Luxury and Second-hand: The New Priorities of Consumers (Part 1)

Over the past three years, the world has faced a series of geopolitical crises leading to a clear economic slowdown. Europe, severely impacted by inflation and the European Central Bank’s interest rate hikes in recent years, avoided economic recession. For the luxury sector, which had been enjoying a fruitful period, 2023 marked a return to normal with declining figures for most luxury houses. Did the second-hand market follow the same trend?

According to a report by consultancy Bain & Company published in January, the global market for second-hand luxury goods reached €45 billion in 2023. This market, which has nearly doubled in size in just four years, now represents 12% of the value of the new luxury goods market, compared to only 7% to 9% in 2020. Europe, just ahead of the United States, remains the most significant market, accounting for about 45% to 50% of global sales of second-hand luxury goods. However, the American consultancy firm notes a slowdown in growth for second-hand sales, from 4% to 6% in 2023, due to a 4% increase in the primary luxury market that same year. Analysts suggest this may indicate a normalization of the pre-loved market, a trend observed the previous year.

The segment of second-hand watches and jewelry, also known as hard luxury, is considered the driving force of this market, still representing more than 80% of the total market, according to the same study. This segment benefited from significant speculation, mainly due to supply chain issues in the primary market and the influx of investors whose wealth was made in cryptocurrency and stock markets. It eventually stabilized with prices revised downward after the bubble burst. Meanwhile, the leather goods segment, estimated at $1.8 billion in 2022, continues to grow and could even become the top revenue-generating segment of the market by 2028, reaching $4.3 billion, according to a Statista study