What: after building a partnership between Gucci and The RealReal, Kering invests in the French resale platform

Why is it important: luxury’s attitude to second-hand model is rapidly changing

A year ago, none of the French luxury group Kering’s brands had dared dip a toe into the fast-moving waters of online fashion resale.

Luxury sector is evolving fast towards second-hand business. Since 2018, Burberry and Stella McCartney have entered into partnerships with The RealReal. That same year, Richemont bought a watch resale website, Watchfinder. Neiman Marcus took a minority stake in Fashionphile in 2019, a shopping site for second-hand luxury handbags and accessories. Last year, Kering brands Gucci and Alexander McQueen have both announced partnerships with respectively The RealReal and Vestiaire Collective. Also last year, LVMH said that the group luxury’s biggest company is looking at resale opportunities.

Now, Kering has acquired a 5 per cent stake in Paris-based Vestiaire Collective, in the clearest sign yet that luxury’s attitude to the second-hand model could be thawing.

The group stepped up as a leading investor in the platform’s latest funding round. The EUR 178 million (USD 215 million) financing pushed Vestiaire Collective’s valuation above USD 1 billion for the first time. Existing shareholders including Condé Nast and French private equity firm Eurazeo reinvested alongside Kering.

The shift reflects broader market trends as luxury players seek to burnish their sustainability credentials and secure a seat at the table in the luxury resale sector. Second-hand fashion is already worth USD 40 billion and is expected to grow as fast as 15 to 20% per year through 2025. Resale also offers an entry point to build brand loyalty at more accessible prices, and with an eco-conscious message that resonates powerfully with the next generation of consumers.

Whether the partnerships will stick, or grow to a meaningful scale, remains to be seen. But brands are likely hoping they could win back some control over how they are presented on the sites, as well as exploring a new channel to monetise their own unsold inventories and returned products.

Luxury brands partnering with resale sites have also offered sellers store credit in return for their pre-loved handbags and high heels. That appeals to environmentally-conscious shoppers while also tempting them back to the store.

Why Kering Invested in Vestiaire Collective 

Gucci owner Kering invests in resale platform Vestiaire Collective