Should luxury brands get on board with the recommerce trend?

The luxury retail market continues to evolve and, in these times of increased focus on sustainability and economic pressures, recommerce has emerged as a growing interest. This is especially prevalent in the fashion industry, where online platforms like Depop, Vestiaire Collective, and ThredUp have found considerable success. The perception of luxury is changing, and this means that brands who offer higher-quality products should explore resale as a viable option.

Recommerce explained: How does it differ from thrift?

The term recommerce comes from a combination of resale and commerce. While it shares the same basic concept as thrift—shopping for pre-owned products—the experience and target markets differ. Both brick-and-mortar stores and online shops that offer exceptional goods either use consignment services or directly buy and then resell their branded items from consumers. 

Instead of offering everything like in a thrift store, they only sell brand-specific, highly curated, and carefully inspected items. Apparel resale often requires additional checks for authentication and hygiene-related issues. Buyers get a secondhand product, but it is nearly indistinguishable from the original in quality or care.

Recommerce and thrift shops have different primary goals

Both types of secondhand markets attract buyers who want items for less than the original retail price. However, thrift shoppers look for either cheap basics in order to save money overall or unique vintage finds that suit their quirky aesthetic. Recommerce market customers want items that provide higher quality, social status, or other perks while enjoying savings and a reduced environmental impact.

From the company’s perspective, the goals differ even more. Thrift shops want the maximum number of shoppers buying the maximum amount of goods. They make money based on quantity. There’s no reason to care about brand identity, customer relationships, or the latest marketing efforts.

Luxury goods and fashion brands who adopt a recommerce strategy cater to the individual consumer just as much as in their new-product retail space. They give personalized attention, exceptional pre- and post-sale customer service, and exceptional individual items to a discerning customer base. They make money based on quality, not quantity.

Advantages or entering the world of resale

Diversifying business models makes sense if revenue and profits are your main focus. Ultimately, all businesses must bring in money to thrive. The option to offer more goods and services while boosting overall brand appeal makes that possible even when discretionary spending trends downward. New revenue streams extend the lifecycle of individual products, allow you to cater to a wider audience, and lean into sustainable practices.

Consumer demand for pre-owned goods continues to grow

In a 2024 recommerce report, 86% of participants revealed that they engaged in recommerce or reselling in the last year. Nearly as many consumers intended to buy more pre-owned items in the future. Across all income levels and interests, the demand for environmentally friendly, budget-conscious, yet high-quality products continues to grow. The acceptance of resale extends to the highest echelons of luxury brands and aspirational consumers who want them.

Sustainability and environmental protection offer brand prominence

There’s a lot of talk about the benefits of a circular economy and an ever-increasing demand for sustainability across all retail sectors. Why not position your brand as one at the forefront of these discussions? Your brand story can include greener ideals, which will resonate with especially millennial and younger generation shoppers.

The resale model helps you expand into new, profitable markets

Not everyone can afford a brand new, top-of-the-line, name-brand item just released this year. That doesn’t stop the more budget-conscious consumers from wanting them. Although exclusivity is a hallmark of luxury brands, it makes sense to find new buyers in order to keep revenue high. Entering the recommerce space also helps retain past customers whose financial freedom may have shifted. Overall sales growth values retention and the creation of brand loyalty even more than attracting new buyers.

Luxury brands bring success with unique recommerce options

Find success by adopting tried and true recommerce methods, integrate them fully with your established business models, or try something unique. Personalized and customized retail experiences attract the highest value customers, after all, and you can deliver these benefits with pre-owned products just as well as new ones.

High-end retail brands participate on established online platforms

A variety of resale platforms exist online these days, and many of them specifically target fashion and accessory industries. Apparel resale is one of the most common and easiest to get involved with. ThredUp, The RealReal, Mercari, Vestiaire Collective, and even classics like eBay and Etsy offer opportunities.

Consider integration of resale items with new product sales methods

More traditional retailers take matters into their own hands, however, and retain control of the recommerce trend. Consider offering pre-owned items at your brick-and-mortar stores or have a special page online for these carefully curated products.

There are benefits to aligning recommerce efforts with everything you’re already doing for new items. First of all, it is much easier and less time consuming to do so. Also, your customers can more easily discover these affordable options, which may encourage multi-item sales. This method does not require the development of separate marketing strategies or expensive ad campaigns in many cases either.

Create maximum exclusivity with recommerce special offers or events

Explore exactly why your brand wants to offer pre-owned items, how they align with your brand identity, and what your targeted consumer base wants from them. The more personalized shopping data you have, the easier this process becomes. Once you figure this out, you can create highly unique and effective marketing strategies for these products.

Exclusivity? Hold an event to push vintage or no-longer-available styles to people who do not want to feel like they missed out on unique items. Consider appointment only or in-store or online personal shoppers to make recommendations based on the individual customer’s past purchases and style.

Sustainability? Market recommerce collections as a new push for eco-consciousness and responsible luxury paired with various non-profit organization support programs. Educate or even offer workshops to promote the benefits of a more circular economy.

One of the most important things to remember is that the type of discerning customers your brand attracts is not only looking for bargains. Make the recommerce trend more attractive by emphasizing the exclusivity of having vintage styles, limited availability, or bringing back sought-after classics. The right impression leads to higher customer satisfaction and ultimately, more sales.