Why wearing a second-hand Gucci is no longer frowned upon

Buying a

Gucci is no longer just a collector's hobby.

Similarly, the used watch business is not a leap in the dark, but rather a promising investment.

The second-hand luxury market has exploded in 2021 to reach 33,000 million euros, after an increase of 65% since 2017, according to a study by the Bain & Company consultancy.

In contrast, the first-hand market has only grown by 12% in the same period.

Increased sales on digital platforms and a growing concern for sustainability by both younger consumers and brands are among the reasons for the flourishing of this sector.

A trend that large luxury companies cannot turn their backs on when drawing up their growth strategy.

According to recent research by the Boston Consulting Group (BCG), consumers of second-hand luxury goods are slightly male-biased (55%) and tend to be younger (mostly

or mid-teens).

Generation Z).

The professor at the ESIC business school, Gabriela Salinas, believes that the new generations have a growing awareness of sustainability and the need to consume intelligently.

“We're in the era of

, where the idea that spending money frivolously makes you look less cool is starting to creep in,” she says.

Another fundamental factor in the growth of the sector responds to the disappearance of the stigma of the second hand.

This change in mentality has consolidated the reputation of resale, which has become a positively valued purchase option.

“Before, buying second-hand seemed like a business of cheap things, dedicated to people who had few resources.

Now this prejudice is weakening, also thanks to the fact that digital platforms are authenticating the products to verify that they are genuine”, adds Salinas.

The proliferation of digital applications for buying and selling luxury goods gives consumers more direct access to this market.

Vestaire Collective is one of the leading players in this e-commerce.

Founded in Paris in 2009, the platform operates in 80 countries and has an inventory of more than 3 million items from 10,000 different brands.

In 2021, it has seen strong growth, with a 90% increase in orders globally.

At the moment, the United States is its largest market, although East Asia, Southeast Asia and Oceania have seen considerable growth in the last year.

“Traditional distributors have to adapt to an increasingly digital landscape, where brands, also through applications,

they will integrate increasingly sustainable options so that customers can sell their old pieces and buy new ones”, says Sophie Hersan, co-founder of Vestiaire Collective.

The company has not communicated its turnover to EL PAÍS, but in March of last year it reached the status of

so its valuation exceeds 1,000 million dollars.

Watches and jewelry, the most popular items

In terms of product categories, the analysts consulted by this newspaper agree that watches and jewelery represent more than 75% of the market.

Pawn Shop has been one of the leading companies in Spain in the sale of second-hand luxury watches for eight years.

Álvaro Martín, one of its owners, explains that these accessories are a refuge value for investors, because they know for sure that in the coming years they will increase their market value.

According to this businessman, the Rolex, Patek Philippe and Audemars Piguet brands have created a real bubble in the second-hand market.

“In their stores they don't give the most demanded models to anyone except the most cutting-edge customers or whoever is on the waiting list, which is for a minimum of four years.

Thus, there is a lot of demand, but very little supply, which is why used watches are worth double or triple that of new ones, ”he comments.

Martín celebrates that the coronavirus crisis has not affected his business, since in 2021 he invoiced between 3 and 4 million euros, around 40% more than two years ago.

Beyond watches and jewelry, some key apparel categories, such as bags and shoes, are gaining market share.

The Vintalogy brand, specializing in

clothing , has four stores in Madrid and three of them are mainly dedicated to the sale of

.

“During the pandemic we realized that it was the only thing our customers kept buying.

They have an unbeatable

, even more so since when the great icons of music and entertainment are associated with brands to make all kinds of versions”, says Juan Fraile, one of the two founding partners.

The fourth Vintalogy store, located in the Rastro area, mixes ordinary garments with luxury items.

Fraile indicates that the consumer is increasingly cosmopolitan and heterodox.

Especially the youngest, who approach the second-hand luxury market in a more eclectic way, combining pieces from different brands to find their personal style.

Although sales of high-end clothing are recovering, the pre-crisis level has not yet been reached.

"We closed 2021 with a turnover of close to half a million, half that of 2019. Events have not yet been resumed and many employees continue to telework," he ditches.

Brands cooperate with digital trading platforms

One of the hot topics of the second-hand business is the participation of brands in the sale of their garments.

If until a few years ago luxury firms were suspicious of this market for fear that it would harm their image of excellence, now many of them invest in used clothing sales platforms.

5% of Vestiaire Collective's shareholding belongs to Kering.

Two years ago Gucci sealed a collaboration agreement with TheRealReal, the leading platform in the United States for buying and selling items.

“Second-hand is a trend that is here to stay and most luxury brands, despite an initial period of perplexity, are trying to integrate it into their global strategy,” says Filippo Bianchi, an analyst at BCG.

Collaborating with platforms allows brands to grow in a controlled manner and win their battle against counterfeiting.

“By signing agreements with

resale companies , they can intervene in the selection and curation process of the garments for sale and, if they are not up to par or if they are not original, they can decide not to offer them through these channels” Salinas adds.

Many brands have realized that it is necessary to favor their accessibility to more and more users to increase their presence in the market.

The second-hand sector is a way to meet this objective.

According to the latest BCG research on this business, 62% of consumers would buy more fashion brands that are associated with buying and selling platforms.

At the same time, luxury companies should not jump off the exclusivity bandwagon, as most consumers buy high-end products because they want to look different from others.

For those brands that achieve this balance, the rewards will be many.