Resale platforms have redefined the life cycle of luxury goods, transforming “luxury” from being solely about “newness.” Analysis shows that brands like Rolex and Patek Philippe—with their low circulation and high value—demonstrate strong retention, with pre-owned watches selling at premiums of 20% and 39%, respectively, reinforcing their brand equity. Meanwhile, highly sought-after labels like Louis Vuitton, Chanel, and Hermès also thrive in the secondary market, where some iconic handbags resell for 87%-90% of their original price.
However, not all brands fare equally well. Reports from Rebag’s Clair Report and The RealReal’s Resale Report reveal that certain Bottega Veneta bags retain only about 43.8% of their value, while Burberry’s ready-to-wear collections often resell at just 40%-60% of their original price. This depreciation in the secondary market erodes perceived exclusivity and prestige, posing a critical challenge for these brands.
To mitigate the impact on their brand image, some may resort to inventory buybacks—yet this approach raises operational costs and squeezes margins. Thus, the question of how to engage with the resale market—balancing accessibility against scarcity—has become unavoidable. Currently, brands typically adopt one of three strategies: operating their own resale platforms, partnering with third-party marketplaces, or pursuing a hybrid approach—each with distinct trade-offs.
1. The Direct-to-Consumer (DTC) Model
Some brands take matters into their own hands. Richemont acquired UK-based pre-owned watch platform Watchfinder in 2018, enforcing rigorous authentication and servicing to ensure quality. Beyond collaborating with The RealReal, Gucci launched Gucci Vault, curating vintage pieces with fresh storytelling to reinterpret heritage while delivering a cohesive brand experience. Chanel, too, is exploring similar strategies to maintain control over exclusivity.
Yet the DTC model demands significant resources—global logistics, inventory management, and certification processes inflate operational costs.
2. Third-Party Collaborations
Partnering with resale platforms lowers barriers to entry. Burberry’s tie-up with Vestiaire Collective, for instance, incentivizes sellers with brand gift cards while enforcing strict authentication. While this grants brands quick access to secondary markets, they relinquish control over pricing and distribution.
3. Hybrid Strategies
A blended approach offers flexibility. Rolex’s Certified Pre-Owned program enables authorized dealers to sell authenticated used watches, while also leveraging third-party platforms like Watchfinder to expand global reach.
The Bigger Picture
Economic shifts, consumer pragmatism, and sustainability trends have propelled resale platforms from niche to mainstream. At first glance, luxury brands appear to cede authority in this arena, grappling with repricing and discounting pressures.
But in reality, resale platforms’ success remains tethered to the allure painstakingly cultivated by brands over decades.
Today’s disparities in the secondary market stem from past brand-building choices. Only those committed to long-term value—prioritizing timeless appeal over fleeting trends—will endure as consumer preferences evolve, reaping dual rewards: sustained desirability and resale market resilience.
