As Prada and Chanel hike prices, a secondhand luxury era begins

The resale luxury market in Korea is booming, and projected to reach 43 trillion won ($31 billion) as consumers turn to secondhand goods amid price hikes.

A pedestrians walks by a Prada store in Seoul on Feb. 11. [YONHAP]

As luxury brands push through wave after wave of price hikes, a different market is booming: resale. Once a niche for bags and watches, secondhand luxury in Korea is surging into a 43 trillion won ($31 billion) industry this year.

Platforms specializing in pre-owned goods are expanding offline stores to boost accessibility while e-commerce companies are adding resale categories.

Cartier will raise prices on some jewelry items, including the Juste un Clou line, by 2 to 5 percent starting Wednesday, industry insiders said Monday. This marks the French luxury jeweler's third increase in Korea this year, following hikes in February and May.

Prada lifted prices across all products in Korea by 7 percent in February. Louis Vuitton and Chanel raised prices two and three times, respectively, in the first half of the year.

Pedestrians walk by a poster in Seoul advertising Cartier's watches on June 4. [YONHAP]

Soaring prices have pushed more consumers toward resale. The global secondhand luxury market reached 45 billion euros ($53 billion) in 2023, up 125 percent from 2017, according to consulting firm Bain & Company.

The Korean market is also expanding quickly. Bunjang, a resale platform widely used in the country, analyzed about 21 million fashion transactions for its luxury resale report. It expects the domestic resale market, worth 4 trillion won in 2008, to reach 43 trillion won this year. Six out of 10 respondents said they had purchased secondhand luxury items.

What once centered on handbags, watches and shoes has broadened to include children's goods and accessories.

“In the past, bags accounted for more than 50 percent of transactions, but now, categories like tableware and kids’ clothing are growing," said Kim Hyun-bok, CEO of Gugus, a luxury reseller.

"Demand has also increased for rare pieces created through collaborations with well-known artists and celebrities," Kim added.

Once centered on handbags and shoes, Korea’s resale luxury market now includes accessories and children’s goods. A Burberry bear keyring is displayed at Gugus’ store in Myeong-dong, central Seoul. [GUGUS]

Companies are working to expand customer touchpoints.

Bunjang said luxury accounts for about 25 percent of its annual transaction value, or roughly 407.5 billion won. Since 2021, it has operated offline shops showcasing secondhand watches to strengthen its authentication services and streamline buying and selling.

CEO Choi Jae-wha told the Luxury Innovation Summit in Geneva earlier this month, “In the fast-growing resale market, error-free authentication technology will build brand trust.”

Gugus, which runs 28 stores, has rolled out a “see-and-buy” service allowing customers to inspect items in person before purchase. The company plans to add 20 more stores by next year.

“Unlocking items from people’s closets is the key in this market. We aim to expand beyond department stores and commercial districts into residential areas to make luxury resale easier,” Kim said.

Gugus recorded 225.5 billion won in transactions last year, up 46 percent from 154.5 billion won in 2021.

Gugus’ AK Suwon branch in Suwon, Gyeonggi [GUGUS]

E-commerce companies are also pushing into resale. Naver’s limited-edition platform Kream added a “used” tab in August. From Aug. 1 to 13, secondhand luxury transactions surged 588 percent year over year.

"Our broad product lineup and thorough authentication have driven strong growth," a Kream spokesperson said. "We plan to expand to brands popular among people in their 20s and 30s, such as Celine and Balenciaga."

Coupang has introduced brands like Hermès, Chanel and Gucci through its Rocket Delivery service. After acquiring luxury platform Farfetch in 2023, Coupang began linking its resale luxury business with the vertical service R.Lux in August.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY NOH YU-RIM [kim.juyeon2@joongang.co.kr]