More people are purchasing luxury brands on resell sites for lower prices

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KCBS Bloomberg Tech and Business Report 6 min 1 speaker 6 chapters transcribed 8 days ago
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What is driving the boom in the clothing resale market?

Margie Shafer 0:00
Time now for our daily tech and business report. The resale market for clothing is on fire, which labels people are shopping for might surprise you. For more, we turn now to the KCBS RingCentral Newsline to speak with Bloomberg's Felix Salmon. Thank you so much for being with us this afternoon.
Felix Salmon 0:19
I'm very happy to be here.
Margie Shafer 0:21
I'm thrilled to have you here. This is very interesting for a lot of the people in this room. So tell us what's going on. What is happening in the fashion industry and the resale market?
Felix Salmon 0:32
So it's booming.

Which luxury and fast‑fashion brands are thriving on resale platforms?

Felix Salmon 0:33
If you add up all of the top luxury brands and even the big fast fashion brands and put them together, they don't even reach the $289 vintage, resale, secondhand, whatever you want to call it. It's doubled in like five years. And people are realizing that you don't need to pay for retail. You can get really spectacularly good clothes at well under half price just by going onto these resale sites, which are really easy to navigate now, very easy to use. And a whole new kind of circular economy has sprung up that people are taking full advantage of.
Margie Shafer 1:15
First of all, can you name drop some of the ones that are more popular and also if you could name drop some of the brands that are really getting traction?
Felix Salmon 1:24
So it's kind of interesting. The brands that tend to do the best are the ones that have like really good marketing and really good just reputation for the brand as a whole. I'll give you two which are

Where can shoppers find popular resale sites and how do they differ?

Felix Salmon 1:39
um good examples one would be loewe which you know just has this great reputation great branding you've got ads everywhere it's high-end luxury and then the other one is a much smaller swedish label called totem which you know it's one of those if you know you know labels but it has very iconic silhouettes it never goes out of style people it's very comfortable and people get very jealous if you're wearing it and people will pay top dollar for it in contradistinction like at the other end of the spectrum something like dolce gabbana oscar de la renta they've been around a long time individual pieces people might like but the brand as a whole is not really recognizable people won't know when you're wearing it those those um labels often sell for you know maybe 15 of their retail price if you want them then they're a great buy
Margie Shafer 2:33
And so are people just going to like, I mean, I know RealReal, that started here in San Francisco. What are some of the other places?
Felix Salmon 2:42
Vested, Vestiaire Collective, sorry, Vinted, Vestiaire Collective. There's a big Japanese retail chain called Vestiaire. second time around, I think. But you'll find actually or Depop is really popular among the younger crowd. There's no shortage of places where you can find this, including retail locations in person where you can just go in and try things on and see what fits just like you would in a regular store.
Margie Shafer 3:16
So what does it take for certain garments to hold their value across multiple owners?

What factors make certain garments retain value across multiple owners?

Margie Shafer 3:24
What is it? And also when we talk about fashion, it can change so quickly. Is there a certain era that's just always going to be?
Felix Salmon 3:32
So what's interesting is that the items that hold their hot today here today gone tomorrow um that aren't really associated with a vintage um a particular year it's things like totem like you or the rose say you you could never tell by looking at the piece like what year it was released um they just have a few classic timeless silhouettes and those and especially if they're very well made they have like good materials they have high quality zippers that kind of thing that is the kind of stuff that holds its value something that is you know some like balenciaga sneaker that was really trendy three years ago will probably be almost impossible to sell today
Margie Shafer 4:21
how are luxury brands uh faring with this uh popularity of this vintage market
Felix Salmon 4:29
It's such a good question. I think my gut tells me they hate it, right? Because it's obviously cannibalizing their sales. Something, especially among younger consumers, over half of younger consumers are like, well, if I want something from this brand, I'm going to buy it on the resale market because...

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