The luxury fashion industry eyes the second-hand market

The market for pre-loved goods now is attracting the attention of designer fashion houses.

By ETX Daily Up / 7 Oct 2022

balenciaga luxury designer fashion industry resale second hand

Share this article

Interest in second-hand shopping shows no sign of waning. After Gucci and Burberry, Balenciaga is the latest to launch its own "Re-sell" program. The program promises to be doubly beneficial for customers, offering access to more affordable luxury gear. Shoppers can also gain rewards in the form of credits or financial compensation.

In just two years, second-hand goods have become an integral part of consumers' daily lives. Shoppers now see them as an ecological — and economical — alternative to traditional purchases. According to a 2021 report from Thredup, the global second-hand market — then estimated to be worth $36 billion — is expected to more than double over the next five years to $77 billion. And, in the United States alone, approximately 33 million consumers bought second-hand clothing for the first time in 2020. Furthermore, these dizzying figures have not escaped the attention of the luxury industry. More and more luxury brands are now intent on launching its own programs.

Luxury brands are now taking a new direction by proposing systems allowing customers to buy or resell items from past collections. They are already present on platforms specially dedicated to the second-hand market, such as Vestiaire Collective or Collector Square. Meanwhile, with Vault, Gucci is one of the brands that has innovated in the second-hand sector. They developed a platform that sees the brand itself offering vintage pieces reconditioned by artisans. Other houses, including Burberry and Stella McCartney, have partnered with specialists in the genre, such as The RealReal, to encourage customers to give a second life to their clothes.

A flourishing market for pre-loved luxury goods

1/1

Now Balenciaga, one of the most popular brands in the world, especially among younger generations, is following suit with its "Re-sell" scheme, developed in collaboration with Reflaunt. This is the luxury house's own program, which offers consumers the opportunity to resell clothes and accessories from past seasons, and to benefit from a form of compensation — in the form of money or credit — allowing them to buy new items at (significantly) reduced prices.

Already accessible on the Balenciaga e-store, the program is quite simple to use. All products being resold can be dropped off at a selection of participating stores or collected through a scheduled service available online, allowing sellers to receive their financial compensation or credit to be used in-store. All items for resale are then documented, authenticated and professionally photographed, and then evaluated and listed on Reflaunt's global network. The system is currently operational in Italy, France, the United Kingdom, the United States and Singapore, says the company on its website.

With this initiative, Balenciaga joins the many luxury brands that are embracing the second-hand market to reduce the whole industry's impact on the environment, while also tapping into a market that seems to be increasingly flourishing. For consumers, it's a way to access more affordable luxury pieces, but also to get rid of old or unworn pieces without harming the planet.

Related: This Singaporean fashion designer pushes the boundaries of the classic shirt

Fashion, luxury, Resale