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Luxury buying patterns have changed dramatically; Leaders emerge in expanding resale market
SAN FRANCISCO, Sept. 14, 2021 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today released findings from its latest Luxury Shopper Insights Study. Based on national research led by Lisa W. Miller & Associates Research, the 2021 study uncovers and identifies key behavioral shifts among luxury shoppers and their impact on retail and resale.
“As the luxury resale market continues to evolve, its growth is significantly outpacing the primary market,” said The RealReal Chief Marketing Officer Orr Shakked. “There is a distinct divide in resale, with just five marketplaces, including The RealReal, having meaningful aided awareness. In fact, The RealReal has seen a 14 point awareness increase since 2019, a more than 50 percent greater increase than any of the other 24 resale brands researched.”
Luxury buying patterns have changed dramatically
Outlets and department stores saw the greatest declines in luxury purchases, down -10 pts and -7 pts since 2019
Luxury resale has attracted more new buyers since 2019 than all previous years combined
Male shoppers represent the greatest luxury growth opportunity
Men are ~3X more likely to exclusively buy luxury
Men are 1.5X more likely to constantly clean out their closets
Awareness drives major divide among resale marketplaces
Among 24 resale players researched, only these five have aided awareness above 30%: eBay, Poshmark, thredUP, The RealReal and Sotheby’s
Nearly half of luxury shoppers plan to buy luxury resale
48% of luxury shoppers are very or extremely likely to purchase luxury resale over the next two years (+6 pts since 2019)
Resale purchase intent is up across every luxury category, most notably jewelry and watches (+13 pts and +12 pts since 2019)
In evolving market, customer experience is critical to adoption
While The RealReal’s NPS improved, many other players declined, indicating the need for improvement to continue market expansion
“Resale has seen record growth over the past two years, but only 24 percent of luxury shoppers currently purchase pre-owned pieces. Bringing more new shoppers and consignors into the circular economy is essential to creating a more sustainable future for fashion,” stated Julie Wainwright, founder and CEO of The RealReal. “We’ve seen a 13 percent increase over the past two years in The RealReal shoppers citing sustainability as a deciding factor to purchase from us. It’s critical we continue raising awareness of the negative environmental impact of fashion and resale as a solution every one of us can adopt to help reduce the garbage truck’s worth of textiles that are landfilled or burned every second.”
To view The RealReal’s 2021 Luxury Shopper Insights Study, please visit www.therealreal.com/trr/2021-Luxury-Shopper-Insights-Study.
About The RealReal Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with more than 23 million members. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have hundreds of in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by thousands of brands across numerous categories—including women's and men's fashion, fine jewelry and watches, art and home—in support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We do all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as handling shipping and customer service. At our 17 retail locations, including our 14 shoppable stores, customers can sell, meet with our experts and receive free valuations.