Secondhand Luxury Market Booms as Authentication Sets New Industry Standard

Robust Growth in the Secondhand Luxury Market

The global market for secondhand luxury goods is expanding rapidly, outpacing the traditional firsthand market by a factor of three. According to a joint report by Boston Consulting Group and Vestiaire Collective released on October 9, the resale market is growing at an annual rate of 10%, with projections estimating it could reach $360 billion by 2030, up from approximately $210 billion today.

Authentication Challenges Amid Rising Counterfeits

As the secondhand luxury market expands, authentication has become the critical factor separating credible platforms from the rest. The sophistication of counterfeit manufacturing has escalated, making it increasingly difficult even for luxury brands themselves to identify fakes. In some cases, counterfeit items are so convincing they have been unknowingly repaired by the brands.

“As counterfeit manufacturing becomes increasingly sophisticated, even luxury brands themselves sometimes fail to detect fakes, in some cases, unknowingly repairing counterfeit items.”
Jaewha Choi, CEO of Bunjang

Instances of consumers paying thousands of dollars for counterfeit Hermès bags or Rolex watches with swapped parts have become common online. Some counterfeits, known as “superfakes,” reportedly use materials from the same suppliers as original brands, underscoring the challenge.

Resale Platforms Invest Heavily in Verification

To combat counterfeit risks, leading resale marketplaces are investing significant resources into authentication technologies and processes. Singapore-based Carousell, for instance, has opened its first physical store dedicated to luxury items, where sellers can have their products appraised and graded before resale. Tresor Tan, Director of Sales, Marketing and Client Relations at Carousell Luxury, explained that their appraisal process scrutinizes every detail—from material quality to stitching and stamping. The platform also provides a money-back guarantee on authenticity, reflecting the importance of trust in their business model.

“At the end of the day, it’s our reputation at stake as well. And because of that confidence, we also offer our buyers a money-back guarantee on authenticity.”
Tresor Tan, Carousell Luxury

Carousell has developed a proprietary database encompassing nearly 500 product styles, and items with higher values undergo multiple authentication checks. Any product with questionable authenticity is excluded from listing. Similarly, South Korea’s Bunjang employs a proprietary authentication system that merges traditional visual inspections with scientific tools and artificial intelligence trained on hundreds of thousands of data points. This system reportedly achieves a 99.9% accuracy rate in identifying genuine products and continuously adapts to evolving counterfeiting techniques.

Authentication Drives Sales and Consumer Confidence

Authentication has proven to be a key driver of growth for resale platforms. Bunjang reports that luxury items now constitute over 25% of its $1.1 billion annual gross merchandise value, with a 30% year-on-year increase in luxury transactions in the first half of 2025. Although Carousell has not disclosed exact figures, its luxury segment has experienced significant growth, which motivated the launch of its physical store to provide enhanced oversight for high-value transactions.

“When someone is buying and selling a $100,000 watch on the platform, it definitely catches our attention.”
Tresor Tan, Carousell Luxury

Carousell’s approach balances fair pricing with assurance, offering consumers confidence even if prices are slightly higher than competitors. This strategy underscores the increasing consumer emphasis on authenticity over cost savings.

Emerging Consumer Preferences in Secondhand Luxury

Affordability remains the primary motivator for purchasing secondhand luxury, with 80% of consumers citing it as their main reason. However, interest is also growing in rare or discontinued collections no longer available in retail stores. Samantha Virk, Chief Marketing Officer and U.S. CEO of Vestiaire Collective, highlights that these motivations are intensifying, making secondhand shopping an ingrained aspect of contemporary fashion engagement. Younger generations, including Millennials and Gen Z, are particularly drawn to the resale market. With limited disposable income, they prefer to buy, enjoy, and resell luxury items swiftly, reflecting a fundamental shift in luxury consumption patterns.

“This remarkable growth reflects a fundamental shift in how Millennials and Gen Z, the next wave of luxury consumers, perceive and engage with luxury goods.”
Jaewha Choi, CEO of Bunjang

FinOracleAI — Market View

The accelerating growth of the secondhand luxury market is reshaping consumer behavior and retail strategies. Authentication technology and rigorous verification processes have become indispensable to sustaining trust and scaling operations. Platforms that effectively integrate AI and scientific methods into authentication stand to capture significant market share.

Opportunities: Expansion of resale platforms leveraging AI-driven authentication; increased consumer willingness to pay premiums for verified goods; growth in younger consumer segments adopting circular luxury consumption.
Risks: Escalating sophistication of counterfeiters requiring continuous innovation; potential reputational damage from authentication failures; regulatory challenges around resale and consumer protection.

Impact: The emphasis on authentication is a positive catalyst for the secondhand luxury sector, enhancing consumer confidence and enabling sustained market expansion.

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