Luxury Resale Weekly Round-Up
Keeping you updated on Luxury Resale & Circularity with a weekly article best-of from October 26th to November 1st.
The resale week in articles
1. I’m gonna pop some tags 😎
Like Macklemore was preaching back in 2012, thrift shopping is the cool way to shop.
Refinery29, went deep into the minds of Gen Z second-hand operators in a superb investigation article.
Guess what? It’s not shopping, it’s a way of living, and backed by strong data as well — Depop’s 15 million users in 2019, 90% were under the age of 26.
(https://www.refinery29.com/en-us/2020/10/10014753/thrifting-gen-z-thrift-shopping-trend)
2. Who’s joining the pool? 💁♂️
As predictions made it clear about 2 years ago, Brands & Retailers couldn’t miss the resale revolution.
If the question was in what model, it appears to be clear now. Brands want to play in the Consignment pool.
As Fox stated — Luxury Brands are getting thriftier. But it is far more than short-term revenue. It’s also about creating brand affinity sooner, connecting with the new generation, positioning inside the sustainability sphere.
In one form or the other “every brand will eventually participate in the secondary market, whether it’s through incorporating trade-in and trade-up programs or partnering with recommerce to allow their customers a way to partake in the circular economy.” according to Ben Hemminger, the CEO Fashionphile.
(https://www.foxbusiness.com/lifestyle/how-luxury-brands-are-tapping-into-consignment-and-winning)
3. Bags are booming 📈
It looks like “Everyone Is Buying Designer Handbags for the Apocalypse”.
Luxury Handbags are the perfect match for your stay-at-home Leisurewear outfit.
As reported by Instyle, “Over the last seven months, luxury resellers reported major increases in sales of some of their most expensive items, including the Hermès Kelly bag (in the $25,000 range), the Louis Vuitton Eva bag (which can go for $1,200), and the Chanel Double Flap Bag (as much as $4,000).”.
And is not sales for sales, the items are also raising in valuation, as true investment pieces, with bags raising from 750$ on retail to 2000$ on resale.
(https://www.instyle.com/fashion/luxury-resellers-handbags-pandemic)
4. Are you really sustainable? 🤔
Consumers are not buying the sustainability narrative that easily.
According to WWD latest article, only 20 Percent of Consumers Trust Brand Sustainability Claims.
There’s a term for it already — Greenwashing (I didn’t know about it, ok?) — and apparently “ The gamble of greenwashing does not pay off,” according to Abbie Morris CEO of Compare Ethics.
High Street Fashion is in the eye of the hurricane, ranking as one of the lowest category in sustainability trustworthy.
Consumers want the authentic, but they also need help in authenticating what authentic means.
(https://wwd.com/sustainability/business/greenwashing-fashion-sustainability-compare-ethics-1234626171/)
5. The new uncertainty 🥵
How will the consumers cope with new government restrictions imposed to prevent the spread of the virus?
When everybody was eyeing what would the post pandemic behaviour look like. It seems we’re about to witness the continuation of the pandemic behaviour.
What will consumers value? How will consumers shop during Christmas? What will be the impacts across the globe?
The answer is uncertainty. but we have some lights shed by Mckinsey, on the latest Consumer Sentiment & Behaviour report. A must read.
(https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19#)
Thought of the week
Now what? The Luxury industry proved more resilient than ever during the pandemic months. Resale leaving the arena as a clear winner. But it looks like the future is no better than March or April, at least for Europe and the US. Will Luxury become even more China dependent?
We don’t know. But one thing is for sure — Value, Quality, and Purpose remain top of the charts for consumers worldwide.
Share of wallet was also an allie for Luxury and Resale. as we saw that consumers were replacing travel experiences for unboxing an Hermès experiences. Will this trend stick?
With interesting months ahead. Christmas will already be a great platform for us to understand how the consumer dynamics impact Resale and the Luxury industry.
This is it for this week! Stay tuned for the week ahead 😎
GG
