The Resurgence of Secondhand Luxury: Authentication as the New Gold Standard
The global market for secondhand luxury items is experiencing a boom, with an annual growth rate of 10%, outpacing the primary market by threefold, according to a Boston Consulting Group report. This surge has led to a critical shift in the industry: authentication has become the defining factor in establishing trust between credible platforms and consumers.
The resale market for fashion and luxury items is projected to reach a staggering $360 billion by 2030, up from its current value of $210 billion. As more shoppers opt for pre-owned designer brands, the issue of counterfeit goods has become increasingly prominent. Jaewha Choi, CEO of Bunjang, a South Korean online marketplace, highlights the sophistication of counterfeit manufacturing, noting that even luxury brands sometimes struggle to detect fakes, sometimes unknowingly repairing counterfeit items.
Online, horror stories abound of individuals paying thousands for fake Hermès bags or Rolex Oyster Perpetual watches with swapped parts. Some counterfeits are so convincing they are dubbed 'superfakes,' reportedly made with materials sourced from the same leather suppliers as the original brands.
The 'Caveat Emptor' Rule
However, as the resale market expands, authentication has become a growing concern. The secondhand industry has traditionally operated under the 'Caveat Emptor' rule, or 'buyer beware.' To combat the increasingly realistic 'superfakes,' resale platforms are investing heavily in verification processes.
Carousell, a Singapore-based online marketplace, opened its first brick-and-mortar store for luxury items in downtown Singapore, allowing sellers to have their items appraised before listing them for resale. The verification team inspects not only the material of a bag but also details like stitching and stamping, ensuring the highest level of authenticity.
Bunjang, another South Korean platform, has developed its own proprietary authentication system, combining traditional visual inspections with scientific equipment and artificial intelligence trained on hundreds of thousands of data points. This system boasts a 99.9% accuracy rate in identifying genuine goods, continuously learning and adapting to counterfeiting methods.
Trust Fuels Sales
Both Carousell and Bunjang report that their verification processes have significantly boosted business. Bunjang's luxury goods now account for over a quarter of its annual gross merchandise value, with transactions and total value for luxury items rising 30% year-over-year in the first half of 2025. While Carousell did not disclose specific figures, they noted a 'very strong interest' in the luxury segment, with 'great growth.'
The Rise of the Next Wave of Luxury Consumers
Affordability is the primary reason for buying secondhand luxury items, according to 80% of respondents in the BCG report. However, it's not just about saving money. Shoppers are increasingly drawn to rare or discontinued collections that are no longer available in stores. Samantha Virk, Chief Marketing Officer and U.S. CEO of Vestiaire Collective, notes that these motivations are strengthening, indicating that secondhand shopping is becoming an integral part of how people engage with fashion today.
Younger shoppers, with their limited spending power, prefer to buy, enjoy, and quickly resell items, according to Bunjang's Choi. This growth reflects a fundamental shift in how Millennials and Gen Z, the next wave of luxury consumers, perceive and engage with luxury goods.
