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It’s becoming increasingly clear that many consumers see luxury accessories such as handbags, watches and jewellery as investments that can gain value over time, and offer a return on investment in the resale market. According to a survey conducted for “The Rise of Resale: Luxury as Currency,” a new report from BoF Insights developed in partnership with eBay, half of luxury shoppers in the US polled said they are monitoring the market value of their luxury accessories — and more than half believe this value could appreciate.
In the latest BoF LIVE, Rahul Malik, BoF’s managing director of North America and head of new business, was joined by Tirath Kamdar, general manager of luxury at eBay, and Sarah Davis, founder and president at online resale site Fashionphile, to explore this latest piece of research and investigate the potential impact on the luxury resale market.
“Demand is actually rising and supply is not keeping up, there’s a huge scarcity factor,” said Kamdar. “As a result we’ve seen prices rise in the secondary market… that’s also a huge driver to how luxury is becoming a currency.”
The conversation drew on the report’s investigation into understanding other key elements of luxury as an asset class, including the growing role of authentication, and how the secondary market is now actually driving change in the primary market as a result, from pricing to traceability of the materials they use.
