Environmental awareness, conscious consumption and rising prices have changed consumption habits. Consumers now use second-hand products and do not hide it. The consumption of second-hand luxury products, which is increasing all over the world, is spreading rapidly in Turkey as well. E-commerce platforms operating in this field have also started to grow and reach wider audiences with the investments they have received.
Rising prices, uncertainties due to Covid-19 , and environmental awareness are changing consumers’ perception of Luxury brands all over the world day by day. In China, Which Is One Of The Biggest Markets When It Comes To Luxury Consumption, Second-Hand luxury sales are spreading rapidly , especially recently . While the demand for second-hand luxury products in Turkey has increased rapidly in recent years; This increase is expected to continue each year. Although second-hand products have been in our lives for many years, we see that consumer preferences have changed recently when it comes to luxury products. Not just for economic reasons; For reasons such as environmental awareness and conscious consumption, especially the Z generation has changed the perspective of luxury products.
GENERATION Z EFFECT
According to Sinem Gürkaynak, Founder of Original Seconds, a second-hand luxury fashion platform, buying second-hand items is now seen as much ‘cooler’. Saying, “We have been doing this business for 18 years, second-hand has become completely different with the spending habits of the Z generation for the last 3 years,” Gürkaynak said, “People did not say that they bought second-hand products before. It is now shameful to approach second-hand luxury products at a distance.” Stating that they have achieved a 350 percent increase in turnover with the increasing demand, Gürkaynak said that they expect a double growth at the end of the year. According to Gürkaynak, investments in websites selling second-hand luxury products have also been on the rise, and sites that no one approached to invest five years ago are now receiving millions of Dollars In investment.
DEMAND WILL CONTINUE
Izz Stamati, Chairman of the Registered Trademarks Association (TMD), said that she believes second-hand sales will increase. Adding that the consumers of luxury brands may not be willing to sell the existing product without buying a new product, Stamati continued his words as follows: “I do not think that the demand for luxury products will decrease in the coming period. Even though there is a problem in the Russian market due to the war, there is no decrease in demand in Europe. Markets lost after the pandemic will also be recovered. Second hand was always on the agenda. It gained momentum again with e-commerce.”
NEW FLOW IN CHINA
According to a report by BAIN&CO, in 2021, luxury product sales in China increased 36 percent to 471 billion yuan ($74 billion). But young consumers in China are accelerating change, with less resistance to the idea of buying used luxury goods. In China, which has become almost obsessed with luxury consumption, a very interesting method has developed with the last quarantine. When quarantined residents in Shanghai come to the door to collect test kits from healthcare workers, they greet them with paper bags from luxury brands such as Prada, Louis Vuitton, and Hermes hanging over their doors. Health workers also collect test kits from these bags.
THE VALUE OF BRANDS DECREASED
While the total value of the world’s 50 most valuable luxury and premium brands is $227.1 billion in 2020; It fell to $219.5 billion in 2021. The clothing industry, which makes up 62 percent of the total brand value with 30 brands, was one of the industries that suffered the most due to the pandemic.