Luxury retailer FarFetch has officially launched the Farfetch Second Life store, where consumers can sell pre-owned luxury products.
The move comes at a time when several luxury brands are eyeing the resale market, which is growing about four times faster than the primary luxury market, representing a $24 billion market today, according to Luxe Digital.
FarFetch initially debuted its Second Life program in the U.K. and the rest of Europe last year, allowing customers to sell their products for a FarFetch store credit.
Farfetch “was built on the premise of selling existing stock in small boutiques around the world — to better match supply and demand and reduce waste,” said Giorgio Belloli, the company’s chief commercial and sustainability officer.
The company’s rollout of the Second Life program marks an extension of its effort to promote sustainability in the fashion industry. “The secondhand market will continue to become more relevant and a larger part of every business,” Belloli noted in an interview with Elle. “Brands are starting to take more responsibility and ownership of what they have already produced.” Companies are seeing the value in products they have already sold, he added.
The program’s launch comes on the heels of a fresh round of investment from Alibaba and Swiss luxury fashion house Richemont. The two players are making a $1.1 billion investment in Farfetch, investing $300 million each, in addition to a joint $500 million investment in a newly formed subsidiary called Farfetch China.
Since the start of the pandemic, the luxury retailer has seen steady growth. In Q3, the company saw its Gross Merchandise Value (GMV) swell to $797.8 million from $492 million the year before. The company also saw its digital platform GMV reach $674.1 million this year, up from $420.3 million the year before.