The global used luxury goods market is witnessing an unprecedented surge, now valued at nearly 300 trillion won (approximately $210 billion).
According to a recent report from Boston Consulting Group (BCG), this market is expanding at an impressive annual rate of 10%. To put this into perspective, this growth rate is three times that of the new luxury good market, underscoring a significant shift in consumer behavior. CNBC reported these findings on the 18th of October, highlighting the rising appeal of second-hand luxury items.
Forecasts suggest that the global used luxury goods market will escalate to $360 billion (or 512 trillion won) by 2030. This projected growth signals a robust demand for pre-owned luxury articles, as consumers increasingly look for value and sustainability in their purchases.
A staggering 78% of 7,800 surveyed consumers indicated that “moderate prices” significantly motivate their purchases of used luxury goods. This price sensitivity reveals a compelling economic driver behind the rise in popularity of second-hand items. Additionally, the availability of discontinued products also enhances the appeal of purchasing pre-owned luxury items, offering shoppers unique finds that are no longer available in retail stores.
This trend comes against the backdrop of luxury brands continuously increasing their prices. For instance, Tiffany & Co., a prestigious jewelry brand under the Louis Vuitton Moet Hennessy Group, plans to raise prices of some jewellery and watches by an average of 5-10% starting next month in Korea. Such price hikes reflect a broader pattern of premium brands seeking to maintain their exclusivity, albeit at a higher cost to consumers.
Other luxury labels are following suit. The Italian brand Bulgari has announced similar price increases for specific items, also ranging from 5-10%. Meanwhile, historical brands like Boucheron have raised their prices twice this year, and Van Cleef & Arpels adopted a similar strategy with price adjustments earlier in the year. These consistent price hikes reinforce the notion that consumers are increasingly turning to the secondary market for more accessible luxury options.