Second hand luxury is no longer favoured only by students and arty types. As the market for vintage pieces is grows rapidly, year on year, Elite’s Marketing Manager Katie delves into the reasons why this could be the case.

In 2013, the second-hand luxury market was estimated to be around $15 billion globally. Fast forward to 2023 and the market has surged to approximately $33 - $40 billion.

Over the past decade, the second-hand luxury market has grown at a super-fast pace of 10-15%. This is significantly higher compared to the overall luxury market (on average 3-5% annually), with many brands including Burberry & Louis Vuitton seeing a real dip in sales in the first half of 2024.

It seems that vintage fashion isn’t just for “kooky” art and design students (I know, I was one back in the late 2000s) and is now much widely sort after in the global marketplace. But why?

Soaring Costs of Luxury

According to a 2023 report from Deloitte, the prices of luxury goods have increased by an average of 5-10% per year over the past few years. Inflation and the price of materials, currency fluctuations and HBO’s Succession “the quiet luxury effect” of positioning brands further into exclusivity, are all to blame for rising prices.

Between 2019 and 2023, Chanel increased the cost of its iconic Classic Flap bag by nearly 60%. In 2022 alone, Louis Vuitton raised their prices twice! With an estimated average increase of 10-15% annually for their iconic monogram bags. The price increases could also be responsible for a slump in sales in 2024 (Burberry declined by 2% and LVMH by 3% in the first half of 2024) and the rise in popularity of vintage designer items.

Consumer Preferences and Sustainability

Millennials and Gen Z are now much more like to purchase second-hand than in previous years with approx. 62% of this demographic saying they are open to purchasing vintage pieces if they haven’t already. (Bain and Company Survey, US, 2024)

Sustainability has become more than just a buzz word today. Over 60% of luxury consumers in recent surveys indicated that they are more likely to purchase second-hand items due to environmental concerns. (see Fashion's Dirty Secrets Blog, April 2024)

Increase in Digital Platforms

Digital resale platforms like The RealReal and Vestiaire Collective have significantly boosted the market by creating easy user experiences to purchase preloved designers’ goods. Gone are the days of anguish waiting for your offer on a Moschino belt to be outbid on eBay. Back in 2013, luxury resale apps were relatively niche, but by 2023, they are dominating the second-hand luxury market. You can purchase or hire luxury goods instantly in app.

British luxury resale company Luxe Collective is making waves on TikTok, their CEO and co-founder Ben Gallagher says that before Luxe Collective joined TikTok, revenues were around £300,000. From 2021-2022, Luxe Collective sales grew 73 per cent, from £2.6 million to £4.5 million. (Vogue 2022)

Depop has also made a household name for items among savvy consumers since its launch in 2011. With satirical accounts like Depop Drama springing up across social media platforms https://www.vogue.co.uk/miss-vogue/article/depop-drama-interview

Celebrity and the Vintage Resurgence

Recently Blake lively resurrected the Versace dress once worn by Britney Spears in 2002. Although the dress was “updated” for Blake’s appearance at the premier of her latest film; “It Ends With Us” in August 2024, many celebrities before Blake have worn original vintage pieces.

At 2023’s met gala event, Kim Kardashian (quite controversially) wore the vintage Bob Mackie dress in which Marilyn Monroe famously serenaded President Kennedy on his birthday in 1962, sadly damaging the historic gown. Her sister, Kendall Jenner brought a vintage dress from a 1999 Givenchy collection by Alexander McQueen to life at 2024’s Met Gala. The piece had never been worn before she wore it at the event.

And who can forget Zendaya shutting down the red carpet in Vintage ‘96 Thierry Mugler for the premier of her second Dune movie? The futuristic look was perfect for the red carpet her sci-fi blockbuster, proving that high fashion is timeless. Many stars and models frequently re-wear classic vintage pieces in public including Cardi B, Bella Hadid, Miley Cyrus and Megan Thee Stallion.