Luxury Brands Confront Rising Threat From Booming Resale Market

Benzinga

Resale luxury is booming as platforms like The RealReal and Fashionphile outpace top brands, with the $56B secondhand market reshaping how Gen Z and millennials shop.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Luxury brands are facing a new challenge as second-hand sellers surge ahead,

00:07according to the Wall Street Journal. The RealReal has grown sales 10% on average over

00:12the past 18 months, while its stock has climbed more than 200% in a year.

00:17Privately-owned Fashionphile has reported similar growth above 10% this year.

00:22In contrast, demand for new luxury goods has stayed flat for six straight quarters

00:26among top European brands. Bain data shows Gen Z spent 7% less on new luxury in 2024,

00:33and millennials' spending slipped 2%. The used luxury market reached $56 billion last year,

00:40nearly triple its size a decade ago and equal to global department store luxury sales in 2024.

00:47Resale platforms are influencing shopping behavior as consumers compare prices before buying new

00:52and often reinvest proceeds into more pre-owned goods.

00:56Companies like Louis Vuitton, Chanel, and Gucci dominate second-hand sales,

01:00while brands are reissuing popular vintage styles to capture resale-driven trends.

01:05For all things money, visit Benzinga.com.

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