Luxury Resale Market Surges Amid High Prices

The luxury resale market is experiencing unprecedented growth, outpacing the firsthand market by as much as three times. Recent reports indicate that 59% of shoppers plan to shop resale in 2026, signaling a major shift in consumer behavior. By 2030, the global resale market is expected to reach a valuation of $360 billion.

Retailers such as Fashionphile and The RealReal have seen significant success, posting double-digit percentage gains in 2025. The surge is driven by rising prices in the luxury sector, inflation, and tariffs, which make secondhand items a more accessible option. Additionally, the proliferation of online marketplaces and stricter authenticity measures has increased consumer trust. The trend has also changed how people shop, with many viewing luxury goods as a form of capital.

The secondhand fashion sector is currently expanding at a rate up to three times faster than the primary luxury market. According to a report published in November, 59% of consumers expressed a likelihood to purchase resale items in 2026. This momentum is expected to continue, with the global resale market projected to hit $360 billion by 2030.

Major luxury secondhand retailers are already capitalizing on this trend. Both Fashionphile and The RealReal reported double-digit percentage gains throughout 2025. The market's expansion is visible in physical locations as well; the Fashionphile flagship store in New York City currently stocks approximately 15,000 items for resale, including hundreds of Hermès Birkins known for their high return on investment.

Several economic and logistical factors are fueling the rise of the secondhand luxury market. Since the pandemic, luxury brands have increased prices to capitalize on higher consumer spending power. These prices have continued to climb due to inflation and tariffs, making the secondhand market a more financially viable alternative for many shoppers.

Accessibility has also improved significantly. Online marketplaces now account for 88% of all resale spending, making it easier for consumers to buy and sell items. Furthermore, the implementation of stricter authenticity guardrails has alleviated concerns regarding counterfeit goods, boosting shopper confidence. As noted by industry experts, the market is becoming more sustainable and is integrating into the standard way people engage with the fashion category.

For many consumers, luxury shopping is no longer just about aesthetics; it is about Return on Investment (ROI). A 2025 survey revealed that 47% of consumers consider the resale value of clothing before making a purchase. This number jumps to 64% among shoppers aged 18 to 44.

Experts describe this phenomenon as owning a "piece of capital." Money spent on a handbag or watch is viewed as funds sitting in a closet, waiting to be liquidated for future purchases. However, industry leaders caution that investing in luxury items carries risks similar to the stock market. A recommended approach is to purchase items you genuinely enjoy, hoping to recoup a significant portion of the cost later rather than treating it as a guaranteed financial gain.

Industry leaders emphasize the evolving nature of luxury consumption. Pierre Dupreelle, a managing director at Boston Consulting Group, noted that the secondhand market is becoming a sustainable and integral part of how people engage with the category.

Similarly, Lara Osborn, SVP of merchandising and fulfillment at Fashionphile, highlighted the financial flexibility this trend offers. "You own a piece of capital that you can apply to something else; it's money in your closet, sitting and waiting to be spent," Osborn stated. She also offered a rule of thumb for successful resale shopping: consider it a victory when you can buy, use, and enjoy an item, and eventually sell it for a substantial portion of the original price.