December 14, 2021

Exploring resale opens new income stream for luxurious labels: McKinsey



Exploring the quickly rising resale market not solely opens a brand new income stream for luxurious labels, however might additionally positively influence model loyalty and desirability for consumers, says a McKinsey report. The estimated $25-$30-billion international luxurious resale market is anticipated to see an annual progress price of 10-15 per cent over the subsequent decade, it says.

Some luxurious manufacturers selecting to foray into the market doesn’t come as a shock, the examine says. Gucci, for instance, has partnered with on-line resale platform The RealReal to recycle and upcycle its merchandise, whereas Switzerland’s Richemont has acquired UK-based watch market Watchfinder, and French luxurious large Kering has invested in Vestiaire Collective.

Many manufacturers, although, stay not sure as to how finest to cope with the phenomenon, with worries arising round jealously guarded model identities and the potential influence on margins. McKinsey, nonetheless, says these corporations must be extra involved about letting an thrilling progress alternative slip by way of their fingers.

Exploring the quickly rising resale market not solely opens a brand new income stream for luxurious labels, however might additionally positively influence model loyalty and desirability for consumers, says a McKinsey report. The estimated $25-$30-billion international luxurious resale