From the
beginning of the pandemic, the luxury industry has been highly attuned to the
spread of the coronavirus and its massive implications for the sector.

The luxury
brands felt the first rumblings to storm when COVID-19 spread through China,
the country whose citizens accounted for almost 90% of the global luxury market
growth in 2019. Things went down south when the virus reached Italy – a place
where many brands are headquartered and have key suppliers.

Ever
wondered what the world’s biggest brands are doing at a time when the world is
under lockdown and nobody’s out buying their luxury products?

Despite the
pandemic, the situation may benefit the second-hand luxury market. According to
a report by Boston Consulting Group (BCG) in 2019, the second-hand luxury
market was already growing faster than the wider luxury market before the
economic turbulence caused by the present pandemic – and the fact second-hand
goods are increasingly regarded as being of a similar quality to first-hand
goods, while ultimately being cheaper, it will likely pull further away from
the wider personal luxury market in the following year.

BCG found
that in 2018, the personal luxury market was worth an estimated €330 billion,
and was growing at a rate of 3%. Meanwhile, the second-hand luxury market
accounted for 7% of that at €22 billion, but that is expected to grow to 9% by
2021 when it will be worth an estimated €31 billion.

To
understand it better, Opoyi spoke to Namisha Gupta, CEO, and founder at ReTag.
She tells us about how the second-hand luxury market is flourishing during the
pandemic. “The reality is, people are buying and selling more during this
pandemic. COVID-19 has allowed all of us to get into the deeper corners of our
homes and that has made a lot of us realise that there are so many things that
are just lying in the wardrobes for years and haven’t been used. One can resell
the products and get some return on their highly invested products from brands
like Hermes, Louis Vuitton, Goyard, etc. For the people buying preloved luxury,
it’s easier, affordable, and authentic. We make sure to get the products bio
cleaned and the leather rejuvenated and refurbished before reselling it, so
when someone buys, it’s in great condition.”

Talking
about the same, Ms. Anvita Mehra, founder of Confidential Couture says, “From a
sales point of view, customers are still placing their orders with the
second-hand platforms because the luxe items are exceptional, and they want to
buy pre-owned products rather than new ones for cost saving in the current
scenario. Customers are wanting to declutter their wardrobes because they have
more time to invest in it which in return is bringing the need for them to get
rid of the items that they do not want to use anymore and contact us for an
exchange of a valuable amount.”

She further
tells us about how these platforms are following the guidelines suggested by
the government. Mehra says, “These platforms are taking extra precaution,
sanitation more than ever.”

Namisha
Gupta highlights the fact that purchasing second-hand luxury products is
helping in reducing carbon footprints. “People are becoming more accepting of
the concept of pre-loved luxury as against the common dilemma of not using
second-hand products. They are becoming more sensitive towards their purchasing
habits and are becoming aware of the effect on the environment. Therefore by
buying these products, they are not only reducing their carbon footprints but
also promoting sustainability which is the need of the hour.”

“It is
helping the economy as it contributes to the idea of sustainability. It is now
when we’ve realized the importance of cost-saving and implementing that factor
into our lives,” adds Mehra.

Namisha also
gives us an insight into how they source these second-hand products. She tells
us that theirs is a process of doing that. “We source it through the help of
our easy Reselling policy. We pay all our sellers within 48 hours of the sale.
All you have to do is go on our website & fill in the “Sell with Us” form
and attach a picture of your product or our Consignment Team can directly be
reached over WhatsApp. Our client base has mainly been through client
references or buyers who have become sellers too. Word of mouth makes a
difference and it is easier to climb onto the ladder if one has people’s trust
with them. We make sure our process is highly transparent and that our service
time caters to them whenever they require.”

Mehra
further tells us that they follow an authentication process to ensure that the
product is original. “At first, when a customer comes to sell their item, we
check the piece for its authenticity and condition. After it has cleared the
authentication stage, we then move forward with the laundering and repairing
process. Once we’re sure of the product, we get the photography done and it is
set to be re-sold. A customer inquires about the product and supporting images
are sent to them personally. After they approve to buy it, we sanitize the
product and deliver it to the customer in premium packaging along with the
authentication certificate and receipt.”