India's love for pre-owned luxury reveals a sustainable shift

19 November 2024, Mumbai

India's luxury market is growing with the allure of brand-new, sparkling luxury items remaining strong and along with it a new trend is emerging, where pre-owned luxury items are becoming trendy. Driven by a combination of sustainability concerns, the rise of Gen Z, and the convenience of e-commerce, this segment is expected to grow significantly in coming years.

A market ripe for taking

Currently valued at $618 million, the pre-owned luxury market in India is projected to reach 1.56 billion by 2032, at CAGR of 10 per cent. This increase is due to factors like acceptance of pre-owned luxury goods across diverse categories, from watches and handbags to jewelry, fashion, and even art and antique furniture. Tata CLiQ Luxury's foray into the pre-owned market exemplifies this trend. Launched earlier this year, the platform already boasts of an impressive catalogue of high-end brands like Rolex, Omega, Gucci, and Louis Vuitton. By focusing on stringent quality checks and transparent product information, Tata CLiQ Luxury is successfully building consumer trust in the pre-owned segment.

Table: Pre-owned luxury market growth

(Source: Industry research and analysis, estimates based on market trends)

There are several factors contributing to the pre-owned luxury market in India. Sustainability is a major one. Consumers are increasingly aware of the environmental impact of their consumption habits. Pre-owned luxury offers a sustainable alternative, promoting circular fashion and reducing waste. Then there is the whole aspect of Gen Z influence. This digitally native generation, known for its strong values around sustainability and ethical consumption, is a key driver of the pre-owned luxury trend.

E-commerce boom is another catalyst with platforms like Tata CLiQ Luxury, Ajio Luxe etc offering convenient and trustworthy channel for buying and selling pre-owned luxury goods, ensuring authenticity and quality. And pre-owned luxury often provides access to rare, discontinued, or vintage pieces, offering a unique appeal and a sense of exclusivity.

Global overview

Globally, the pre-owned luxury market has taken off in a big way. As per Blueweave Consulting the worldwide market is expected to reach $50.22 billion by 2030, growing at a CAGR of 9.32 per cent. This growth is due to similar factors as in India, with sustainability and value consciousness playing significant roles.

However, the promising outlook is not all positive as the pre-owned luxury market in India faces many challenges. First is the concern around authenticity and quality. Platforms need to invest in robust authentication and quality control measures to alleviate these concerns. Also its important to change perceptions as the traditional association of luxury with newness needs to be addressed. Educating consumers about the benefits of pre-owned luxury is crucial.

However, these challenges also present opportunities. For example, blockchain technology can be leveraged to ensure product authenticity and traceability, boosting consumer confidence. Moreover, collaborations between luxury brands and pre-owned platforms can further legitimize the market and drive growth.

The bottomline is pre-owned luxury market in India is expected to grow as sustainability concerns continue to increase, Gen Z's influence expands, and e-commerce platforms innovate, this segment is set to become a major force in the Indian luxury landscape. By addressing the challenges and capitalizing on the opportunities, the pre-owned luxury market can create a more sustainable and inclusive luxury ecosystem in India.

Latest Fashion news