The luxury resale market is booming, but at what cost? As the demand for pre-owned designer goods skyrockets, the need for authentication has never been more critical. But here's the catch: even luxury brands can struggle to spot fakes!
A recent report by Boston Consulting Group and Vestiaire Collective reveals that the resale market for fashion and luxury items is growing at a staggering 10% annually, outpacing the firsthand market threefold. By 2030, this market is projected to reach a whopping $360 billion, up from $210 billion today. But with great demand comes the challenge of trust.
Counterfeit manufacturing has become so advanced that even luxury brands can fall victim to fakes. Imagine paying thousands for a Hermès bag or a Rolex watch, only to discover it's not the real deal. Some counterfeits, dubbed 'superfakes,' are so convincing that they use materials from the same suppliers as the original brands. This has led to a growing concern in the industry.
The traditional 'buyer beware' approach is no longer enough. Resale platforms are stepping up their game, investing heavily in authentication. Carousell, a Singapore-based marketplace, has opened a physical store where sellers can have their luxury items appraised before resale. The verification process is meticulous, examining not just the material but also intricate details like stitching and stamping.
Bunjang, a South Korean platform, has developed an advanced authentication system combining visual inspections, scientific equipment, and AI. This system boasts a 99.9% accuracy rate and can adapt to evolving counterfeiting methods. Both platforms agree that authentication is not just a necessity but a business booster.
The luxury segment is thriving, with Bunjang reporting over a quarter of its platform's annual gross merchandise value coming from luxury goods, which saw a 30% growth in the first half of 2025. Carousell, too, has witnessed strong interest and growth in this segment since its online launch in 2012, leading to the opening of its first physical store.
But why the surge in secondhand luxury? It's not just about affordability, which is the top reason for 80% of buyers. Shoppers are also attracted to rare and discontinued collections no longer available in stores. Millennials and Gen Z, the next wave of luxury consumers, are driving this trend, buying and reselling items quickly.
As the market evolves, the question remains: How can buyers ensure they're getting the real deal? And is the extra cost of authentication worth the peace of mind?
