Customers Want Luxury and Vintage
Re-commerce is having a moment. Traditional retail has entered a stage of growing pains in which it will take some readjustment to get back its momentum. On the other hand, resale has had steady growth in the last few years. There are some factors to attribute this to such as technology that supports C2C business and changes to consumer spending. Re-commerce technically includes the resale of secondhand goods ranging from clothing to home items to sports gear. But, almost half of all re-commerce sales are derived from apparel, shoes and accessories, particularly from the luxury market.
Luxury & Vintage Reign Supreme
C2C is has been steadily growing for years. From Poshmark to LetGo and even Craigslist, people are selling their pre-loved items and giving them new life. With that being said, in regards to the resale market, the place with the most growth are luxury and vintage. The Real Real has been at the top of the game for a couple years now with their extensive selection of gently used designer goods. In addition, ThredUp, their closest competitor just launched Luxe their luxury division of their consignment site. So why are people shelling out these items? It turns out, these sites and many others are beginning offer authentication services that protect buyers from counterfeit goods. For years that has been the bane of the luxury goods industry’s existence.
Another facet that has boosted the demand for the retail market is vintage clothing. Sourcing Journal Online reports that there has been a 60 % boost in vintage sales. The reason behind this is two-fold. The first one is personalization. In this world driven by social media, once a look is over-saturated by likes and the popular pages it’s too mainstream to be coveted by those who thrive on being on the forefront of fashion. Nowadays fashion shows are live-broadcasted by editors, influencers and attendees alike. For quite sometime before the new styles hit stores, they have already been consumed by the masses. This has killed the anticipation that used to surround new collections. People are looking for something a little more timeless. This is when vintage enters the picture.
It is reported that resale will jump from the $18 billion it was in 2016 to $33 billion by 2021. There’s no stopping re-commerce from reaching its peak growth with the changes to consumer behavior that have already taken place. Luxury and vintage goods are in higher demand then ever and the new platforms in which they are accessible to the masses are increasing. Thus driving growth to an all time-high.