As consumers become more cost and environmentally conscious, it's no surprise that the luxury resale market is booming! Further, with research suggesting that the luxury resale market can in fact result in advantages for the primary luxury market (including, customers being more likely to make a pricey purchase and spending more on luxury items, knowing they have a resale market) it seems a key opportunity area for luxury brands and resale companies alike.
However, where a non-brand owner is reselling goods, there are increased risks including in relation to the exhaustion of trade mark rights (i.e. has the brand owner put those goods on the market in the territory in which your selling or could this be a parallel import) and how you will verify the authenticity of the goods being sold (in order to avoid counterfeiting claims). Although, as is often the case, it usually comes down to due diligence and your appetite for risk. Please get in touch if you’d like to discuss further.
“The secondary market for luxury goods has always existed in the shadow of the primary market,” according to a report from the Boston Consulting Group, but that is beginning to change as demand for discounted pre-owned goods is giving rise to “one of the fastest-growing areas of luxury.” The management consulting firm estimates that luxury resale will grow at an average rate of 12 percent per year through 2021 to a whopping $36 billion market with a 9 percent share of the personal luxury goods segment.