Page 42 - IAADFS Summit 2023 Special Edition

INSIDER

How the growing appeal of circular fashion is driving

Pre-Owned Luxury in travel retail

Whether you call it second-hand, LXR operates in the Resale Luxury “Louis Vuitton, Chanel and Gucci are
vintage or “pre-loved,” the market for Market, with a focus on preowned luxury the most popular brands (in travel retail)
pre-owned goods is burgeoning, especially leather goods and accessories. Active and we also see high demand for Fendi and
when it comes to coveted luxury brands. in this segment since 2010, Swan says, Dior,” says Swan.
And the travel retail industry is taking “We believe we are well-positioned to
notice. continue to provide consumers of all ages, Demand is strong
“Travel Retail must get into luxury environmentally-responsible authenticated “Our business has been amazing. In
resale… it will be missing a major category branded luxury products through our addition to expanding our presence in the
if they don’t consider this,” encourages extensive omni-channels.” airports, we have launched several cruise
Laura Swan, Co-President and Chief “Entering the pre-owned market is ships with great results, she added.
Revenue Officer of the company LXR, no longer an option; the growth of luxury In December, Harding+ introduced a
which has launched pre-owned luxury in resale cannot be ignored,” she emphasizes. range of pre-loved handbags, accessories
the channel. As one of the conference speakers at and jewelry onboard the new P&O Cruises
the 2022 Summit of the Americas, Swan Arvia within a dedicated accessories store.
Untapped potential introduced the concept of second-hand Harding+ recently announced that it
“The resale economy continues to luxury resale, which was then very new in would be expanding the pre-loved luxury
outpace traditional retail (or first-hand the market. range to the Carnival Cruise Line and
retail), growing about 27% year over “LXR pioneered the first pre-owned Princess Cruise ships it handles, launching
year,” says Swan. “It offers a desirable luxury boutique with Aer Rianta in onboard a further 10 ships in 2023.
new revenue stream in a growing market the Loop Duty Free store at Canada’s Starboard Cruise Services has also
category.” Montréal-Trudeau International Airport embraced the concept, and features a
Swan quotes market analytics, which in September 2021. It was the first luxury vintage luxury collection in its Sense of
predict that the total resale market is going vintage concept to launch in an airport in Self shops onboard the Celebrity Edge
to be north of $50 Billion in the next three North America. This business continues to class ships.
years. be very strong and we are looking forward The range of pre-loved luxury onboard
“In 2021, resale saw 58% growth, to future opportunities together,” she said. P&O Arvia features almost 40 different
the highest in five years,” she explains, Focusing on the top 20 luxury styles from Gucci, Louis Vuitton, Chanel
followed by a 28% increase in 2022. brands including Louis Vuitton, Gucci, and Hermès, with pre-loved prices ranging
Luxury resale has increased its penetration Chanel and Hermes, LXR offers a highly from £250-£6,000, which is 30% and 70%
of the total resale market and is outpacing curated assortment of handbags and other less than the original as new price, reports
the primary luxury market, growing at complementary accessories. Swan says that Harding+.
65%, according to the Bain-Altagama the pre-loved pricing model offers up to
2022 Luxury Goods Worldwide Market 70% below MSRP, depending on condition
Study. and brand demand.

Selections from the Harding+ pre-loved shop aboard P&O Arvia.

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