As reported on Business of Fashion:
On Monday, Balenciaga announced that it will allow customers to sell their clothes and accessories in exchange for cash or a credit toward future purchases. The programme is being run by Reflaunt, which provides the back-end for many brands that deal in the secondhand market.
Balenciaga is the latest in a growing list of luxury brands attempting to capture a slice of the secondhand luxury market, in a rapid about-face for a sector that just a few years ago viewed resale as a threat to their full-price business, as well as a potential vehicle for counterfeits.
One reason for the shift: consumers are going to shop secondhand whether brands buy into the concept or not. But rather than hurting brands, the labels that do support resale could be poised to benefit from it. Data from BoF Insights’ in-depth report, The Future of Fashion Resale, found that upwards of 70 percent of general consumers in markets such as France, the US, the UK, Germany and China indicate that secondhand luxury has a positive or neutral impact on a luxury brand or retailer’s image and positioning.
Among a panel of “industry insiders” drawn from the BoF community, this figure increases to upwards of 90 percent in the North American, European and APAC markets.
For a brand or retailer, formally participating in the secondhand market could signal that its products are well made, and that the company is looking to minimise its impact on the planet by urging consumers to buy used clothes rather than new ones. It is also a revenue opportunity that’s becoming too big to pass up: BoF Insights forecasts double-digit growth for secondhand luxury globally.
BoF Insights is The Business of Fashion’s data and analysis think tank that arms fashion and luxury executives with the business intelligence they need to make better strategic decisions. Building upon its unparalleled industry access and knowledge, BoF Insights provides companies with in-depth research and analysis, executive briefings and training, and bespoke advisory services designed to support clients in answering their most critical business questions and solve for their most pressing challenges. Interested in working with BoF Insights? Reach out to email@example.com.
Source: Business of Fashion
Author: Diana Lee, Rahul Malik
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