As the luxury consignment and resale market experiences unprecedented growth—projected to spike to USD 77 billion by 2030—more fashion enthusiasts are turning their gaze toward second-hand shopping. Leading the charge are Millennials (ages 25-34), who, driven by affordability, sustainability, and a penchant for unique finds, constitute the largest demographic of luxury buyers at 27%, followed closely by those aged 35-44 at 24%.
Popular luxury brands like Hermès, Chanel, and Louis Vuitton dominate the resale market, retaining high average resale values. Hermès bags, particularly the Birkin 25 cm, are highly sought after, with values appreciating by 127% to 138%. The global second-hand luxury market is estimated to surge from USD 34.2 billion in 2023 to USD 72.3 billion by 2032, exhibiting a CAGR of 8.9%. Overall, the luxury market's revenue is expected to reach USD 58.39 billion in 2024, with an annual growth rate of 9.75%, culminating in a projected market volume of USD 92.98 billion by 2029.
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In an exclusive interview with Erica Williams (@ericasgirlyworld), a fashion influencer and luxury expert, we explore the nuances of Hermès retail versus resale. Erica shares her insights shedding light on why savvy shoppers might find the resale route increasingly appealing in today's hunt for the most coveted luxury handbags on the market.
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As a luxury expert, our readers would love your insider tips on scoring deals on items like the highly coveted Hermès Birkin bag. Can you share any secrets to increase your chances of getting offered one of these exclusive bags?
When it comes to scoring Hermes quota bags, there are two components: Your relationship with the Sales Associate and your spending history. The most important tips based on my experience are: be kind and genuine to your Hermes sales associate and spend on the categories that help you the most: homeware, jewelry and ready-to-wear. Buying items such as non-quota bags, shoes and fashion jewelry don't help all that much.
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Readers often wonder which countries offer the best prices globally on luxury bags. In your experience, where have you found the best deals on brands like Chanel, Dior, Louis Vuitton, and others?
In general, the European Union (France, Italy, etc) offers the best prices but not all brands are created equal. I have actually created an excel spreadsheet calculating price differences per country and Hermes and Louis Vuitton have the largest difference in price. If you are travelling to Europe, prioritize Hermes and Louis Vuitton. The prices are 10-30% lower than the US. The higher the price tag, the bigger the savings. Brands such as Chanel, Gucci and Fendi are only about 10% cheaper in Europe when compared to the US. My favorite country to shop is France because it has better inventory across all brands since we have so many options of places to shop.
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Which designer bag brands do you see as hot right now versus losing popularity?
Bottega and Loewe continue to explode in popularity. Bottega's quality is top notch and Loewe offers great value without sacrificing quality when compared to other brands. I also believe Goyard bags are growing exponentially in popularity.
In terms of losing popularity, I believe Balenciaga continues to lose ground and Chanel bags are not selling as they used to due to their quality issues and unjustified price increases. Chanel is reporting tremendous revenue growth for 2023 but if you look at the Americas, specifically, they only grew 2.6% versus 17% growth for Hermes, according to Forbes. This is a real indication that buyers are switching from Chanel to other brands.
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Are you a fan of buying resale luxury bags or purchasing directly from the brand? why or why not?
I do both but I believe resale is becoming more attractive. The insane price increases across the luxury category have made the value proposition not worthwhile in many cases. Basic bags or even monogram canvas bags, which are not leather by the way, are sometimes in the $3,000s at the boutique. We are essentially paying $3,000 for plastic coated fabric. In the case of Hermes, the pre-spend has become so high in many locations that you will be saving money even paying a slight premium at a resale website.
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Lastly, do you think coveted bags like Hermes are a good investment for shoppers? Does the future value of a bag factor into whether you’ll invest in it or not?
I absolutely believe Hermes bags are a good investment when compared to other brands. I don't think they actually sell for double or triple the price as many believe (unless they are store fresh with stickers on) but they do hold their value very well. In most cases you will recover what you invested even if you sell the bag used. They are also a good investment because they are lifetime bags. They will never go out of style and you can send them to Hermes to be spa'd and they will come back looking new. If you calculate cost per wear, it is actually a great deal since you can pass it on to your children!
