RESALE + THE ENVIRONMENT

BY: Ramona Duoba

The relationship between high-end brands and the second-hand resale market has always been complicated. To compromise exclusivity and scarcity was not negotiable for many renowned luxury retailers. “The secondary market for luxury goods has always existed in the shadow of the primary market,” according to a report from the Boston Consulting Group, but that’s beginning to change as demand for discounted pre-owned goods is giving rise to “one of the fastest-growing areas of luxury.”

Gucci, an Italian brand synonymous with opulence, realized that resale is another way to extend its products’ life span and partnered with The RealReal, the largest online marketplace for authenticated second-hand luxury goods. The partnership with TRR includes a Gucci e-shop stocked with consignors’ items and merchandise provided directly from Gucci.  

But, there’s more to it than just a business relationship. According to TRR, the consignment of Gucci clothing has saved 230 metric tons of carbon and 10+ million liters of water, as compared to the environmental costs of manufacturing those items for the first time. “Gucci is raising the bar not only for the fashion industry but for all companies by continuously innovating to make its business more sustainable,” said Julie Wainwright, founder and CEO of The RealReal. Wainright sees this attention on resale as a way to encourage consumers to “support the circular economy and join us in reducing the fashion’s carbon footprint.” For every Gucci item purchased or sold, the companies plant a tree through One Tree Planted, a global nonprofit working on reforestation.

GlobalData predicts the resale market, now worth $24 billion, will explode to almost $51 billion by 2023. This trend and the partnership between Gucci and TRR benefits younger consumers who want a good deal and turn to the second-hand market to buy high-end products at an accessible price.  Rati Levesque, COO and head of merchandising for The RealReal said, “Gen Z, millennials and men are the new faces of luxury shopping, and the brands in tune with what they want are rising to the top.” For consumers, economic uncertainty and access to virtual platforms like The RealReal have strengthened the appeal of second-hand shopping and environmental consciousness has helped to push the secondary market out of the shadows and into the spotlight.