COVID-19 and Luxury Retail
The concept of reselling luxury goods in a secondary or pre-owned market such as clothing, handbags, and accessories from countless designers is fairly modern and is definitely taking a hit from COVID-19. Buying and selling luxury items pre-owned has never been hotter with companies like the RealReal, Rebag, and other online marketplaces/ platforms creating the niche. Even though the trend for secondary luxury was strong in 2019, 2020 shows a different trend as consumer behavior is adjusting to COVID. Many consumers don't feel the need to purchase luxury items as they have to reevaluate their finances and priorities. There is also an influx of supply into the market as people are tight on cash and see an opportunity in selling their luxury items while at home, but it doesn't mean there's demand to match it, causing prices to go down. Many young shoppers also value the idea of "environmental" shopping. Rather than produce new items, young buyers would rather purchase pre-owned goods. Physical retail stores are also in trouble as brands are thinking of just selling directly to the consumer and just skip brick and mortar. The luxury resale market will fluctuate and have to adjust to a post-COVID world of business casual and younger buyer's needs.
