By BOF INSIGHTS
16 November 2022
- Half of surveyed luxury shoppers in the US are monitoring the market value of their luxury accessories — and more than half believe this value could appreciate.
- Furthermore, 62 percent of surveyed luxury shoppers actively selling on resale sites have resold a luxury accessory for a profit.
- The authenticity of these items are increasingly critical for the growth of luxury resale; physical authentication is now the most important feature to motivate surveyed shoppers to buy secondhand luxury fashion.
BoF Insights | The Rise of Resale: Luxury as Currency
This report was developed in partnership with eBay.
As more and more consumers turn to the resale market to buy and sell their luxury handbags, watches and jewelry, the online luxury resale market is entering a new growth phase, building on the work that pioneers like eBay have been undertaking as e-commerce began taking hold. But what is behind the latest phase of growth?
“The Rise of Resale: Luxury as Currency” is a new report from BoF Insights, developed in partnership with eBay, that investigates the behaviors of luxury shoppers, analyzing what they believe about how the value of their luxury purchases will evolve, and the implications of these beliefs on the luxury resale market.
One emerging driver is the perception of luxury accessories, particularly high-end handbags, watches and jewelry, as an asset that can appreciate or at least be safe stores of value. This perception could very well explain some of the recent rise in resale activity as shoppers look to make a return on their purchases.
The analysis is based on a proprietary, nationally representative survey of 1,000 consumers in the US and defines “luxury accessories” as designer handbags, fine watches with a retail value of at least $2,000 and jewellery with a retail value of at least $500.
The research reveals that more than half of surveyed luxury shoppers believe the value of their luxury accessories could appreciate over time if they care for the condition of those items. Furthermore, half of surveyed US luxury shoppers check the current value of their luxury accessories — and as many as one-third do so at least once a year.
Could investments in luxury accessories prove to be lucrative? For some shoppers, yes. 62 percent of the surveyed luxury shoppers who are active sellers on online resale platforms have sold a luxury accessory for more money than they originally bought it for.
As luxury becomes an asset class, authentication naturally becomes more important. In fact, this research identifies physical authentication as the most important feature to motivate luxury shoppers to buy secondhand luxury accessories, especially as 25 percent of surveyed luxury shoppers believe they have or are uncertain if they have previously purchased a fake luxury accessory.
For more insights like these, download the complete report by BoF Insights, produced in partnership with eBay, here: