The luxury resale market is skyrocketing as climate change devastation becomes increasingly apparent, and consumers realise their buying habits can be part of the solution, accordingly to the Clair Report* (Oct 2022) by the world’s largest luxury accessory reseller, Rebag.** There’s also a sharp increase in Gen Z shoppers looking to dip their toes into luxury space, at a price point that lets them buy originality and uniqueness without major investment. In many cases, across all generations, it is more fashion-forward to buy preloved than shiny new.
The annually produced Clair Report determines primary and secondary market pricing, trends, and consumer demand in the luxury retail world. In particular, the Clair Report identifies which luxury brands hold their value and appreciate in the resale market.
In the latest Clair Report, Hermès, Louis Vuitton, and Chanel, respectively, held their place as the top three brands, thanks to their history, legacy and tightly controlled inventory. Hermès handbags retaining an average of 103% of their retail value; Louis Vuitton keeps 92%, gaining 12 percentage points over last year; and Chanel increased 12% from 75% to 87% average value retention.
Just because something is expensive doesn’t mean it will retain its value over time. The items that retain their value are made by iconic luxury brands that stand the test of time, such as Hermès, Chanel, Lulu Guinness, Prada, and Louis Vuitton. Most of some kind of historical legacy with price and inventory controlling (ie. they do not mass produce in high volumes). Craftsmanship is apparent. Many are statement pieces.
On the jewellery front, Tiffany & Co, Lanvin, Dior, and Cartier stand at the top of the resale value chart. Many pieces retain an average value of 95% of their retail value, while Rolex timepieces currently retain 82% of their retail price. Watches and fine jewellery by Cartier average 74% of their retail value on the resale market
According to the Clair Report, Tiffany & Co.'s retention value will increase next year due to a few factors, including changes in leadership, shift in target demographics and the appointment of new brand ambassadors. Also, watches will continue to climb on the secondary market. With luxury watches handcrafted in Switzerland, it's nearly impossible for watchmakers to create the supply to meet the demand, according to the report.
*Comprehensive Luxury Appraisal Index for Resale
**Rebag is an American resale marketplace that brings together an expertly vetted selection of more than 75 of the world's most coveted labels, such as Chanel, Hermès, Rolex, and Cartier