Did you know that the luxury consignment market is worth $28 billion? The used luxury market is growing at 12% every year and shows no signs of slowing down.
The key driver for this growth is a shift in consumer perception and shopping habits. Customers want to try new brands and on the other hand they sell products that are no longer useful to them.
The fashion industry's shift toward a more sustainable approach, the economic difficulties of the pandemic, and the newfound public acceptance of pre-owned items seem to be conspiring to create a new threat to mainstream retail.
Luxury brands, on the other hand, have finally realised that there is a commercial opportunity in adopting these trends. Instead of resisting and controlling resale, they are now encouraging it.
By recycling clothing, resale stores are contributing to environmental sustainability. Many resale stores are only available online, while others have physical locations near them. Some organisations accept donations on-site only, while others offer pick-up services.
Resale store owners and staff put together appealing displays that change regularly depending on what items are available and how in demand certain brands or items are.
With the right tactics, you can easily build and grow your luxury resale business.
Here are some best practices for growing your business
Building trust with customers requires transparency. According to a consumer analysis by Salsify, nearly 90% of people are willing to spend more on something if it comes from a trusted brand.
Customers will shop with confidence because they know they are getting exactly what they paid for in your online store, thanks to honesty in everything from your company values and goals to product details and overall service.
You can achieve this by legitimately checking your goods and proving to buyers that your stock is 100% genuine.
Partner with LegitGrails and gain certificates of authenticity that you can show to your customers to prove that the product you offer is genuine.
Not only does this build trust, but it also strengthens your brand image and allows you to use your resources more efficiently, since you will not have losses, disputes or returns due to counterfeit items.
LegitGrails offers special pricing for businesses on authentication packages to help you save money. To learn more about collaboration opportunities, visit the Partner With Us page.
Customers appreciate the competent authentication, which helps to increase sales in all authorised categories.
eBay, one of the largest online marketplaces in terms of scale and product volume, once experienced a problem with processing transactions on the platform due to concerns about the authenticity of products.
To address this issue, eBay partnered with Swiss watchmaker Stoll & Co and international sneaker trade show Sneaker Con to create a network of expert authenticators who could authenticate goods before they were handed over to the customer.
This adds a few days to the buying process, but it also increases trustworthiness. Sneakers and luxury watches have seen double-digit growth on eBay since the introduction of the authenticity guarantee.
Keep Your Stock Authentic
Use Social Media
No one can become your customer if they do not know you exist. Social media increases your exposure to potential customers because you can reach a large audience with little time and effort.
Setting up a business page on multiple social media sites is a great approach to get your business and brand known. You can use social media marketing to promote your products, share your vision, get feedback, provide guidance, and build a loyal following.
The ability to speak directly to consumers and followers is an extraordinary benefit of social media for small businesses. Instead of expecting immediate sales, you can build relationships over time.
Build your brand's authority and make a good first impression on social media by showing that your business is knowledgeable, reliable and responsive.
Customers are not interested in companies that post boring corporate-style social media updates. Instead, let your company's personality shine through in everything you post on social media.
What is your brand's tone of voice? While brands need to be polite and sympathetic to their customers, it's even more important to find a voice and make a statement.
The sheer amount of social media marketing alternatives available to small businesses can be overwhelming, but you do not have to do it all. It's more important to develop quality content for a few key channels than to have a presence on every network.
Use High-Quality Images
Include lots of high-quality photos in your listing to protect yourself from returns and disappointed buyers. Generally, the more images you have, the better. It not only informs customers about the quality of the product but also improves the visibility of your item in search results.
Great photos improve the aesthetics of your products while increasing their visibility.
First impressions are, for the most part, unchanging. That's why it's so difficult for business owners to represent their brand. Because whatever they choose, it has a huge impact on how others see them.
Use seven to ten photos in your entries. You'll gain more recognition and trust from potential buyers when they view your website from multiple devices.
A word of caution: do not steal an image of the item you are selling from the Internet. Post high quality images of the real item you are selling; otherwise, customers will complain about small differences.
You can include a certificate of authenticity with each product to prove its legitimacy and build trust between you and your customers.
LegitGrails' Certificates of Authenticity provide all the features that may be required to verify the item: Original model name, result, unique code that allows the buyer to verify the certificate on the LegitGrails website, and unique photos for each item.
What is the advantage of this? Customers do not have to do additional research on other websites to make sure the item is genuine, resulting in higher sales, and you will not get scammed by counterfeiters because you have minimised the risk of fakes in your inventory.
Overall, the authority of your brand will be quite strong, online reviews will be incredibly positive, and your business will be closer to the success you are aiming for.
The Bottom Line
Circular fashion is about being smarter, more aware, and more mindful of how we buy and consume, not just about fashion.
Every day we see the effects of climate change, and as most of the facts on the subject clearly show, it's not looking good. As consumers, we need to make an effort.
If we want to take it a step further, turning this idea into a business is a great idea: The statistics speak for themselves. We can only expect businesses like this to grow, as resale has been driven primarily by younger consumers' interest in sustainability.
As Generation Z's purchasing power grows, more resale brands are likely to pop up online.
Outsource authentication services, use high-quality images, include authentication certificates, build trust, choose the right tone, and use the right social media strategies - we believe these methods will help your business grow and be heard in the online world.
Grow Your Business with LegitGrails