The Luxury Resale Revolution

Brands like Valentino and Rolex have implemented their own buyback initiatives, and strategic partnerships between Gucci and The RealReal, as well as Alexander McQueen and Vestiaire Collective, aim to help customers resell their luxury items and foster circularity.

However, despite the market’s growth, the luxury industry has been cautious about embracing resale due to concerns about counterfeits and the potential impact on the perceived value of their products. On the other hand, sustainability is becoming a baseline requirement for purchase, especially for environmentally conscious Gen Z and Millennial customers, who are 27% more likely to buy sustainable products than older generations. Therefore, entering the resale market positions brands as environmentally responsible, contributing to waste reduction and promoting more sustainable practices.

Offering resale options has the power to enhance customer loyalty and engagement, as they are more likely to purchase a new item if they can resell it through a trusted platform in the future. Technology companies like Reflaunt – whose partners include Balenciaga and Net-a-Porter– are making it easier for customers to sell items either directly on brands’ websites or via secondhand resale channels, providing a seamless process from inspection to digitization. Customers can choose to drop off their goods in-store or book a home pick-up and get shopping credits or cash in return. “It’s a loyalty opportunity for brands because customers are brought back to the store, and having a curated pre-loved section on their site also helps with customer engagement,” explains Chief Commercial Officer Sofia Gazzotti.