Pre-owned luxury a real and deep-rooted trend, Kering says
Paris-based platform for luxury second-hand accessories Vestiaire Collective has completed a new round of financing, raising €178m.
Backers of Vestiaire Collective in this financing round include luxury group Kering and New-York-based investment firm Tiger Global Management.
Vestiaire Collective’s chief executive, Max Bittner, said on making the announcement that having the backing of Kering, Tiger Global and other investors would help the platform continue its “mission to build a more sustainable fashion industry”.
The platform launched in 2008 during the global financial crisis to allow consumers to sell and buy authenticated luxury handbags, shoes, clothes, jewellery and other accessories. Mr Bittner commented: “The model has clearly demonstrated its ability to continue to thrive during challenging conditions. The resale sector as a whole is experiencing rapid growth, especially amongst Millennial and Gen Z consumers, which will come to shape the retail landscape of the future.”
Kering now has a stake of around 5% in Vestiaire Collective. It said the pre-owned fashion sector has experienced rapid growth over the last three years with a further acceleration during the pandemic. This has been predominantly driven by younger consumers’ increased focus on sustainability and a growing trend for social shopping and online communities, it said.
According to figures Kering published at the time of the Vestiaire Collective announcement, the volume of second-hand pieces in people’s closets is predicted to grow from 21% in 2021 to 27% in 2023 with the value of the second-hand sector forecast to be worth more $60 billion by 2025.
Chief executive, François-Henri Pinault, said: “Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers. Rather than ignoring it, our wish is to seize this opportunity to enhance the value we offer our customers and influence the future of our industry towards more innovative and more sustainable practices.”
Image: Vestiaire Collective.
