Gucci just partnered with The RealReal, joining a growing number of legacy luxury brands on the platform. It shows how the appetite for high-end clothes will never die, just evolve.
- On October 5, Gucci and luxury resale platform The RealReal announced a partnership that will see the luxury brand's goods become available second-hand on the platform.
- Gucci becomes the latest luxury brand, after Burberry and Stella McCartney, to partner with The RealReal, proving that the relationship between luxury’s second-hand and primary markets continues to grow.
- The partnership shows how luxury is retaining its grip on younger, tech-savvy consumers by embracing a digital identity.
It's official. Gucci has partnered with The RealReal, becoming the latest luxury brand, after Burberry and Stella McCartney, to work with the luxury resale platform, as the online secondhand market continues to grow.
The sector is expected to be worth $51 billion globally by the year 2023, Business Insider's Madeline Stone previously reported, citing research from ThredUp and GlobalData Retail.
Gucci's foray into the secondhand market was only a matter of time, as it has continuously ranked as one of the most popular brands among young consumers. In fact, as previously reported by Business Insider, 60% of Gucci's revenue in 2019 was generated by millennials, and only Gucci and Louis Vuitton have remained among the world's most valuable brands since the year 2000, a feat that other luxury giants such Fendi, Prada, and even Cartier couldn't match.
Data given to Business Insider by The RealReal shows that Gucci was already one of the top brands on the platform before the partnership and that it remains in very high demand, with a 19% growth rate year-over-year and a resale value that is 2.3x stronger than the platform's average. For the third year in a row, Gucci has been the most in-demand men's brand, with 18- to 34-year-olds driving most of the search demand.
The demand for Gucci scarves is up by 31%, per RealReal data, while women's tote bags are up by 26% and the demand for Gucci jewelry is up by 47%, making it number one in category growth.
Rather than individuals offering their own Gucci products for sale, the partnership with The RealReal will see the luxury brand directly facilitate resale of items from its Women's, Men's Fine Jewelry & Watches, Home, and Kids divisions.
The RealReal also said that each time someone buys a Gucci item, the platform will sponsor the planting of a tree through One Tree Planted, a charity that seeks to help restore forests around the world.
One Tree Planted might be able to expect to start planting hundreds of new trees — demand for the Gucci's men's category has already increased on the site 24% year-over-year, The Real Real told Business Insider, with Gucci loafers increasing by the same percentage.
"Gucci is raising the bar not only for the fashion industry but for all companies by continuously innovating to make its business more sustainable," said Julie Wainwright, founder, and CEO of The RealReal, in a press release. "Together we're shining a global spotlight on resale that we hope will encourage all consumers to support the circular economy and join us in reducing fashion's carbon footprint."
This partnership will likely benefit younger consumers, many of whom turn to the second-hand market to buy luxury products at more attainable or "entry-level" prices, as reported by Rachel Deeley at Business of Fashion.
As more young consumers continue to take interest in resale, Deeley noted, the second-hand market has turned into a gateway for buyers who later end up in the primary market. At first, luxury brands considered the second-hand market detrimental, but that attitude is beginning to change, Deeley reported.
Guia Ricci, a principal at Boston Consulting Group, told Deeley that many brands are beginning to realize the gateway potential of the secondhand market, and have started to explore ways to coexist with it.