Luxury Shoppers Are Getting Cost-Conscious

By: James Flippin · August 23, 2023 · Reading Time: 2 minutes

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.

High-End Hand-Me-Downs

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.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender