Starting 2016, there was a global shift towards using pre-owned luxury goods. Since then, the upward trend led to the industry accounting for around USD 27,000 million in 2018 alone. Experts believe the industry is going to register an annual growth rate of 12 per cent between 2019and 2024. Let’s look at some of the most notable reasons the market is flourishing and is expected to continue to do so.
Urbanization all over the world and in India has set retailers to go out, re-strategize and re-model their selling techniques and their approach to commerce. An increasing population settled in urban areas leads to springing of commerce centers. It is expected, that by 2025, the urban population alone will pump in USD 20 trillion into the world economy every year. Millennials prefer living in urban centers owing to better employment opportunities and exposure.
Increase in disposable income of a larger number of people
Increased urbanization has led to a rising disposable income across the globe. In order to improve their lifestyles, consumers all over the globe are adopting and bending towards owning and using second-hand luxury items which otherwise come with a hefty price tag. In order to cut their expenses, buying pre-owned luxury goods in good condition are an alternate a large section of the population has opted for in the past few years. Countries with high urban population like Saudi Arabia, United Arab Emirates, United States and India accounted for a high share in the pre-owned luxury market.
Making a fashionable statement
Pre-owned luxury fashion is an ideal choice especially because it helps one enjoy the luxuries of good bags, clothing, footwear and accessories. Everyone wants to look their best while stepping out and repeat to a bare minimum. Uncertainties of everyday life and increasing expenses of day to day living has made consumers smarter and opt for options that help save money.
Growing number of gateways to the market
The number of portals, start-ups and stores engaging in pre-owned luxury goods has been increasing rapidly. It acts as a gateway for people to explore, compare and shop. This has not only led to a growing awareness amongst people but helps them by providing a platform that helps compare prices, estimate savings, and be assured of quality.
Quality checks and genuine products
The best part about visiting a store or website dealing in pre-owned luxury is you can be assured of genuine products and accurate quality checks for the condition of the product which also has an impact on pricing. A big threat to the sale of pre-owned luxury goods remains the availability of counterfeit products that infect the market. A lot of consumers are apprehensive of trusting gateways and stores selling pre-owned goods for this reason. A proper background check of the point of source and reading reviews can help in this matter.