Luxury brands are increasingly embracing the resale. For instance, Kering, the luxury conglomerate that owns Gucci, Balenciaga, and Alexander McQueen, has announced a $216 million investment in a French secondhand marketplace called Vestiaire Collective. This partnership aims to accelerate Vestiaire’s growth in the resale sector.
For Kering, partnering resale platforms could generate more revenue for its brands. The retailer explored a version of this earlier in the year, before investment, in which Alexander McQueen partnered Vestiaire on a program called “Brand Approved.” The luxury label contacted best customers, offering store credit to return garments, accessories, and shoes from previous collections, which would then be sold on Vestiaire.
Resale companies, along with some fashion brands, believe secondhand market allows products to circulate in the economy for longer. A survey conducted by Vestiaire and BCG found that 32 per cent of respondents sold secondhand goods so that they could buy new products. Alexander McQueen’s partnership with Vestiaire is designed to encourage the brand’s customers to shop even more frequently.