Luxury resale market grows as consumers seek purposeful purchases
For the first time since the 2009 global financial crisis, spending on new personal luxury goods has declined. If proposed US tariffs on imports go into effect, luxury’s slowdown could accelerate even further.
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But one part of the market is doing the opposite. The global pre-owned luxury market is outpacing the growth of new luxury sales by 7%.
“Luxury is still in demand, but today’s shoppers are calling the shots,” says Michael Zahariev, co-founder of Luxity.
“Escalating prices, greenwashing, and concerns around quality have dimmed the spotlight on traditional luxury, prompting buyers to be more intentional about their purchases by going the pre-owned luxury route.”
Who’s buying designer resale?
Luxury resale isn’t just for the rich. Luxity’s latest figures show that while high-net-worth individuals love pre-owned for limited-edition pieces, vintage gems, and brands unavailable locally, more everyday shoppers are turning to resale for affordable access to designer fashion.
As Luxity’s reach expands beyond its flagship stores, online sales from areas outside South Africa’s major cities are on the rise, proving that luxury lives well beyond Sandton and the Atlantic Seaboard.
It’s not just about buying, either; 52% of revenue comes from shoppers who also sell to Luxity and reinvest that money into new finds.
Luxury with purpose
Millennial and Gen Z shoppers’ preference for pre-owned is also largely informed by their concerns about sustainability.
“They want luxury fashion choices that don’t cost the Earth - literally,” shares Zahariev. “It’s about investing in quality pieces that last, not trends that fade.”
Sure, the price tag on a pre-owned designer item might be steeper than a fast fashion find, but the cost per wear works out differently.
“Fast fashion tends to fall apart after a few wears. But with pre-owned, buyers wear it again and again. And, when they’re ready, they can resell it, reinvest, and keep their wardrobe evolving without constantly consuming,” he explains.
There is also the environmental reality. Fast fashion is one of the most polluting industries in the world, responsible for roughly 10% of global carbon emissions, more than what’s generated by the entire European Union.
What’s more, one garbage truckload of clothes ends up in landfills or incinerators every second. Fast fashion is fleeting and deeply unsustainable.
“Conscious consumers are starting to ask smarter questions,” says Zahariev. “Where did this come from? What’s the footprint? Who made it? Pre-owned gives you the chance to buy into luxury without buying into waste.”
Inside the business of circular fashion
Circular fashion, the practice of extending the life of clothing through resale and reuse, is gaining momentum around the world. And platforms like Luxity are proving that it’s not just an ethical alternative but a commercially viable one too.
The company was recently recognised as one of South Africa’s top 50 Growth Champions and was featured on the Financial Times’ list of Africa’s Fastest Growing Companies for the third year running.
With an absolute growth rate of 249.92%, a compound annual growth rate (CAGR) of 51.82%, and annual revenues surpassing R60.4m, Luxity’s performance reflects how circular fashion is gaining traction in South Africa, with conscious consumption becoming both culturally and commercially relevant.
“Today, luxury is less about excess and more about access. As the pre-owned market continues to grow, one thing is clear: real style is defined by purpose, not price,” concludes Zahariev.