Luxury Brands Are Watching a $59B Secondhand Boom From the Sidelines, And It’s Costing Them

The fashion industry’s hottest business isn’t about selling something new. The luxury resale market surpassed ~$59B (€50B) last year, matching the entire off-price outlet channel and becoming luxury’s third-largest revenue stream, according to Bain & Co. The problem? The brands whose coveted handbags, watches, and suitcases fuel that number are barely profiting from it.

• Gen Z is leading the luxury shift, with nearly half of handbag purchases now happening through secondhand retailers, and pre-owned goods rising to 28% of wardrobes since 2020.
• Resale platforms like The RealRealREAL
  and Fashionphile are thriving while brands struggle to police trademark use by small resellers on livestreams and ShopifySHOP
  .

The blueprint exists: Rolex’s certified pre-owned program crossed $500M in sales last year by outsourcing logistics to third-party retailers while keeping strict control over brand standards. Analysts say other luxury houses could copy the model through partnerships with resale platforms or department stores like Neiman Marcus, which already lets shoppers trade in used goods for credit via The RealReal and Fashionphile. Sitting on the sidelines is set to be luxury’s quiet surrender of the resale boom.