In times of slowdown, there is luxury even in a used Prada
Portals selling second-hand luxury labels across categories like apparel, accessories and jewellery said they are also offering more flexible payment plans such as EMIs besides ramping up marketing spends for Diwali.
The portals selling luxury brands across categories like apparel, accessories and jewellery said they are also offering more flexible payment plans such as EMIs and deferred payment plans for high-value goods on customer demand besides ramping up marketing spends for Diwali.
Vijay KG, founder, Luxepolis.com, a luxury marketplace for buying and selling pre-owned certified used luxury products ranging from brands like Louis Vuitton, Gucci, Hermes and Chanel said business picked up significantly from July onwards and the company is seeing a growth in pre-owned purchases compared to new product categories.
"There are definitely signs of a slowdown as clients are asking for EMIs, cardless EMIs and deferred payment plans for high-value goods. All the categories are moving well. Particularly leather goods, fine watches and jewellery. We are also observing a rise in the sell listings this year. The growth is definitely attributed to the slowdown as we see more and more luxury consumers are becoming value conscious," he said.
Pratik Dalmia, chairman of ASSOCHAM’s National Council on Luxury and Lifestyle, said the opportunity to buy pre-owned goods over verified platforms is making luxury accessible to a wider audience. “I believe lower denomination products and flexible payment options will only help lower the threshold,” he said.
Anvita Mehra, founder of Confidential Couture said a slowdown in the economy has not affected business as the idea of the company's business model is to make luxury accessible to a broader spectrum of people by allowing them to resell luxury products and buy them at discounted prices.
"We have seen a growing traction on low-ticket items such as accessories including belts, wallets, and apparel to name a few, and also a growing demand for lesser known brands such as Valentino, Chloe, Balenciaga across different product categories," said Mehra.
"We do find our customers negotiating a great deal now compared to the past from both the buying and selling side. In my opinion, consumers have become even more price sensitive and thus more value driven," she said.
Keeping the slowdown in mind, Confidential Couture incorporated a few sales in the first and second quarter of this year besides offering flexible payment terms. "We do see a promising start with our Diwali sale in full swing. We have also enhanced our marketing budgets during this time, especially on social channels to engage even more with our customers."
LabelCentric, which offers both brand new and pre-owned luxury handbags and accessories, is seeing a rise in demand from the festive season last year.
"Someone who wants a Louis Vuitton will still buy a Louis Vuitton and not a Michael Kors. They may buy less often but won’t trade down in terms of brand. Brands like Louis Vuitton, Gucci, Dior and Chanel have always been favourites. We see the same brands trending even now," said founder and CEO Chitra Goenka.