Prestige on a Penny
American shoppers aren’t willing to ditch designer labels. But amid economic concerns and persistently higher inflation they are looking to ditch designer price tags.
Retail market trends point to increasingly changing behavior among luxury buyers who are seeking the best bang for their buck. This means increasing demand for high-end secondhand purchases.
On luxury resale platform The RealReal (REAL), today’s shoppers show a high regard for luxury brand apparel, handbags, and jewelry — regardless of their condition.
According to the company’s annual resale report, demand for products in “fair condition” has increased significantly through the first half of 2023. This was particularly true for bags in fair condition, which rose 130%. Demand in the category rose 265% overall.
But the trend of luxury bargain hunting isn’t limited to a single platform. The market for pre-worn clothes is expected to grow to $70 billion by 2027 from $44 billion in 2023.
Gen Z Goes Vintage Shopping
Changing shopping behavior also has a generational angle. Millennials and Gen Z show a strong preference for affordable and sustainable apparel, including secondhand items. This shift isn’t always an economic necessity; Many consumers embrace secondhand buys as a “badge of honor.”
All this goes to show that the definition of luxury is changing, and increasingly has less to do with the price tag.
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