French retailer Galeries Lafayette is welcoming ecommerce consignment seller InstantLuxe into two of its department stores for a temporary shop-in-shop space.
InstantLuxe.com, which specializes in the trading of pre-owned luxury goods online, was purchased by Galeries Lafayette in June. Consignment buying is gaining ground in the luxury space as consumer behavior is no longer restrained by seasons, and purchasing an item secondhand is no longer viewed as taboo (see story).
The shop-in-shop for the holidays comes after the success the concept saw in 2015 and summer 2016 at Marais BHV and Galeries Lafayette Biarritz.
InstantLuxe’s space in Paris and Nice will offer Galeries Lafayette’s consumers a selection of secondhand luxury products with pricing beginning at 150 euros, or $163 at current exchange rates.
All items will be subject to authentication to ensure Galeries Lafayette only offers its consumers goods of reliable and quality standards. InstantLuxe will display luxury leather goods, watches, jewelry and accessories.
Image courtesy of InstantLuxe
When a consumer visits the InstantLuxe pop-up she can also exchange a previously purchased luxury good such as a handbag. The item intended for trade will undergo InstantLuxe’s authentication process before becoming available for purchase on the Web site.
For Galeries Lafayette, the ability to trade in a pre-owned good within its department stores may prove beneficial. Once a consumer trades in an item she will receive a credit for the amount, which may then be reinvested into Galeries Lafayette’s offerings if she wishes.
“The luxury secondhand market is becoming more liquid, which is beneficial for both brands, but also for customers who can monetize their products more easily and [plan] purchases of new luxury items,” said Yann Le Floc’h, founder of InstantLuxe, in a statement.
“We look forward to this partnership with the BHV Marais and Galeries Lafayette Nice Massena, who perfectly illustrate our willingness to participate in the emergence of a new circular economy,” he said.
Happenings in the fashion industry have a a direct impact on the luxury consignment marketplace.
Consignment marketplace The RealReal, for example, saw a 60 percent growth in revenue for Gucci products after Alessandro Michele joined the Italian brand as creative director.
While brands such as Chanel, Hermès and Cartier remained as best-sellers for 2015, The RealReal noted in its end of year findings, "State of Luxury Resale 2015," that industry events affected the resale market. For example, Alexander Wang’s departure from Balenciaga raised the value of the designer’s namesake line by 15 percent on The RealReal
For more on this topic go to : Luxury Daily Article by Luxury Market Expert, Lorre White April 7, 2015