Second-Hand Luxury Goods Market, Consumers Save Money Instead of Spending Tons of Money on Luxury Stuff
Second-Hand luxury goods industry is a growing industry across the world. The population is getting affluent with time and want to spend more on activities that can make their lives luxurious. The luxurious goods such as watches, jewelry, designer clothes, and others have been a symbol of the status of the wealthy population. However, over time the living cost around the world has increased and this has forced people to change their spending pattern. Rising education, housing, groceries and utilities cost are the key reasons which have led consumers to adopt cheaper alternatives such as Second-Hand goods. Second-Hand goods are witnessing great demand across the globe, especially in developing countries such as China, India, and others.
Luxury goods reselling idea was being appreciated across the globe through pawn shops, vintage stores, and other offline stores, but the online stores reselling luxury goods is the new trend in the Second-Hand luxury goods market. The number of online start-ups selling Second-Hand luxury goods has increased in recent years. These online resellers have transformed the Second-Hand luxury industry by acting as a mediator between luxury sellers and buyers. Some luxury resellers such as The Real Real, Luxury Closet and others are predicting huge growth opportunity for Second-Hand luxury goods market in upcoming years.
Growing online sales channel are boosting the value of second-hand luxury items. It’s a lucrative market where luxury products such as channel bags, Rolex watches, and other such products can be found at amazing prices. As a result, it is not surprising to see shopping habits for Second-Hand luxury goods moving away from traditional channels to online channels and especially in the emerging countries where there is fluid infrastructure development and sharp consumer price sensitivity.
As per KD Market Insights research, the global pre-owned luxury goods market is expected to witness robust growth over the next five years to reach an estimated value of USD 52,276.9 Million in 2024. The global Second-Hand luxury goods market is expected to expand at a CAGR of 12.0% in the terms of value during the time period i.e. 2019-2024. Global Second-Hand luxury goods market is likely to be driven by several factors such as raising brand awareness, strong affordability, growing affluent population, and others.
The global Second-Hand luxury goods market has been segmented on the basis of product type, demography, and distribution channel. The Second-Hand luxury goods product type market is segmented into clothing, footwear, bags, jewelry & watches and accessories. In terms of value, the global Second-Hand luxury goods market for bags segment was valued at USD 17,300.0 Million in 2018. Moreover, the global pre-owned luxury goods market for bags segment is expected to achieve the absolute $ opportunity of USD 13,903.5 Million between 2019-2024.
In the distribution channel segment, the Second-Hand luxury goods market is sub-segmented into online stores and offline stores. The global pre-owned luxury goods market for online stores segment is expected to expand at a CAGR of 14.9% in terms of value over the forecast period i.e. 2019-2024.
Rising Sales of Clothing & Footwear Segment
The Second-Hand luxury fashion is likely to continue with its exponential growth in the upcoming years. The Second-Hand luxury trend is being accepted into almost every region such as the United States, Asia Pacific, Middle East, and other regions. Further, there is a rise in sales of luxury clothing & footwear segment which is providing immense growth opportunity for the pre-owned luxury goods market over the forecasted period. Apart from this, the adoption of pre-owned luxury goods is favoring the consumers to make an effort to save money instead of spending tons of money on luxury stuff.
The penetration of smartphones has led to an increase in the usage of online sales all over the world. The millennial populations are preferring online sales channel over the offline sales channel which is opening a gateway opportunity for the online sales channel to grow in the near future. In addition to this, advancements in the online marketing and continuously rising use of digital media for product marketing & promotions of the Second-Hand products are the major key factors which are anticipated to drive the growth of the Second-Hand luxury goods market over the forecast period.
In terms of geography, the Second-Hand luxury goods market is segregated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe Second-Hand luxury goods market accounted for a market share of 32.5% in 2018 and is expected to attain a notable market share by the end of 2024.
In terms of value, Europe Second-Hand luxury goods market is expected to reach USD 15,738.6 Million by the end of 2024 from USD 8,886.0 Million in 2018. The market of Europe Second-Hand luxury goods will be receiving an opportunity of USD 6,210.0 Million between 2019 & 2024. In addition to this, Europe pre-owned luxury goods market value is projected to witness a Y-O-Y growth of 13.0% in 2024 as compared to previous years.
The report also covers detailed competitive analysis of major market players of the global Second-Hand luxury goods market, such as The RealReal, Inc., The Luxury Closet, Vestiaire Collective, Fashion Phile, Tradesy, LXRandCo, Style Tribute, Yoogis Closet, REBELLE, Sou Inc. and other major and niche players. The Second-Hand luxury goods market is witnessing a wide range of industry activities such as expansion, acquisition, agreement, and partnership across the globe. For instance, on 31th July 2018, The RealReal Inc. announced the expansion of its new treasure-filled boutique in Los Angeles. This expansion of new store helped the company to expand its product offering range and strengthen its position in the second-hand luxury goods market.
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