RAPAPORT... The sale of previously owned items could boost luxury companies’ revenues by up to 20% in the next 10 years and help it reach a broader audience, according to a report by Bain & Company.
Resale will also enable the businesses to generate extra demand for new items, Bain said in its “A Vision of Sustainable Luxury” report, which it released Wednesday in partnership with sustainability specialist Positive Luxury. Retailers will allow consumers to purchase new items with vouchers they receive for selling their used luxury goods, Bain predicted.
For the report, Bain conducted a case study of a fictional company called LuxCo, operating in 2030, and the steps it took toward sustainability, including offering pre-owned items.
Between 2021 and 2030, LuxCo saw resale growth of 50%, according to Bain’s projections. By 2030, resale is responsible for increasing the profit margin on a single product by 40%, while raising the revenue per product by 65%, Bain added.
Image: A selection of pre-owned products for sale. (The RealReal)
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