The Rise of the Luxury Resale Market and What Fashion Labels Can Do To Thrive
Historically, the luxury fashion market thrived on exclusivity. Today, however, with the rise of the global luxury resale market, high fashion brands are accessible to more than just the upper class. In fact, the resale market is not just growing; it's exploding, commanding an impressive $40 billion with a robust 10% Compound Annual Growth Rate (CAGR) and expected to expand at three times the pace of the firsthand market through 2027.
This shift toward resale is not a fleeting trend but rather a fundamental change driven by a new breed of shopper.
The Aspirational Shopper: Value and Vibe Conscious
At the heart of this boom are aspirational shoppers. These are individuals who crave the 'wealth signal' that luxury labels provide, but are increasingly savvy about how they acquire them. With luxury houses like Chanel continually hiking prices – we saw yet another example in August 2025 when the classic medium flap bag jumped by 5% to $11,300 – secondhand shopping has transcended its niche status. It is now the gateway for many to access the brands they desire.
But it is not just about countering costs; it is also about distinction.
In a world saturated with social media trends and the relentless churn of fast fashion, these shoppers are allergic to blending in. The resale market offers a powerful antidote: the chance to find something unique. Pieces with slight wear or vintage charm create a talking point or story - one that offers a compelling juxtaposition to the sterile perfection of an item bought right off the shelf. It is the difference between Jane Birkin using her Birkin bag to carry everyday essentials and books—letting it live a full life—versus a socialite treating hers as a prized jewel and never letting it touch the ground.
The Art of Effortless Affluence
Aside from what can be outwardly communicated about a second hand item, there is something more powerful and unspoken that is shared - making luxury feel normal by taking it off of its pedestal.
Take influencer Olivia Joan, for example, who from time to time shows stunning pieces inherited from her grandmother's closet on her TikTok account. These are items that hold sentimental stories of her grandmother that Olivia seamlessly integrates into her own wardrobe - giving them a new life. This act subtly communicates an indifference to the label implying that she does not feel the need to worship it for name sake. This casual approach to luxury can indirectly signal a deeper, more established affluence – a comfortable familiarity rather than something that is out of reach.
What Brands Can Do: Use the Resale Revolution to your Advantage
At first glance, it seems that the luxury resale market threatens firsthand market sales. However, recent data from McKinsey reveals that consumers in the UK, US and China often use the resale market to explore aspirational brands for future firsthand purchases. What this means is that luxury resale should be seen as a strategic opportunity versus an enemy for primary market labels. By treating it as a strategic opportunity, primary market brands can nurture brand loyalty and introduce new customers. Here are some thought starters of how firsthand market brands can accomplish this:
Smart Retargeting: Use resale websites such as the RealReal as a jumping off point for advertising re-targeting efforts. Target customers who have either looked at items from your brand on these sites and/or made purchases. This will not only remind them of your brand but also serves as a way to introduce them to newer lines, inviting them into the firsthand experience once they've had a taste of the brand's allure through resale.
2. Strategic Integration: High-street brands like Ba&sh have successfully integrated resale directly into their sites. This provides a convenient option for value-conscious or sustainability-driven customers to purchase products from brands they love and know they are getting the real thing. While a "secondhand" section on a luxury brand's website might cheapen its image, it is worth considering highly curated, branded resale experiences, like pop-ups or limited-edition collaborations that maintain the air of exclusivity that the industry demands.
These exclusive experiences also offer luxury brands a way to tackle the ethical dilemma of burning unsold stock. By reselling in a controlled, branded environment, brands can showcase a dedication to healthy sustainability efforts and reinforce the product's longevity.
The luxury landscape is evolving, and the resale market is no longer a peripheral player but a central force. Brands that acknowledge its power and strategically integrate it into their ecosystem will not only safeguard their future but also unlock new avenues for growth, relevance, and connection with a discerning, aspirational consumer base.