The Rise of Preloved Fashion Economy
The Rise of Preloved Fashion Economy
From youtubers, to bloggers, to Netflix streaming, these days it seems that most people are talking about the future of resale market. The preloved fashion industry provides a good option for customers to purchase high-quality items for a much less price.
The Preloved fashion industry has caused a noticeable growth in consumers’ attitude toward luxury. People are now understanding that luxury is an investment.
According to Boston Consulting Group, the luxury preloved fashion industry is growing four times faster than the primary luxury market, at 12% per year as opposed to previous years of 3% per year. Circular economy is another huge derive of the luxury resale growth, fueled by young buyers and their need for more sustainability.
Recently an online platform for GCC fashion stated the reasons for the growth in luxury resale, identified aspects such as digital, affordability, collectability and the generation shift; Further explained below.
Digital: Meaning that online luxury preloved platforms are transforming the preloved market by offering seamless experiences, with a certified preloved brand and product assortment.
Affordability: States that luxury preloved markets provide shoppers with the ability to access luxury pieces at affordable prices.
Collectability: The joy of purchasing through a preloved market counts as a routine change to buyers for them to purchase previous season collections, vintage items, limited-edition releases, or sold-out exclusives.
Generation Shift: The change in the mindset of the new generation of buyers (Gen-Z) toward purchasing more investment has changed. When purchasing a luxury item, they know that it would only hold between 50%-70% of the original cost through resale.
There are two reasons behind luxury buyers shifting purchase behavior:
- Shoppers are seeking sustainability.
- Experiential luxury: Which is when a customer desires access to a luxury item, however, does not wish to own the luxury item forever.
Combined with the need for sharing styles and luxury outfit of the day (OOTD) on social media, luxury buyers are turning towards the preloved fashion industry.
As attitudes toward ownership and sustainability continue to evolve, the movement of luxury resale market will most likely to rise.