Barbara Ng · Sector Report
Preloved · Luxury Resale
Issue · July 2026

Preloved Luxury

Resale doesn't steal demand. It reveals it.

Soft + Hard Full-price sales Secondhand demand
Position
What Resale
Shows
Why it matters

Secondhand prices show what people still want once the product leaves the boutique. Used goods usually sell for less — that’s normal. The question is whether a brand holds better than peers, and whether that hold is rising or falling as resale grows.

01

The score is relative — not a verdict on retail price

Brands still set the retail price. What people will pay later sits outside brand control. Most used pieces sell below retail. That alone is not a problem. What matters is how a brand holds against peers — and whether that hold is rising or falling.

Luxury brands raise prices. Secondhand shows whether demand still follows.

What still holds value · Rebag Clair 2025
Hermès avg. resale
138%
Above original retail · scarce
Goyard
132%
Also above retail · scarce
The Row
97%
Close to retail · strong
02

Who controls the brand after the sale?

Lawful resale cannot be stopped. The real question is what happens after the product leaves the store: who defines authenticity, who controls presentation, and who introduces the next customers to the brand.

Secondhand
Earn on turnover

The secondhand channel wins when items change hands. Higher retail prices can actually help it.

Retail
Earn on the full-price sale

Brands win through full-price sales, the right clients, service, and aftercare. That’s where value is made — or lost.

Four paths brands take

Brands are responding in different ways. Open each example for what that house actually did.

Litigate
Defend the name — don’t let platforms pretend they speak for the brand’s quality. Chanel · Example ↗
Certify
Own aftercare — authorized pre-owned with service, warranty, and a clear history. Rolex · Example ↗
Invest
Stay close to the market — learn from resale without running the warehouse. Kering · Example ↗
Partner
Bring the client back — trade-in and product passports that return people to the brand. Chloé · Rimowa · Example ↗
03

A bigger secondhand market pulls buyers from the store — and makes the score louder

Growth is not only about visibility. When Gen Z and millennial buyers choose pre-owned over the boutique — especially on bags — some full-price sales are lost. At the same time, more clients can check what a piece still commands, and that feeds back into how a retail price is judged.

Hermès Birkin · 10-year Clair read
Secondhand value
+92%
Since 2015 · Rebag
Hermès retail
+43%
Same period
Pace vs retail
~2× faster
Secondhand gain vs boutique raises
Luxury secondhand · Bain 2025
€50B
A large market on its own — and the one that shows how luxury prices and icons hold up. BCG’s fashion+luxury figure is much larger (~€190–200B now; up to ~€330B by 2030) because it covers all categories and price levels, not luxury alone.

Stress test

Three challenges worth answering

Challenge

Resale takes sales away from the boutique — especially from younger, aspirational buyers.

Answer

Yes — some of it does. Younger buyers often start with secondhand instead of walking into the store. BCG × Vestiaire finds secondhand can be up to ~45% of Gen Z handbags (higher in the US). That is real competition for a first sale. It doesn’t mean resale stops mattering — but treat those lost store sales as part of the cost of a bigger secondhand market, not something to brush aside.

Challenge

Most used goods sell below retail — so why watch resale at all?

Answer

Because what matters is how you compare. Chanel and Louis Vuitton have peaked around 92% and 88% of retail — below full price — and both still sell enormous volumes new. Sitting under retail isn’t the warning. Falling behind peers, or weakening after a price rise, is.

Challenge

Strong resale can also create control problems.

Answer

True. When Rolex watches were selling above retail on the grey market, the brand had to take aftercare back through Certified Pre-Owned. Strong secondhand prices mean people want the product — they don’t mean anyone else gets to speak for the brand.

Analyst POV

For the board: a resale program is optional. Knowing what your pieces command on the secondary market — against peers, especially after a price increase — is not.

The winners won’t run the biggest resale shop. They’ll be the brands people still want to own five to ten years later.

The resale market has already scored your brand.

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