Valued at $618 million in 2023, the luxury pre-owned market in India is projected to grow at a CAGR of 10 per cent to reach approximately $1,556 million by 2032. This substantial growth underscores the rising demand for pre-owned luxury goods across categories such as jewelry, fashion, art, etc according to Almona Bhatia, Chief Business Development Officer, Tata CLiQ & Tata CLiQ Luxury.
Several factors contribute to the rise of the luxury pre-owned market. A growing awareness of sustainability is prompting consumers to embrace circular fashion, with pre-owned luxury items offering a way to reduce environmental impact while still enjoying high-end products. Pre-owned luxury goods also appeal due to their unique charm, often providing access to rare, discontinued, or vintage pieces that are no longer available in the primary market.
India’s luxury pre-owned market is primarily driven by affluent households with annual incomes exceeding Rs 20 lakh. Categorised as Elite and Elite Plus, these households are prevalent in metro, Tier I, and Tier II/III cities, with the top 20 cities accounting for about 60 per cent of such households. The growing number of affluent consumers is a key factor in the market’s expansion with their numbers expected to rise from 60 million in 2023 to 100 million by 2027.
Gen Z consumers are also playing a significant role in this growth. Known for their digital savviness and strong commitment to sustainability and ethical consumption, Gen Z shoppers are increasingly turning to the luxury pre-owned market to find unique, high-quality items that align with their values. The COVID-19 pandemic has accelerated the shift to online shopping, further boosting the luxury pre-owned market.
However, the market continues to face certain challenges, particularly around building consumer trust. Concerns about authenticity, quality, and transparency can deter potential buyers from purchasing pre-owned items. To address these issues, platforms like Tata CLiQ Luxury are implementing stringent quality checks, certification processes, and providing detailed product information to reassure consumers.
Another challenge is changing consumer perceptions, especially in a culture where newness is often associated with prestige. However, with more consumers recognising the environmental and economic benefits of pre-owned luxury, consumers’ attitudes are gradually shifting.
The luxury pre-owned market in India is poised for significant growth, driven by increasing affluence, a rising Gen Z consumer base, and a growing emphasis on sustainability. As platforms like Tata CLiQ Luxury continue to expand their offerings and build consumer trust, the market is expected to thrive in the coming years, adds Bhatia.
