The figures are unanimous. In the luxury sector, the once-neglected second-hand market is experiencing a dizzying boom, driven by the powerful force of digitalization. This is evidenced by a flourishing 2021 for Collector Square, the current European market leader.
Collector Square sees double-digit growth, with a 40% increase in turnover compared to 2020. A real boom for the second-hand market, which has long been criticized by the luxury sector, considering it degrading to the image of haute couture houses. Now key players in this market, platforms like Collector Square represented more than a billion euros in 2020 in the fashion sector. For 2021, online sales represent 85% of the total, with an average basket of around 4 euros.
Collector Square: an average basket that is soaring with the new goods market
The health crisis has had its share of consequences on all sectors, including the luxury sector. While luxury brands have had to increase their prices, the second-hand market has found an unmissable opportunity, reaching an average online basket of €4. Osanna Orlowski, Deputy Managing Director of Collector Square, explains this event in these words: " There is a direct correlation between the new and pre-owned markets in the luxury sector. When luxury brands increase their prices, sometimes substantially (more than 10 percent several times a year at Chanel, for example), the value of items on the pre-owned market increases accordingly. ».
The high level of the average basket is explained by the impeccable quality of the pieces put on sale, according to the words of Osanna Orlowski, co-founder of Collector Square, appointed Deputy Managing Director in 2021: “ Unlike peer-to-peer sales platforms, COLLECTOR SQUARE is a unique model positioned in the highest-end segment of the second-hand market. Our average online price is among the highest on the market. Every piece, without exception, is appraised before being listed online and stored in our warehouses, giving us complete control over the item's life cycle. "Across all the products in buyers' baskets, two trends are at the top of sales...watches and vintage fashion.
Watchmaking at the forefront with Collector Square
Compared to 2020, Collector Square's turnover in terms of watchmaking has made a leap of 67% at the end of the first half of 2021. A mature market with around thirty years of existence, second-hand watches are prized by both collectors and nostalgic enthusiasts, with increasingly sharp knowledge, as stated by Clotilde Rafine-Ricard, head of the watchmaking department at Collector Square: " The level of demand from buyers is very high, and concerns both the choice of brand, the reference, and the condition of the piece. ».
On the podium of the most popular brands, we find Rolex, Patek Philippe, Cartier and Omega. Claiming nearly 38% of sales, Rolex has posted a 40% increase since January 2021, with very strong demand for the Submariner reference 5513 due to its rarity and very vintage style, closely followed by the Daytona reference 16520, highly prized by collectors, with its extremely high-performance Zenith movement. On the Cartier side, the Tank remains a benchmark, with an increase of more than 35% in ten years, followed by the Panthère, the Santos and the Must, claiming one in three watches sold at Collector Square. At Omega, the Speedmaster takes the lead with a price almost twice as high in ten years (106%), with a special mention for the Reduce, of extraordinary rarity on the market, being the first watch to go to the moon.
Finally, as proof of the influence of the new-build market on the second-hand market, the cessation of production by Patek Philippe of the Nautilus reference 5711/1A has resulted in a surge in prices on the secondary market. Collector Square also achieved a record in 2021 for this same model, reference 5712, with an amount of 94 euros, the price of which reached dizzying heights in 500 with an average price of 2021 euros.
An unprecedented craze for vintage fashion
By periodically returning to fashion, vintage takes on a certain timelessness and embodies the philosophical link between past and present. Interest in this phenomenon has grown tirelessly, driven by the accelerated digitalization of major luxury brands due to the health crisis. This trend has given rise to intense speculation, particularly through platforms like Collector Square, where anyone can access vintage luxury goods with disconcerting ease.
So, there is no shortage of illustrations of this success at Collector Square... in fact, the Hermès brand claims one in three requests for leather goods, with the Birkin and the Kelly taking up more than half of the brand's bags (respectively 84% and 70% of traffic) Hermès). Birkin sales exploded in 2021, with traffic doubling, illustrated by a 25% increase in wishlists, 13% in alerts and 40% in sales. For example, the Birkin 30 has an average price that has increased by more than 44% in two years, ranging from 14 euros in 500 to 2021 euros in 20, and a sales record of 000 euros for the green crocodile version.
As for Chanel et Louis Vuitton, the craze is still there... Chanel represents 20% of bag sales, a market dominated by the Timeless model which represents 30% of sales and traffic which doubled in 2021. As for the 2.55 model, demand is constantly growing with a 26% increase in traffic. At Louis Vuitton, the Keepall model holds the place of the best-selling Louis Vuitton bag in 2021, and represents a third of sales.
Second-hand luxury market: major brands join the race
This craze for the second-hand market represents a real turning point for the fashion and luxury market. A study conducted by the American specialist website ThredUp states that by 2027, sales of second-hand clothing are expected to surpass those of major fashion houses. These forecasts have put pressure on the latter, forcing them to adapt and adopt a similar approach to avoid being left behind. Second-hand clothing has thus become an opportunity for major brands, which previously considered this market degrading to their brand image.
An opportunity that several luxury houses have not hesitated to seize, like Gucci who created the Gucci Vault platform, a unique concept store filled with unique creations in limited quantities. These pieces were (re)created from the brand's iconic vintage clothing and accessories, restored and customized by the house's artisans. The House of Valentino is also entering the race, creating the "Valentino Vintage" initiative, which is riding the wave of vintage fashion enthusiasm in the second-hand market. Valentino has dedicated a page on its website to this project, which presents the possibility for customers to resell the brand's clothing or accessories and the points of sale dedicated to this.
Erdan Nareh-Telrit
