The resell market for luxury goods is growing stronger

Today, EACHSHOES has read a market research article by Boston Consulting Group about secondary market (Secondary Market / Resale Market) that has outperformed and grew stronger than the primary market (Primary Market). ).

First, briefly explain the two terms as follows:

1. Primary market (Primary Market): The primary market is where end-consumers (end-consumers) use the money to directly buy products, goods, services, … that brands create products, goods, services, … according to the selling price. odd created. End users will make economic transactions and sellers will receive money at the stated retail price. The retail price will be included in the sales of the brand selling the product.

For example: OFF-WHITE x Nike sells Air Jordan 1 shoes with a retail price (Retail Price): 10,000,000 VND. You A will be the end consumer to purchase the item at retail price and Nike Brand will record the Revenue of 10,000,000 VND in its books. This is the transaction on the primary market. If friend A sells these shoes to friend B for 50,000,000 VND, then the difference of 40,000,000 VND will be in your pocket A & 40,000,000 VND will be the cash flow generated – it will be on the secondary market.

2. Secondary Market (Secondary Market / Resale Market): Where you buy a product with a retail price and resell it at a price higher than the cost you paid in the examples mentioned above. This difference is credited to the seller’s account (other than the brand selling the product at retail price), the cash flow difference will be on the secondary market, not recognized from sales of the product. trademark.

Returning to the Boston Consulting Group research, Market Surveys Group surveyed 12,000 customers in more than 10 markets and gave the following extremely interesting analysis for the high-end market. (luxury) as follows:

– The secondary market will have a rapid growth from 25 billion USD in 2018 to 36 billion USD in 2021. Growth of more than 24%. This is an extremely impressive figure compared to the 3% growth in the primary market from $ 330 billion to $ 361 billion.

– More and more young people of Millennials (80s – 90s) and Gen Z (born 2000s and later) enter the market of reselling purchased goods. The younger the two generations above have a large proportion of the transactions, on the contrary, the older Baby Boomers (60s – 70s) & Gen X (40s – 50s) tend to be the buyers. goods, not resale transactions.

The detailed document can be read here!

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