENCIAGA RE-SELL PROGRAM

Balenciaga has partnered with Reflaunt in a program that assists customers with re-selling “pre-loved” Balenciaga pieces to let customers become a part of the “circular fashion revolution.” 

Their re-sell page is to the point, listing five benefits of reselling through their program:

  1. Seamless experience

  2. Highest payout

  3. Faster selling

  4. Instant reward for iconic pieces

  5. Using circular

How does it work?

The program allows customers to sell pre-owned Balenciaga clothing and accessories in exchange for store credit. Their partner Reflaunt then authenticates the pieces, professionally photographs and prices them. The pieces are then listed on more than 25 secondary marketplaces, including Vestiaire Collective and Tradesy.

KEEP UP WITH THE EVER-EVOLVING LUXURY MARKET

Secondhand luxury is surging in popularity thanks to its accessibility, sustainability, and exclusivity. As a growing market, luxury brands are tapping into resale to claim back even more value on their products, without having to make more. 

The luxury market is constantly evolving, with brands needing to continually innovate and keep up with ever-changing consumer demands. To stay ahead, it’s essential to work with specialist luxury partners like Block & Tam, the experts in data-driven luxury marketing. 

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