![]() Luxury brands have largely stayed away from resale due to concerns over damage to full-price sales and brand dilution, but attitudes may be shifting. “It allows us to enter this market and test the demand of Farfetch customers for this kind of service.” “The pre-owned luxury market is growing rapidly,” said Giorgio Belloli, chief commercial and sustainability officer at Farfetch, who is spearheading the Second Life project. It is expected to reach $51 billion by 2023 and has already given birth to a number of successful luxury "re-commerce" players, including The RealReal and Vestiaire Collective. Last year, the global market for secondhand apparel totalled $24 billion, according to resale site ThredUp. “Whether through acquisitions, investments or internal R&D, those players who diversify their ecosystem will strengthen their lead over those who remain pure players relying solely on retail margins,” says the State of Fashion 2019 report.įarfetch's latest foray into resale comes soon after a move by luxury department store Neiman Marcus, which, last month, took a minority stake in secondhand luxury site Fashionphile. The next horizon for platforms like Farfetch, as they push to stay ahead of the curve, is business model diversification. ![]() The global market for secondhand apparel is expected to reach $51 billion by 2023. It generated just over $600 million in revenue last year, though its shares are down around 16 percent since it went public in September. For Farfetch, the Stadium Goods deal opened up access to a new segment of opportunity at a time when e-commerce players are engaged in what The Business of Fashion and McKinsey's The State of Fashion 2019 report describes as a "digital land grab."įarfetch is gaining on online luxury leader Yoox Net-a-Porter, which digitised the traditional wholesale model. The company has made no secret of its ambitions in the resale market snapping up peer-to-peer sneaker and streetwear marketplace Stadium Goods in December for $250 million, just three months after going public. Farfetch already offers a selection of vintage merchandise and is also examining opportunities in rental. The new initiative is part of broader plans at Farfetch - a marketplace that connects consumers with a global network of fashion boutiques and, increasingly, brands - to experiment with a range of new business models as the company seeks scale. ![]() The service, dubbed Second Life, will allow customers to trade in their old designer handbags for Farfetch credit that can be spent on new merchandise. “A luxury re-sale programme like Farfetch Second Life, allows us to enter this market and test the demand of Farfetch customers for this kind of service.LONDON, United Kingdom -Luxury e-commerce platform Farfetch Limited is testing the waters in the fast-growing resale market with the launch of a new pilot program. “Like the online luxury market, the pre-owned luxury market is growing rapidly, and is likely to double in size to reach $51bn over the next five years,” Farfetch’s chief commercial officer Giorgio Belloli said. If the customer accepts the price, a free courier will be sent to collect the bag, and the customer will be given credits worth the value of the bag to spend on Farfetch. ![]() READ MORE: JD.com revenues jump 24% as it extends partnership with Farfetchįirst, they will have to send information and pictures of their handbags, which will then be reviewed by staff, who will then suggest a price for the bag within 48 hours. The pilot is being led by vintage accessory and apparel curator Upteam, which has received “mentorship, knowledge, networking opportunities and early-stage funding” through Farfetch’s incubator programme Dream Assembly.Ĭustomer will now be able to sell their preloved handbags through Farfetch’s sister site. Its new pilot Second Life will allow its customers to trade second-hand designer handbags in exchange for credits which can be used to make purchases on Farfetch. Online luxury fashion retailer Farfetch is set to launch a new resale platform, aiming to capitalise on the increasingly lucrative pre-owned luxury market.
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