Pre-owned Luxury Goods Transactions Shift to Outright Sales Model

The market for pre-owned luxury fashion is increasingly favoring outright sales over consignment, as owners seek quicker access to funds in a fluctuating economy.

This shift is evident in the growing interest from owners of branded bags, watches, and jewelry to sell their collections directly. Unlike consignment, where sellers must wait for items to be sold, outright sales provide immediate funds after an appraisal. Taku Matsumoto, Product Specialist at ALLU, noted that the need for liquidity is a key factor driving this change in transaction patterns.

"Economic fluctuations are driving the emergence of direct outright sale services as an alternative to consignment for fund disbursement," Matsumoto said. He explained that consignment processes can often take months, prompting some asset owners to opt for direct sales when short-term cash is needed.

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Economic fluctuations are driving the emergence of direct outright sale services as an alternative to consignment for fund disbursement

ALLU, part of Valuence Holdings Inc., utilizes an outright sale model with certified appraisers from Japan. Valuations are based on global market prices, ensuring transactions reflect current market conditions. The company claims the entire process, from authenticity checks to fund disbursement, can be completed in approximately 30 to 60 minutes. They accept luxury items even without original boxes or proof of purchase, and even those showing signs of wear.

This growing resale market not only provides liquidity for owners but also extends the product lifecycle, reducing the demand for new manufacturing. "A longer fashion product usage cycle suppresses the volume of waste from the global apparel industry. This also provides insight to the public that caring for and transferring fashion collections directly contributes to the implementation of a circular economy," Taku added.

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A longer fashion product usage cycle suppresses the volume of waste from the global apparel industry. This also provides insight to the public that caring for and transferring fashion collections directly contributes to the implementation of a circular economy