The current situation of a disruptive supply chain is well-reflected in the resale value of luxury items, wherein top brands like Rolex, Hermes, and Nike have seen the biggest resale value gains. As per reports, from January-November of 2020 and 2021, the top five brands with the highest resale value were Rolex, Nike, Chrome Hearts, Bottega Veneta, and Hermes.
The annual report analyzes the behaviour of 24 million customers who have purchased over 22 million items in 2020 & 2021. The pre-owned luxury market can often feel unruly, but it is where the taste of millions of shoppers is shifting progressively.
Ranking first in the order are the much loved high-value Nike sneakers. Prices for Nike items saw an overall increase of 32 per cent; double the rise of the following brand. The reason for this significant price hike, as stated by Mayank Hajela, Senior Director of men’s goods at The RealReal, is the brand’s ongoing collaborations with Off-White and Sacai, and also the new coveted Dunk styles.
Rolex is next on the list where the watches saw an overall increase of 16 per cent. The most sought-after models are selling for up to 298 per cent of their original prices! The reason for such a bizarre response is the limited availability of Rolex’s most desirable models. An example of one such model is the Rolex Oyster Perpetual Cosmograph Daytona.
Next on the line is Bottega Veneta which has landed on the list with a 15 per cent jump. This is in reference to the astonishing 62 per cent increase in men purchasing the brand’s gender-fluid bags.
In an era where fashion is all about individualism, consumers are flocking to the luxury resale market to pick their pieces. While some have readily adapted to the model for sustainability, others followed due to the steep drop in the primary market supply. Hence, the surge in sales!
Rati Sahi Levesque, President of The RealReal, has stated that ‘Resale has surely gone mainstream. The factor that sets the luxury sector apart is that every demographic actively participates in luxury resale. From Gen Z to the Older (Silent) Generation, every age group has increased its adoption of secondhand luxury in 2021. As a result, almost every brand has spotted a rise in the resale value’.
The year 2021 saw a severe mismatch in supply and demand. As a result, people turned to the resale market to get their hands on luxury items, usually at a higher price. Resale is booming, and the figures attest. Reportedly, the Rolex Oyster Perpetual or HermesBirkin attracts 50 per cent more new shoppers than other standard resale items. So, if you were looking for the right time to let go of your old watch, this is it!
Millennials confine 36 per cent of the consignors who predominantly use the resale landscape as a side hustle or as a way to re-invest in their wardrobes. Gen X, which represents 33 per cent of the users, follow their lead. They are the ones who genuinely intend to practice ecological stability.