The latest publication from Hamburg-based market research company yStats.com titled “Global Luxury Fashion Online Recommerce Market 2023” shares insights into the developments of the overall recommerce market worldwide, with a focus on online recommerce. It also provides an overview of consumer attitudes towards these services and recent metrics of the leading online recommerce platforms.
yStats.com announces strategic data partnership with FASHIONPHILE, enabling access to select company data for enhanced business insights: “FASHIONPHILE is delighted to participate in the 2023 yStats global luxury online re-commerce report. Our dedicated team takes pride in providing insightful statistics on the luxury e-commerce industry to colleagues and peers, and partnering with yStats has been an excellent platform to do so” said the CMO of FASHIONPHILE, Sophia Tsao.
Younger consumers drive luxury fashion online recommerce
According to yStats.com, the global resale apparel market is projected to almost double by 2026, indicating a rising consumer interest in fashion recommerce. The secondhand luxury market is also experiencing significant growth, with a forecasted market size crossing the EUR 40 billion mark by 2025. Younger generations, including Gen Z and Millennials, are the main drivers of luxury fashion online recommerce, accounting for around one third of luxury shoppers purchasing and selling secondhand goods.
Luxury brands are jumping onto the resale trend
In the U.S. alone, the number of fashion brands participating in online resale programs has skyrocketed, with the number reaching close to 130 as of February 2023, growing from a single digit number to a triple digit one. Furthermore, the most popular luxury brands consumers in the U.S. purchased pre-owned were well-known luxury fashion brands like Louis Vuitton, Gucci, Chanel, Dior and Prada, of which most saw significantly growing sales on multiple luxury fashion online recommerce platforms.
Top reasons for resale vary greatly by country and region
Global luxury shoppers have different reasons for purchasing fashion secondhand. The main motivations include accessing hard-to-find or discontinued items and saving money. In Europe, the primary driver for recommerce is the reduction of waste, packaging, and plastic, emphasizing sustainability. Additionally, a significant portion of eBay sellers in France and the UK mentioned closet cleaning as a top reason for selling pre-owned fashion. The luxury resale market in China is projected to achieve a Compound Annual Growth Rate (CAGR) of almost 33% between 2020 and 2025. Secondhand luxury goods trading platforms are the most commonly used channels for purchasing pre-owned luxury items in the country. Moreover, eBay sellers in Japan reported a double-digit percentage increase in sales due to the current economy, indicating a growing shift towards recommerce in the Asia-Pacific region.
Ultra-luxury resale platform Fashionphile experienced major growth in sale prices and sale increases
With the growing luxury recommerce demand worldwide, U.S. based ultra-luxury resale site Fashionphile displayed significant increases of sale prices among various products and brands worldwide. Products such as Chanel’s “Small” and “Medium Classic Flap” bag sale price on Fashionphile saw tremendous growth.
Additionally, the sales volume growth of top luxury brands like Hermes, Chanel and Louis Vuitton all saw a mid-range to high double-digit percentage growth from 2021 to 2022, displaying the rising consumer interest in luxury resale. Not only fashion was of interest, but luxury accessories also increased in popularity and price on Fashionphile. As such, the Tiffany HardWear Link Bracelet experienced an annual growth of almost 300% in 2022, followed by jewelry like the Van Cleef & Arpels Alhambra bracelet and the Cartier LOVE bracelet.
Fashionphile faces intensifying competition from other companies such as The RealReal, ThredUp, Vestiairecollective.com, among others. Furthermore, Vestiairecollective.com merged with Tradesy, the U.S. recommerce platform further expanding its product catalogue to close to 5 million secondhand items. The RealReal is among the top in the industry, with total revenue of more than EUR 500 million as of 2022, making it among the largest online luxury resale platform. The company also witnessed a rising demand for affordable and trendy luxury bags against the backdrop of rising prices with brands such as Valentino, Prada, and Dior among others seeing a rise in their sales. Additionally, ThredUp along with its partnerships with sustainable companies such as AZEK Company that produces ecofriendly outdoor living products is also an emerging online recommerce marketplace.
Overall, the yStats.com report highlights the growing significance of the global luxury fashion online recommerce, driven by younger consumers and their changing attitudes towards secondhand luxury goods. As the market continues to evolve, competition among leading recommerce platforms intensifies, showcasing the expanding opportunities in the luxury recommerce sector worldwide.
As part of its commitment to fostering knowledge sharing and industry growth, yStats.com is offering a complimentary short version of the report to interested parties, besides the possibility to purchase the full report. This free edition will grant access to valuable insights and trends shaping the luxury recommerce landscape.