Share

Luxury Circular Economy

The Rise of Luxury Resale

______________

The Fresh Kid

1st August 2023

3 Minute Read

luxury circular economy
Luxury Brands can grow Differently
what is luxury circular economy

There are new ways and business models to help luxury companies grow.



The luxury circular economy is a business model that is being used by savvy luxury brands to grow revenue and profitability.

Luxury customers increasingly want to purchase products that are good for the planet and are made ethically.

This has led them to purchase products that have been preowned.

Luxury companies are creating new revenue streams by selling their returned, pre-owned products through luxury resale, websites like The Real Real.

arrow
Selfridges Luxury Department Store - Luxury Circular Economy Success Story
luxury circular economy examples

Luxury department store Selfridges' luxury circular economy business model (Reselfridges) which resells, rents & repairs luxury products generated £13 million in revenue in 2022.

This is only 2% of their total revenue (£653mil) however they have benefited in many other ways from this new business model.

Diversified Revenue Stream

Firstly they have a new revenue stream and have diversified away from the traditional luxury revenue streams which allows them to grow with more protection if one or more of the other streams suffers.

Enhanced Brand Image

Their strategy is very aligned with demand and changing customer spending behaviour which enhances their brand perception.

New Customers & Enhanced Brand Loyalty

Luxury Resale attracts higher spending customers because the prices ,especially with rare handbags and watches, are much higher than retail and are considered investments.

Luxury Resale and Rental can add £millions to your companies revenue and is a smart growth strategy

arrow
Luxury Resale Market Growing Fast