What: Price hikes and economic pressures are accelerating the shift of luxury shoppers to resale platforms for affordable handbags.

Why it is important: The migration to resale platforms underscores the need for luxury brands to adapt, as consumer behavior and market dynamics evolve rapidly.

Tariffs and inflation are reshaping the luxury retail landscape, prompting consumers to seek more affordable alternatives in the secondhand market. As luxury brands like Hermès, Louis Vuitton, Chanel, and Dior continue to raise prices, shoppers are increasingly turning to resale platforms such as Vestiaire Collective and Fashionphile, where average selling prices remain stable despite rising costs in primary retail. This migration is not only driven by economic necessity but also by a desire for authenticity, access, and sustainability. The secondhand market’s resilience is evident in its steady demand and growth, even as the broader luxury sector faces a decline in spending and a shrinking customer base. Creative director changes and the rising appeal of vintage items are further fueling interest, with vintage listings and searches surging as aspirational buyers look for value and heritage. Department stores and resellers are responding by forming new partnerships to capture this demand, underscoring the strategic importance of the resale channel. As economic and cultural forces converge, the secondhand luxury market is emerging as both a refuge for price-sensitive consumers and a vital growth engine for the industry.

IADS Notes: In April 2025, industry reports confirmed that new tariffs and inflation are accelerating market polarization and forcing luxury brands to restructure, with a 2% sector decline and significant consumer loss. March and April 2025 saw the secondhand market reach $100 billion globally, driven by price-conscious shoppers and environmental concerns, while profitability remains a challenge for many platforms. Major brands have responded by expanding accessible product lines, but this has only increased consumer interest in pre-owned goods. The appeal of vintage and the impact of creative director changes are further shaping demand, with department stores and resellers forming partnerships to attract new audiences and adapt to evolving market dynamics.

Tariffs and price hikes drive shoppers to the second-hand luxury handbag market