Sustainability And Affordability Leading The Growth Of The Second Hand Luxury Goods Market

Despite the tough economic times, the global luxury goods market has seen a significant growth in sales. The same proves true in New Zealand, specifically, with many New Zealanders purchasing luxury goods like accessories and clothing at record rates. One of the fastest growing markets within the luxury goods sector is the second hand and vintage market.

Millennials and Gen Zs are at the forefront of this second hand luxury goods market growth. This is because these two generations exhibit the highest degrees of awareness and concern about sustainability issues. Their reasoning is simple – purchasing high-quality second hand items as opposed to cheaper fast-fashion options can lead to decreased waste and greater general environmental sustainability. Lower demand for fast fashion can also improve global labour practices.

Since a main factor of what makes luxury goods ‘luxury’ is their better quality and greater lifespan, many consumers are willing to pay a premium, even for second hand items, rather than spend less on lower-quality pieces. Due to the currently tough economic times and various past monetary setbacks faced by, especially, Millennials, however, few in the younger generations can afford to purchase luxury goods new. Second hand items are characteristically cheaper, so these younger cohorts are willing to buy pre-owned items as a way to at once promote sustainability and gain access to higher-quality pieces that would otherwise fall outside of their financial reach.

It is predicted that by around 2026, the global second hand luxury goods market will outpace the fast-fashion industry. Currently, second hand designer handbags, jewellery, watches, and shoes, are leading the charge, with other items like coats and general clothing pieces following close behind. Consumers are also willing to fork out extra for limited edition vintage pieces. And luxury brands themselves are embracing second hand sales.