The luxury fashion landscape has witnessed a notable shift towards the pre-owned market, driven predominantly by Millennials and Generation Z. These younger consumers are actively reshaping the perception of luxury, refusing to conform to traditional paradigms and heralding a new era of sustainable, digital, and individualistic consumption.
Sustainability is a crucial factor influencing Gen Z and Millennials' fashion choices
These generations are acutely aware of the environmental impact of their consumer behaviors and are motivated to reduce their carbon footprint. A report from Kering highlights that young consumers appreciate the value of pre-owned luxury items because they come with a history and a reduced environmental footprint. Furthermore, according to The RealReal's annual report, 32% of its consumers shop pre-owned primarily for sustainability.
Rarity is more important than the price tag
For younger consumers, luxury is no longer just about the latest seasonal trend or a high price tag. There is a burgeoning interest in items that offer uniqueness and a story. According to a Boston Consulting Group (BCG) and Vestiaire Collective study, over 50% of secondhand buyers are motivated by the desire for originality and variety. Vestiaire Collective reported a 144% increase in orders placed by Gen Z between 2019 and 2020, which shows the potential of digital platforms to reach these consumers. Pre-owned luxury markets provide access to discontinued, rare, or vintage pieces, fulfilling this desire for individuality and distinctiveness.
Pre-owned introduces customers to brand purchases
A report from Bain & Company indicates that 62% of secondhand luxury buyers later purchase new items from the same brand. Thus, engaging in the resale market elevates brand awareness and opens a new revenue stream without cannibalizing primary sales. Moreover, Millennials and Gen Z are astute in their approach to spending. This shows a clear trend of aligning with brands that share their values, prompting luxury brands to engage with the secondhand market.
Conclusion
The shift towards pre-owned luxury items among younger consumers is not just a fleeting trend; it reflects a broader transformation in consumer values and behavior. Millennials and Gen Z are pioneering a move towards sustainable, unique, and value-driven luxury purchases facilitated by digital platforms and motivated by psychological empowerment and community.
