While luxury houses are increasing their prices, the market for second-hand goods in the higher price segment is booming. That’s a stroke of luck for Collector Square, a Paris-based online platform for luxury second-hand fashion – which is enjoying a record year.
The average price of Hermès bags has increased by 44 percent in two years (a Birkin 30 bag in black Togo leather bought on the second-hand market for an average of €14,500 in 2021 fetched almost €20,000 this year). The average price for a Patek Philippe Nautilus 5712 watch rose 172 percent, while a 1970s Alhambra chain by Van Cleef & Arpels costs 34 percent more. Four objects whose value is growing faster than the stock market. The second-hand market in the luxury sector is also thriving because the most sought-after objects are becoming increasingly rare.
A direct correlation between the market for new products and the market for second-hand
The Collector Square website benefits from the synergy between prices for new products and second-hand goods – 2021 was a record year for the platform. The average shopping basket for luxury goods is exploding in online retail. At Collector Square, the average online shopping cart is almost €4,500. Osanna Orlowski, co-founder of the site, who was appointed Deputy Managing Director last year, confirms this in a press release: “There is a direct correlation between the new and used markets in the luxury sector. When luxury houses raise their prices, sometimes significantly – more than 10 percent several times a year at Chanel, for example – the value of the objects on the second-hand market increases accordingly.”
The second-hand market is also very closely linked to the latest news and trends in the luxury sector. “We see peak sales and sales when re-editions of classics like Dior’s Saddle bag or Cartier’s Panthère watch come onto the market. But also during fashion weeks. Anniversary dates of collections, changes of designers or even announcements of the cessation of production (such as the recent Patek Philippe Nautilus 5711) are also reasons for sudden increases in value”, confirms Orlowski, who explains that the website does not only arouse the curiosity of fans beautiful products, but also attracts buyers and collectors who want to diversify their portfolio with specific pieces in the fields of leather goods, watches, artworks and jewelry.
For example, on Collector Square, every third request for leather goods is for a Hermès bag, and traffic on the site has doubled by 2021: it increased by 25% for wishlists, 13% for alerts and 40% for sales. Not surprisingly, the Birkin and Kelly models account for more than half of the luxury house’s bags sold. One in five bags sold is by Chanel – the Timeless model is by far the best-selling bag (30 percent) – while Louis Vuitton bags make up a third of the leather goods category. The Keepall model tops the list: one in three Louis Vuitton bags sold is a Keepall.
This article was previously published on FashionUnited.fr. Translation and editing: Barbara Russ