Pre-owned luxury is exploding, growing approximately three times faster than the primary luxury market globally. According to a new luxury trends report produced by Farfetch, which analyzes how luxury consumers interact with conscious products, including pre-owned and circular services on its eCommerce site, the luxury retailer found that the COVID-19 effect seems to be accelerating this conscious trend, especially as consumers seek to maximize value for money, avoid waste, shop sustainably and leverage the resale market to fund new luxury purchases.
In fact, the luxury retailer found that the number of its customers who purchased a product from its conscious collection increased by 60% year-on-year in 2021.
Furthermore, France experienced the most substantial growth globally in conscious shopping on Farfetch, recording an increase of 149% year on year in gross merchandise volume (GMV) from conscious products.
Meanwhile, South Korea demonstrated the most significant increase in pre-owned spend per item (ASP), which increased 116% year on year.
“As the platform for luxury, we have a unique view derived from over 3 million active consumers and over 1,400 luxury sellers on the marketplace. It’s clear from the data that consumer appetite for more conscious and circular ways of engaging with fashion continues to grow and that brands are responding to the opportunities that this trend presents,” said Thomas Berry, senior director of sustainable business at Farfetch, in a company statement.
“In line with our Positively Farfetch strategy, we hope the insights in this year’s report help our partners and the wider industry to continue to think, act and choose positively.”
Farfetch also revealed that shoppers want to be more responsible, as searches for conscious product terms on Farfetch increased by 93% year on year, and the sale of conscious products grew 1.8x faster than the marketplace average in 2021.
Additionally, Farfetch customers are also focusing on buying quality pieces with longevity in mind, with 79% adding that they are now looking to luxury fashion for sustainability reasons. More specifically, customers believe luxury products are more likely higher quality and longer-lasting than fast fashion pieces.
But there’s more. The demand for pre-owned luxury has also grown on Farfetch, as the eTailer reported that views of pre-owned items increased 150% year on year and that 20% of survey respondents purchased a pre-owned fashion item in the past year.
Many of these shoppers are high-value customers for the company, as 65% of pre-owned GMV comes from Farfetch’s highest-spending private client and platinum customers.
Circular fashion initiatives are also resonating with Farfetch customers and are “attracting new and valuable customers,” looking to extend the life of their items as 22% of survey respondents revealed that in the last 12 months alone, they have started selling fashion items they no longer use. In addition, 20% added that they had donated a used fashion item last year, and 13% said they had repaired one.
Brands and boutiques on its platform have dialed in on these findings and have responded to the rising consumer trend by consolidating, increasing, and honing in on their commitments to improve their impact on people, the planet, and animals.
Farfetch now sells 220 brands highly rated by Good On You, a sustainable and ethical fashion brand rating platform, which is up 13% year on year. The number of conscious products on the platform supplied by its network of boutiques has also grown by 40%, while GMV from conscious products from boutique partners is up 46%.