“The Covid-19 pandemic has brought an irreversible boost in online shopping and a shift in overall luxury consumer habits – mostly driven by younger generations, consumers are embracing digital and environment-conscious ways of shopping,” says Lucia Casagranda, a consultant at Boston Consulting Group (BCG). “Resale is an effective response to this undeniable shift.”

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McKinsey & Company estimates the resale sector will see 10 to 15 per cent annual growth in the next decade. While bricks-and-mortar resale stores still make up the bulk of second-hand sales, digital channels now hold almost 30 per cent of the market share – and the brands want in, quick.

Labels are learning they have an advantage over multi-brand platforms because they hold the documents that allow them to easily authenticate vintage pieces. Another key factor is the advancement of technologies such as blockchain. These, explains Berg, can help “certify the origin and authenticity of products and fight counterfeiting, which is one of the main risks associated with this business model”.

As part of its SS23 campaign, Chloé has recently announced the launch of Chloé Vertical – a digital technology that includes allowing users to scan a bar code in order to be able to trace the supply chain from start to finish. Chloé Vertical also equips individuals with an “ownership certificate”, which allows them to engage in direct resale through the secondary platform Vestiaire Collective.

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The Luxury Closet, a leading luxury resale platform with curated coveted luxury brands, has the capability of authenticating products sold through its website. The top 10 international luxury brands account for nearly 70 per cent of sales on the platform, which welcomes digital footprint from buyers across 80 countries and sellers from nearly 50 countries. The demand and the willingness to sell has always existed, says CEO Kunal Kapoor, but there was previously no safe, effective way to trade internationally. “Companies such as ours aim to make it far easier for consumers to adopt resale luxury. We are focused on resolving key pain points for buyers and sellers,” adds Kapoor.

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“Nearly 70 per cent of the pollution in the apparel industry occurs during production, and by buying used items, you are reducing the impact, while limiting the carbon footprint to peripheral areas such as shipping and selling,” says Kapoor.

This, more than anything, is fuelling the second-hand revolution.

“[An emphasis on] sustainability has transformed the perception of second-hand from something that was often considered as questionable in quality to a widespread purchasing pattern that is very positively perceived and an accepted means of ownership,” adds Berg.

“Gen Z are particularly conscious about sustainability and how resale can potentially reduce first-hand consumption,” adds BoF’s Lee.

“Joining the second-hand market directly undoubtedly fosters a positive impact on a brand’s image. The most straightforward effect is that a brand directly involved in resale programmes is seen by the customer as a more sustainable, responsible player, contributing and committing to the circular economy and trying to reduce waste. More indirectly, brands start to be more visible and can connect with their customers in an innovative way,” says BCG’s Casagranda.

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Developing an internal resale platform has several advantages for brands. “They can retain control of their brand and pricing structure, and they can use the additional insights gained online to stay ahead of a fast-changing game,” says BCG managing director Guia Ricci.

But there are challenges to getting it right. “Looking forward, brands need to figure out reverse logistics, train staff to authenticate, and figure out how to scale their resale model sustainably,” says Berg. “Cannibalisation and brand dilution are still valid concerns, which brands should address by defining the optimal resale strategy that will allow them to capture new customers and increase spend from existing ones instead of losing value from full price sales.

“Many companies believe the future retail model, especially for large corporations, is looking like a combination of mainline, outlet and resale – given fashion production’s waste generation and water usage, resale is a much greener alternative.”