Luxury brands and the resale market - to buy new or pre-loved?
As more and more consumers turn to the resale market for luxury goods, brands are starting to take notice. In the past, luxury brands have been wary of pre-owned versions of their products, as they can detract from purchasing from the fashion house and increase the circulation of counterfeits. However, some luxury houses have started to invest in the resale market, with companies like Kering, Mulberry, and Alexander McQueen partnering with resale platforms like Vestiaire Collective and The RealReal. Others, like Chanel, have implemented buy-back programs that allow customers to receive store credit for their pre-owned items.
While these moves can help to increase brand equity, they also require a certain amount of control. Brands must decide whether to enter the resale market and exercise control over their products, or to make their current offerings more exclusive and entice pre-loved buyers to purchase new items. Additionally, brands must consider ethical and environmental factors when entering the resale market.
One way that luxury brands can benefit from the resale market is by offering services that cater to their customers' needs. For example, Chanel's buy-back program not only allows customers to receive store credit, but also offers authentication services to ensure the authenticity of the pre-owned items. This not only benefits the customer, but also helps to protect the brand's reputation.
Additionally, luxury brands can use the resale market to showcase their craftsmanship and longevity. When a luxury item retains its value and can be resold at a high price, it demonstrates the quality and durability of the product. This can help to increase brand equity and differentiate the brand from its competitors.
Overall, the luxury resale market presents both challenges and opportunities for luxury brands. By entering the market and offering services that cater to customers' needs, luxury brands can increase their brand equity and differentiate themselves from their competitors. However, they must also consider the potential risks and make sure to maintain control over their products and reputation.