Luxury brands currently hold an estimated $200 billion in unsold inventory worldwide, a 15% increase from the previous year, according to a Bain & Company Report. This accumulation occurs even as consumers increasingly choose pre-owned markets, posing a significant challenge to traditional luxury retail models.

The luxury sector traditionally relies on perceived exclusivity and high demand to justify premium pricing. However, a substantial build-up of goods is occurring as consumer spending shifts towards more accessible and sustainable options. Major luxury groups like LVMH and Kering reported slower growth in Q3 2025 compared to previous quarters, citing 'softening demand' in key markets, according to Company Earnings Calls. The average discount rate for luxury items on third-party e-commerce sites increased by 5 percentage points in the last six months, according to a Retail Analytics Firm, a clear sign of market recalibration. Based on these trends, luxury brands must fundamentally adapt their business models, potentially embracing circularity and adjusting pricing strategies, or risk losing significant market share to more agile competitors and the booming resale market.

How Is the Luxury Resale Market Growing?

  • The global luxury resale market is projected to grow by 10-15% annually, reaching $70 billion by 2027 (projected), according to a ThredUp Resale Report.
  • 60% of luxury consumers are now more likely to consider pre-owned items than five years ago (as of 2023), a Deloitte Luxury Study found.
  • Online searches for 'luxury consignment' have surged by 30% in the past year, according to SEMrush Data.

This increasing acceptance and accessibility of pre-owned luxury directly compete with new full-price sales. This signals a direct consumer rejection of new luxury's perceived lack of value and sustainability.

How Are Consumer Preferences Changing for Luxury Goods?

Sales of new entry-level luxury goods, those priced under $1,000, have stagnated. In contrast, mid-priced premium brands such as A.P.C. and Ganni saw an 8% growth Q3 2023, according to Fashion Business Insights. Mid-priced premium brands such as A.P.C. and Ganni saw an 8% growth Q3 2023, signaling a departure from traditional luxury entry points, favoring alternatives with higher perceived value.