The luxury sector too is moving slowly towards sustainability: business models such as clothing rental, second-hand sales and co-ownership are some of the trends that have characterised the sector over the past year.
New business models
This sector does not escape the transition from a linear to a more circular economy, mds writes. "Consumer’s evolving mentality is stimulating a proliferation of adjacent business models, representing an opportunity that brands should proactively address", the latest Worldwide Luxury Market Monitor 2019 by Bain & Company and Altagamma says.
The second-hand luxury market, for example, accounts for 26 billion dollars (23 billion euros) a year, mainly supported by younger consumers. Fashion articles and accessories are doing very well: they make up 78 % of the second-hand market.
Second-hand luxury clothing and accessories are gaining ground, but in relation to the entire luxury sector, the share remains relatively limited (22 %). Companies such as Vestiaire Collective or The Real Real, specialised in the online resale of luxury fashion, earn 30 % of this turnover. The remaining 70 % is still spent in physical stores.
Europe leads the way in the field of second-hand luxury goods, where 55 % of total turnover is generated. The United States accounts for 27 %, the rest of the world for barely 18 %.