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Resale prices of Gucci, Chanel and Louis Vuitton handbags fall amid crisis

Consumers, spooked by accelerating job cuts, fears of an impending recession and continued high prices for goods and services in 2023, are trading down when they’re shopping, and that includes second-hand stores.

Demand for second-hand goods remains high, with the resale market expected to hit $82 billion in sales by 2026, nearly doubling from $43 billion in 2022, according to industry data.

But just as they’re doing with their weekly groceries and purchases of new items like clothes and shoes, consumers are looking for better value in the resale market.

“We started to notice this in late summer, early fall of last year,” said Sasha Skoda, director of merchandising at online luxury retailer The RealReal.

“Demand for luxury brands with higher resale prices has dropped, which is putting downward pressure on brands such as Chanel, Gucci and Louis Vuitton.”

At the same time, she said, demand for lower-priced luxury brands — such as Miu Miu and Bottega Veneta — has increased.

“Consumers are concerned about the economy and are not spending as much. They are no longer willing to pay the same price at resale as they were willing to pay last year for brands such as Hermes, Gucci and Louis Vuitton,” added Skoda.

According to RealReal’s 2023 Luxury Consignment Annual Report, released this Thursday (19), handbag resale prices fell 20% for Louis Vuitton, 17% for Gucci, 10% for Hermès and 9% for Chanel in the last 90 days.

On average, the resale value of these brands’ luxury handbags is starting to stabilize, with prices falling 5% over the past six months, Skoda said.

“A potential recession, the climate crisis and global unrest are reasons why, in 2023, consumers are making purchasing decisions based on value,” said Rati Sahi Levesque, co-CEO and president of The RealReal, in the report.

As they move to lower prices, resale buyers have become less picky about the condition of the items they buy.

Demand nearly doubled for items in “fair condition,” such as those that show signs of heavy wear in frayed corners and significant scratches, the report said. Merchandise in good condition sold by RealReal is on average 33% cheaper than merchandise resold in good or excellent condition.

Skoda noted that Millennials and Gen Z shoppers, who are the main buyers of second-hand goods, are gravitating towards more affordable contemporary brands such as Miu Miu, Bottega Veneta and Telfar, rather than high-end pieces. investment from top-tier luxury brands.

Pearls, brooches, Y2K fashion – must-haves in 2023

But what’s antique – or perhaps more properly “vintage” – continues to attract the attention of younger buyers, Skoda said.

Survey data on the RealReal website shows that pearl jewelry, ultra-feminine dresses, low-heeled mules, tailored suits, loafers and brooches are emerging as the top-earning fashion trends of 2023. Also hot: Y2K fashion.

“Pearls are a piece of value. They are cheaper than diamonds and timeless,” said Skoda. Big clothes, in suits or dresses, are popular because casual comfort remains popular with consumers.

Demand for clothes and anything from the 1990s and early 2000s is strong, largely because fashion aimed at Gen Z shoppers is so commercialized that “they’re like walking advertisements for brands,” Skoda said.

“They see buying vintage clothing at resale as a way to be different, creative and sustainable.”

Source: CNN Brasil

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