Pre-owned luxury goods are surprise pandemic winners

Luxity, South Africa’s omnichannel luxury brand buyer and reseller, reported 86 percent growth for the 2021/22 financial year. This brings total growth over the pandemic period to 190 percent, far outpacing the country’s retail sector growth of 6.4 percent in 2021.

The global pre-owned luxury market grew by 65% between 2017 and 2021, compared to 12% for first-hand items

“We predict that by 2027, one in 10 luxury items bought will be pre-owned,” says Luxity Co-Founder Michael Zahariev about the South African consumer’s growing appetite for pre-owned items.

“What we’re seeing locally, however, is that South African Gen Zs and Millennials comparatively lack the purchasing power to afford pre-owned luxury. It is actually the country’s aspiring middle class that is driving the growth of the sector. We believe that this is due to them now having access to these items, whereas before they were out of reach from a cost perspective.”

Pre-owned is also scoring points from a sustainability perspective. A new item of clothing produces 9.5kg of carbon emissions, consumes 39kWh of electricity and wastes 297 litres of water, while , a pre-owned item generates less than 2kg of carbon emissions, expends under 5 kWh of electricity and uses 4.5 litres of water.

“This is also beneficial for South Africans seeing that we, as a country, need to reduce our greenhouse gas emissions to net-zero by 2050.” says a confident Zahariev who is buoyed by this upward trajectory.

“While this is a way of life abroad, it was only a matter of time until South Africa joined in on the global trend,” he explains. “With easier access to goods, flexible payment terms and the ability to procure rare items that are not available brand new in the country, it’s no wonder there has been a boom in the sector over the past five years.”

Luxity is confident in its hybrid approach that offers shoppers real-time stock information as well as an in-store retail experience that the luxury consumer craves.

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