Luxury brands flirt with resale

New Ideas in MarketingEssential news for marketers, summarised by YouGov
March 03, 2021, 4:18 PM GMT+0

Gucci, Balenciaga and Alexander McQueen’s parent company – Kering – has invested $216 million in a French second-hand marketplace, Vestiaire Collective.

The resale sector is currently valued at $28 billion and is growing 25 times faster than the overall retail sector. It is expected to hit $64 billion within the next five years. Many luxury brands hoping to capitalise on the second-hand trend, even as some brands remain against catering to the market.  

Chanel has sued resale sites, including TheRealReal, claiming second-hand stores are wining customers on the luxury brand’s reputation. Despite the troubled relationship between luxury brands and resale sites, Kering has announced a $216 million investment into Vestiaire Collection to capture new revenue streams from second-hand products.

Kering’s luxury brand Gucci has previously launched its microsite on TheRealReal with curated second-hand products. Kering’s Grégory Boutté said they want to play an active role in defining their place in the resale market.

Read the original article

[3 minute read]

Explore more data & articles