Secondhand Market & Luxury Industry: Why You Should Dive Into It
Despite most luxury consumers still being strictly new-product buyers, secondhand shopping is on the rise. The secondhand luxury market, estimated at $25–30 billion in 2020, is expected to have an annual growth rate of 10–15% over the next ten years! This luxury resale trend has been boosted by the pandemic, the success of specialised digital trading platforms, and the shift in consumer buying habits.
What Makes Luxury Consumers Buy Pre-Owned Products?
Last November, McKinsey conducted consumer research in North America, the EU and Asia, concluding that the luxury resale market is indeed a great opportunity for brands. What attracts buyers of both pre-owned and new luxury goods the most are access to rare in value, exclusive products and contribution to greater sustainability in the luxury industry. One-third of buyers also prioritise affordability.
Brands Engaging in Luxury Resale
Remember about pre-owned luxury cars? Today, buying one comes with premium service, including certification and guarantees; customers receive the same exclusive treatment, just like new-car buyers.
It’s no big surprise that luxury high fashion brands are dipping their toes into the waters of luxury resale, too. In 2020, Gucci partnered with TheRealReal for recycling, upcycling and reselling the brand’s garments. The cherry on top of that collaboration is that for every Gucci item purchased, TheRealReal plants a tree through One Tree Planted, a non-profit organisation focused on global reforestation.
Brands’ engagement in the secondhand market is also a way to reinforce craftsmanship, durability, and sustainability. Their involvement can raise the market value of pre-owned products, as well as help reduce counterfeiting.
LuxFi Joining the Game
Now that it is clear that the secondhand luxury market is a promising, long-lasting opportunity, it is up to brands to decide whether to be in or out. In the meantime, LuxFi offers the first-ever NFT marketplace backed by physical assets. Our marketplace is a true game-changer for luxury brands and customers to consider. With LuxFi, users are provided with a new and innovative way to buy, sell and invest in luxury goods of all types, including resale luxuries.
We stand for sustainability and consider it crucial to add meaningful value to our users’ experience. Dive into luxury resale with LuxFi!
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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