When it comes to a luxury brand that has moved into resale, 54% of new-product purchasers questioned agreed that their impressions of its desirability would stay good or, as long as the customer experience was constant. Only 5% of those polled disagreed with the assertion.
Of the new product buyers surveyed, that sell pre-owned products in the future, while 46 per cent agreed with the following statement: “brands directly selling or supporting shops/platforms that sell used product will not change my perception of brand.”
A McKinsey analysis found that luxury brands might benefit from exploring the fast expanding resale market, which not only provides a new source of money, but also has the potential to increase brand loyalty and customer desire. During the next decade, the worldwide luxury resale market is predicted to rise at a pace of 10% to 15% per year, according to this projection.
It’s important to keep each country’s market is unique, as noted in the research. As a matter of fact, whereas customers in France and the United States were overwhelmingly favourable in their replies to the aforementioned were overwhelmingly negative. It has been shown that 41 per centshoppers acquire second-hand things because they can get their hands on rare or out-of-production items. More than a third (36 percent) of those polled said they chose to buy pre-owned because they wanted to save money or because they couldn’t afford the thing they wanted.
Reselling a luxury item is a significant consideration for firms considering resale, since nearly purchasers are also resellers. 41 percent of resellers sell their pre-owned stuff in order to clear up closet space, while 36 percent say they’ve evolved.
There are a number of ways luxury brands looking to expand their market share into resale could do so: by focusing on a particular customer segment, organising the market more effectively for collectors, or facilitating consumers who want to trade in their old items for new ones.