If luxury is dear, my dear, check out the reseller market where it becomes dearer. A Rolex Panda Daytona, which retails for Rs 13.2 lakh, sells for more than double—Rs 27 lakh—in the secondary market. The Patek Philippe Nautilus, which sells for Rs 35 lakh, commands Rs 2-2.7 crore in resale.
Luxury flipping, where coveted goods are bought and resold at significant markups, is on a high in India. It is transforming fashion accessories into investment assets. What was once a quiet affair among the wealthy has evolved into a sophisticated ecosystem of collectors, investors and enthusiasts who study luxury market trends with the same intensity as stock traders analyse financial markets. This phenomenon is driven by hype and the race to own limitededition and inaccessible luxury goods.
A two-month-old Hermès Birkin 25 aka Baby Birkin, complete with original tags, recently sold for Rs 15 lakh, securing a 40% premium over its retail price, on Confidential Couture, a marketplace for pre-owned luxury handbags. In some cases, depending on the bag’s condition and vintage status, the resale value can double.
Watch brands like Rolex, Patek Philippe, and Audemars Piguet have mastered the art of controlled scarcity. Since the waiting period for premium watches can stretch into years, flippers or resellers are taking advantage of eager buyers. Audemars Piguet’s Royal Oak Offshore Chronograph, retailing at Rs 30 lakh, can easily fetch Rs 70 lakh or more in the secondary market, according to data from Luxepolis.com, a leading luxury resale marketplace.
Meanwhile, the discontinuation of the Patek Philippe Nautilus in 2021 has only amplified the demand for it.
“About 70% buyers of luxury watches and handbags consider resale value and better capital appreciation as deciding factors while making a purchase,” says Vijay KG, founder of Luxepolis. com, which has been offering 70-90% buyback assurance on luxury watches. Vijay’s estimate is close to what a recent Deloitte survey has pointed out .
According to it nearly 60% of luxury watch buyers in India consider resale value while making purchases.
HANDBAG HIGHWAY
“The king of making money on retail is Hermès. It gets sold within days or even minutes,” says Anvita Mehra, co founder of Confidential Couture.
The path to purchasing a coveted Hermès Birkin or Kelly isn’t just paved with money.
“To qualify for a Birkin or Kelly, you need to have spent considerable money, built a profile and established a relationship with Hermès,” says Mehra. The average price of a Birkin sold on the Luxepolis site increased by 39% between 2020 and 2023, says Vijay.
According to Mehra, sellers often part with their purchases for various reasons: sometimes they end up being offered bags that don’t match their preferred colour, leather type, or size specifications, or they receive them as gifts which they don’t envision using. What drives these returns in the resale market is scarcity—these luxury items are not readily available in the primary market.
Mehra emphasises one crucial condition: “To secure the best returns, the items must be new.” The returns can be substantial. Mehra cites a luxury buyer who sold her brand-new Her mès Picotin, a coveted bucket-style handbag, for Rs 3.1 lakh—a 25% markup. According to Luxepolis data, Birkin appreciates by 14% annually, outperforming traditional investments like bank deposits and in certain years even gold.
The trend extends beyond Hermès to other luxury brands. Goyard’s St Louis tote, retailing at over `1 lakh, commands significant premiums in the secondary market. Chanel’s strategic price increases have transformed their bags into investment pieces, with the medium classic flap bag now retailing for around Rs 8 lakh and reselling for Rs 10-12 lakh on Luxepolis. com.
The platform reports an over 50% increase in Chanel resale prices from 2020 to 2023.
“Luxury buyers are factoring in resale value when making purchases. Even I do that with about 90% of my purchases,” says Punit Anand, founder of reselling marketplace The Luxury Pop. This strategic approach to luxury shopping has created a new breed of collector-investors. Anand says abo
ut 50% of her customers are actively flipping now. Says Chitra Goenka of Labelcentric, an online marketplace of pre-owned luxury accessories: “These collectors monitor the market and identify pieces that are likely to surge in value. They scout websites for good deals and make strategic purchases.”
The 2024 Resale Report by US-based and Nasdaq listed RealReal, a prominent secondhand online luxury marketplace, says certain bags from The Row, Bottega Veneta and Loewe are selling at a premium of over 40% . Rati Sahi Levesque, president and COO of RealReal, said in the report:
“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. They are looking to invest in quality more, especially during a time of economic insecurity. It’s no longer about what’s new being what’s next—it’s about what’s going to last.
More than ever, shoppers are curating their wardrobes with a focus on distinctiveness and enduring value.” What began as a market driven by passion has turned into an investment space, where market knowledge and timing are as crucial as the products themselves.
THE FLIPPING CULTURE
The rise of flippers in the luxury market has fundamentally altered how consumers view high-end goods. Luxury items are no longer just about status or craftsmanship but their potential resale value.
The practice of flipping has also turned scarce luxury goods into available commodities, with platforms like Luxepolis, Chrono24 and RealReal acting as unofficial stock markets for sneakers, watches and handbags. It is also potentially eroding the very exclusivity that once defined these brands, says Vijay. One thing is certain: the race for luxury has never been this competitive.
( Originally published on Nov 09, 2024 )
Luxury flipping, where coveted goods are bought and resold at significant markups, is on a high in India. It is transforming fashion accessories into investment assets. What was once a quiet affair among the wealthy has evolved into a sophisticated ecosystem of collectors, investors and enthusiasts who study luxury market trends with the same intensity as stock traders analyse financial markets. This phenomenon is driven by hype and the race to own limitededition and inaccessible luxury goods.
A two-month-old Hermès Birkin 25 aka Baby Birkin, complete with original tags, recently sold for Rs 15 lakh, securing a 40% premium over its retail price, on Confidential Couture, a marketplace for pre-owned luxury handbags. In some cases, depending on the bag’s condition and vintage status, the resale value can double.
Watch brands like Rolex, Patek Philippe, and Audemars Piguet have mastered the art of controlled scarcity. Since the waiting period for premium watches can stretch into years, flippers or resellers are taking advantage of eager buyers. Audemars Piguet’s Royal Oak Offshore Chronograph, retailing at Rs 30 lakh, can easily fetch Rs 70 lakh or more in the secondary market, according to data from Luxepolis.com, a leading luxury resale marketplace.
Meanwhile, the discontinuation of the Patek Philippe Nautilus in 2021 has only amplified the demand for it.
“About 70% buyers of luxury watches and handbags consider resale value and better capital appreciation as deciding factors while making a purchase,” says Vijay KG, founder of Luxepolis. com, which has been offering 70-90% buyback assurance on luxury watches. Vijay’s estimate is close to what a recent Deloitte survey has pointed out .
According to it nearly 60% of luxury watch buyers in India consider resale value while making purchases.
HANDBAG HIGHWAY
“The king of making money on retail is Hermès. It gets sold within days or even minutes,” says Anvita Mehra, co founder of Confidential Couture.
The path to purchasing a coveted Hermès Birkin or Kelly isn’t just paved with money.
“To qualify for a Birkin or Kelly, you need to have spent considerable money, built a profile and established a relationship with Hermès,” says Mehra. The average price of a Birkin sold on the Luxepolis site increased by 39% between 2020 and 2023, says Vijay.
According to Mehra, sellers often part with their purchases for various reasons: sometimes they end up being offered bags that don’t match their preferred colour, leather type, or size specifications, or they receive them as gifts which they don’t envision using. What drives these returns in the resale market is scarcity—these luxury items are not readily available in the primary market.
Mehra emphasises one crucial condition: “To secure the best returns, the items must be new.” The returns can be substantial. Mehra cites a luxury buyer who sold her brand-new Her mès Picotin, a coveted bucket-style handbag, for Rs 3.1 lakh—a 25% markup. According to Luxepolis data, Birkin appreciates by 14% annually, outperforming traditional investments like bank deposits and in certain years even gold.
The trend extends beyond Hermès to other luxury brands. Goyard’s St Louis tote, retailing at over `1 lakh, commands significant premiums in the secondary market. Chanel’s strategic price increases have transformed their bags into investment pieces, with the medium classic flap bag now retailing for around Rs 8 lakh and reselling for Rs 10-12 lakh on Luxepolis. com.
The platform reports an over 50% increase in Chanel resale prices from 2020 to 2023.
“Luxury buyers are factoring in resale value when making purchases. Even I do that with about 90% of my purchases,” says Punit Anand, founder of reselling marketplace The Luxury Pop. This strategic approach to luxury shopping has created a new breed of collector-investors. Anand says abo
ut 50% of her customers are actively flipping now. Says Chitra Goenka of Labelcentric, an online marketplace of pre-owned luxury accessories: “These collectors monitor the market and identify pieces that are likely to surge in value. They scout websites for good deals and make strategic purchases.”
The 2024 Resale Report by US-based and Nasdaq listed RealReal, a prominent secondhand online luxury marketplace, says certain bags from The Row, Bottega Veneta and Loewe are selling at a premium of over 40% . Rati Sahi Levesque, president and COO of RealReal, said in the report:
“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. They are looking to invest in quality more, especially during a time of economic insecurity. It’s no longer about what’s new being what’s next—it’s about what’s going to last.
More than ever, shoppers are curating their wardrobes with a focus on distinctiveness and enduring value.” What began as a market driven by passion has turned into an investment space, where market knowledge and timing are as crucial as the products themselves.
THE FLIPPING CULTURE
The rise of flippers in the luxury market has fundamentally altered how consumers view high-end goods. Luxury items are no longer just about status or craftsmanship but their potential resale value.
The practice of flipping has also turned scarce luxury goods into available commodities, with platforms like Luxepolis, Chrono24 and RealReal acting as unofficial stock markets for sneakers, watches and handbags. It is also potentially eroding the very exclusivity that once defined these brands, says Vijay. One thing is certain: the race for luxury has never been this competitive.
( Originally published on Nov 09, 2024 )
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