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    The Global Luxury Goods Market Is Growing Rapidly.

    2019/9/10 9:21:00 4

    Luxury GoodsSecond-Hand Market

    The latest annual report of the Italy Federation of high-end commodity producers pointed out that sales of luxury goods in the world reached 330 billion euros (1 euros or 7.8 yuan), of which 7% of the sales came from the secondary market. This is a big figure, and in the short term, by 2021, the proportion of secondary luxury goods sales in the total will increase to 12%, which is also the reason for the increasing number of luxury electronic business platforms.

    According to the Spanish national newspaper website reported on September 7th, experts believe that second-hand products will be the fastest growing market in the fashion industry in the next 10 years. "We see that resale is changing the buying habits," said Alison Samer, the strategic director of TheRealReal, a second hand luxury e-commerce platform in the US. As customers invest more sensibly and pay more attention to the impact on the environment, resale of luxury goods has become an alternative to the traditional market. In fact, 82% of customers of the e-commerce platform say that caring for the environment is one of the reasons why they choose to buy second-hand luxury goods.

    However, the concept of rational consumption is not only limited to the love of the earth, but also a simple way of life. This trend also extends to the field of luxury. The annual research report of Thred Up, a second-hand electronics business platform in the US, shows that the number of clothes in the consumer's wardrobe is declining rapidly, with an average of 164 clothes per person in 2017 and 136 in 2019. This is a change of mindset, because clothes stored by consumers are often two times as much as they actually use. They try to change this habit.

    However, the report points out that streamlining clothing does not make consumers willing to be mediocre. On the contrary, they pursue innovative street fashion, and it is in the second hand luxury market that they can find unique limited edition clothing.

    In addition, social networking has also had an impact on people's spending habits. Young people on the Instagram have seen that the net is constantly changing their new clothes, and they want to imitate the changes.

    The report pointed out that resale allowed the use of fashion products to expand and the use of life was extended. Suzanne Campusano, a professor at IE School of business in Spain, pointed out that "buying luxury goods is not the only crazy thing that can happen now and then, because now we know that we can resell them." Campusano believes that this change in consumer behavior has promoted the development of luxury goods industry. In fact, there are even some investors who buy collections of clothing, because they know that the value of these clothes will double in the future.

    But not all secondhand luxury goods are like this. The price of most luxury goods will decrease over time, thus opening the door to consumers who have no opportunity or financial resources to buy. Closet Emotions, a Spanish second-hand luxury goods platform, is an example of this. Its main attraction is that consumers can buy products that can't be expected on a flat day. Customers are looking for more reasonable products of high quality. In general, users can buy fashion items equivalent to 80% of the original price.

    It is believed that the luxury goods market has brought luxury brand manufacturers into an unknown market environment. However, luxury brands do not see this phenomenon as harmful, but think they will benefit from it. TheRealReal spokesman Garcia Baddeley pointed out that the sales growth of these companies is because consumers choose durable and well made second-hand luxury goods. This market proves that the quality and durability of luxury goods are real because people are willing to pay a large sum of money for products that have been used by others.

    TheRealReal hired experts to identify second-hand luxury goods in order to dispel customers' concerns about the authenticity of the products.

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