How Consumers Focus on Distinctiveness and Enduring Value Is Shifting Resale, According to The RealReal
The RealReal’s 2024 Resale report finds that trends today are emerging in a new way with shoppers valuing what they see on TikTok, television and street style over the runway when they shop. It’s a reaffirmation that culture plays an important role in fashion at a time when consumers value “what’s going to last” instead of “what’s next” during a time of economic stress.
“This unprecedented collision of fashion and culture is empowering consumers to shape trends themselves, driving demand for unique, high-value items that reflect their personal style,” said Rati Sahi Levesque, president and chief operating officer at The RealReal. “They’re looking to invest in quality more, especially during a time of economic insecurity. For the second year in a row, we’re seeing both average order values and average sale prices rise across all generations, with increases up to 14 percent. More than ever, shoppers are curating their wardrobes with a focus on distinctiveness and enduring value.”
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The resale retailer’s analysis looked across all generations and genders to find what consumers are shopping for today. The top searched brands of the year were Louis Vuitton, Chanel, Prada, Gucci, Loewe, Miu Miu, Celine, Bottega Veneta, Dior and The Row. In the retailer’s sales, this translates into bigger spending on brands considered to have higher value with Cartier, Tiffany & Co. and Van Cleef & Arpels leading in jewelry.
Gen Z’s most searched brand was Prada, though Chanel and Gucci handbags are the most searched items on the site popular especially among Baby Boomers and Gen Z shoppers.
According to the report, news about creative changes at brands was a driving force in demand this year. For example, demand for Dries van Noten was up 200 percent following the designer’s announcement of his retirement and Valentino ready-to-wear experienced a 20 percent increase in demand following Pierpaolo Piccolo’s announcement to step down. Similar findings were seen as Virginie Viard exited Chanel and when Seán McGirr stepped in at Alexander McQueen.
One trend that stood out this year for resale was “vintage business attire,” which the report found gave a lift to brands including Calvin Klein (306 percent increase), Donna Karan (216 percent increase), Gianfranco Ferré (270 percent increase), St. John (163 percent increase) and Thom Browne (122 percent increase). At the same time, however, streetwear brands including Supreme, Off-White and Nike Jordans saw a decline in demand.
Nuances were found across generations including where the highest spenders are regionally. Baby Boomers held a majority in New York, Los Angeles and San Francisco, while Gen X shoppers based in Palm Beach, Fla., are the highest spenders per order overall. Millennial shoppers in New York were found to be responsible for the highest gross sales compared to any other demographic or state. And compared to any other cohorts, The RealReal’s data found that Gen Z shoppers in Atlanta spend the most per order.
More than any other category, the report found that fine jewelry had the highest growth this year, which the authors of the report said is likely due to consumers looking to find a guaranteed ROI with staying power on high-value pieces during a time of economic uncertainty.
Still, when it comes to jewelry overall, the company’s report found an increased interest in maximalism. Searches for both emerald gemstones and onyx pieces increased 20 percent and resale value for turquoise pieces increased by 79 percent of MSRP. At the same time, searches for gold bangles increased by 353 percent and cuff bracelets saw a 32 percent increase in searches — Tiffany Bone Cuffs, however, were up 118 percent. Sales for Cartier collar necklaces are up 146 percent for the retailer and sales for Tiffany & Co. signet rings are up 70 percent.
When shopping for handbags, the authors of the report said that shoppers have noticed the hike in prices for top-tier luxury. As a result, consumers are still spending 20 percent more on bags today than they were five years ago with The RealReal, though trending toward styles from brands like Miu Miu and Loewe in addition to emerging brands. Consumers shopping in the $1,000 to $3,000 price range has grown by 13 percent year-over-year.
Notably, The RealReal’s authentication of handbags in 2023 intercepted more than 7,000 counterfeits which the company said have become “jarringly similar to the real thing.” Mirroring years past, top brands found to be counterfeited were Hermès, Chanel, Louis Vuitton and Gucci with an uptick in Celine and The Row found this year.
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