Second-hand Luxury goods market in Paris, France

The second-hand Luxury goods market continues to flourish in Paris, a new economic model that is not easily detected. Not just a way to buy luxury goods at huge discounts cheaper, it’s a circular economy model that is environmentally friendly. What is even more unexpected is that some second-hand luxury goods of certain styles are even a means of investment, as long as you understand which old style has always been in strong demand in the market.

Second -hand fashion has never been so popular. Its advantages: being more economical and ecological than the production and purchase of new clothes. Whether they are collectors, speculators or simple luxury consumers, all show an exponential attraction for the second hand. In recent years, the second hand has been on the rise, whether to invest, to have fun or to collect.

This market trend has spawned a new market role, the second-hand luxury goods trading platform. In Paris, second-hand luxury trading platforms are usually online and offline e-commerce complexes, they have physical stores and showrooms, and use online platforms to help display goods and promote sales. The trading platform is not only for sales, but also welcomes users to consign their luxury goods.

The luxury second-hand business is exploding. The market for second-hand bags, watches and jewelery reached 16 billion euros in 2014. The luxury segment, has experienced exponential growth in recent years, and in particular since the Covid crisis. As a result, the major auction houses are organizing more and more often days specially dedicated to luxury.

Vuitton, Hermès, Chanel, Gucci… A pretty designer dress or a designer bag wrapped in tissue paper. It looks like new but it is used items offered by a website. For fashion freaks, it offers a cheaper way to access luxury brands and change them very often. Because all these clothes already worn come straight from the closets of other fashionistas.

Luxury bags are among the most sought-after fashion items. A stylish bag from top brands is the highlight of a woman’s outfit. Whether it’s the it bags or the timeless classic bags, all the big fashion houses have their own icon: The second-hand Chanel bag has the scoop on other brands with the Kelly Hermes bags and the Hermes birkin.

Second-hand luxury market with a logic that works perfectly with luxury pieces, since unlike fast fashion, they are designed to last and stand the test of time. Up to 50% cheaper than new, second-hand luxury seduces, buying or selling second-hand luxury items is becoming more and more trendy. This market is attracting new players. Beyond the aesthetic aspect of a luxury handbag, the investment aspect is significant, the most influential luxury brands increase their selling prices by an average of 3% each year.

There are some luxury models that tend to be more attractive in the thrift market, such as classic models that manufacturers have announced no longer in production, or early core models that are deeply rooted in the brand, or even some limited edition models with special commemorative meanings. Pieces whose value is guaranteed to grow rapidly on condition that they are perfectly identified.

The second-hand market is also very connected to luxury news and trends, almost instantaneously. Peaks in sales and traffic are observed during the launch of reissues, also during Fashion Week shows. Collection anniversary dates, the announcements of production stoppages are also the causes of sudden increases in value.

The luxury second-hand trading platform must ensure the quality of the goods, and the source of goods obtained must be authenticated by authoritative testing. In addition, the maintenance of second-hand luxury goods also needs to be tested and rated. Only those second-hand luxury goods that are almost brand new can be sold at the best price. If there is a slight flaw, and it is difficult to repair, the valuation of the item will also drop significantly.

Also, in an environment with many competitors, luxury second-hand marketplaces were in a quandary, with consignment owners wanting the highest possible prices and buyers wanting bigger discounts. If the second-hand luxury goods platform always underestimates the source of goods, the owner of the goods may be more inclined to cooperate with other platforms. However, if the platform always gives an excessively high valuation to the source of goods, it is easy to be disadvantaged in the sales process. Second-hand luxury goods trading platforms need to choose their price strategy carefully, and maintain a delicate balance between supply and sales, cost and profit.

The second-hand luxury market is also very attractive to tourists, especially those from emerging markets. Some older styles may never have been released in the region, or may only have very little stock. Although Paris’ second-hand luxury goods trading platform basically has physical stores, away from the famous flea markets in Paris, most of the stores are located in more upscale locations, some addresses are still difficult to find for tourists. In response to this situation, special shopping guides have appeared in Paris.

Although second-hand luxury goods are often sold at very deep discounts, customers should be aware of other taxes and fees in addition to the quality of the item. For example, luxury tax and sales tax, whether there are tax rebates, etc., the policies of each sales platform are different, and you should understand the details before making a transaction.

The second-hand clothes market offer an eco-friendly alternative. Fast fashion is playing a seminal role in destroying our planet, polluting our oceans and generating a staggering 1.2 billion tonnes of greenhouse gases a year (more than all international flights). While reconciling luxury fashion with sustainability is a tough gig in itself, the rise of rental and resale sites, paired with a fine vintage renaissance is certainly a step in the right direction.