More people are familiar with resale in 2022, Gen Z interest up the most: RealReal report
The resale market continues to grow amid shifts in customer behavior and spending habits, according to the 2022 Luxury Resale Report by The RealReal.
The annual report is powered by data from the world’s largest online marketplace for authenticated, resale luxury goods, backed by more than 28 million members and more than 26 million items sold to date.
In particular, the report highlights how resale continues to attract shoppers, as 27% more people are familiar with resale over last year. The RealReal member base grew by 23% in the first half of the year, adding 5.3 million new shoppers since 2021. Moreover, customers are buying more as 44% more items were purchased at The RealReal over the past year.
“In a world that’s currently filled with the unknown and the unexpected, consumers are finding escapism with the reliability and discoverability of the secondhand market,” explained Rati Sahi Levesque, co-interim chief executive officer, president, and chief operating officer of The RealReal.
“Between primary market supply constraints, inflation woes, and the acceleration of the climate crisis, shoppers and consignors alike are seeing the economic, environmental, and emotional value of resale. Through resale, consumers are becoming increasingly savvy, they're exploring new areas of investments, and they’re engaging with circularity more than ever before.”
When it comes to demographics, Gen Z visits The RealReal 35% more than they did last year; the greatest growth of any demo. Still, Millennials are the largest resale generation, representing the largest volume of buyers and sellers on the platform.
They are also shopping for different things. While Gen Z is spending 186% more on pendants, millennials are spending 107% more on unbranded engagement rings. Similarly, Gen Z is shopping skin-baring mini skirts, and Cartier, while Millennials are choosing practical pants, and Patek Philippe.
In the first half of 2022, the platform also saw sales for collectibles grow 78%. In particular, demand for collectible, vintage clothing was up 439%, outpacing every other vintage category.
In terms of brands, Balenciaga experienced the greatest demand growth, up 41% year-over-year, of any top ten brand — Gen Z being the primary drivers. Likewise, Dior landed in the top 10 for the first time since 2019, up 31% year-over-year, and the Vintage Icon Gucci Blondie was deemed the “It Bag” of 2022.
“It’s no surprise to see Christian Dior and Balenciaga are our most notable list shifters this year. Both brands have two common themes: the resurgence of their iconic bags and celebrity appeal. The Lady Dior bag, made popular by Princess Diana in the ‘90s, once again surged in demand, this time among all age groups,” explained Sasha Skoda, senior director of women’s and fine jewelry.
“Celebrities such as Bella Hadid and Cardi B have been spotted in John Galliano’s quintessential early aughts designs for Dior, driving the brand to the top 5 spot in just two years. Balenciaga brought on Justin Bieber and Kim Kardashian as ambassadors, creating widespread appeal and bringing the brand back into the top 10 list.”
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