Understanding the Culture of Consuming Pre-owned Luxury

Abstract

This chapter examines the psychology behind the buying and selling of pre-owned luxury fashion and accessories. Given the substantial growth within the market plus the many and varied contributing factors involved, the chapter looks at what motivates luxury goods collectors, why certain luxury purchases can be seen as a financial investment, and the sale of counterfeit goods (knowingly and unknowingly). We examine some of the business models used within the industry, analyse the influence that opinion makers and leaders can have, and reflect upon the power and impact of social media. We explore consumer motivations in order to enable retailers to better fulfil the needs/wants of consumers and to increase consumer satisfaction, which can increase brand loyalty and consumption. This chapter examines a variety of contemporary trends combined with factual research and practitioner interviews to enable pre-loved fashion and accessories retailers to optimise and adapt to the ever-changing market. At the same time, it outlines strategies that businesses and individuals can use to explore consumer motivation and generate sustainable business. By understanding what drives society to consume luxury and the changing needs/wants in a modern world, the chapter enables retailers to act progressively and competitively. Society can gain greater awareness around why we do what we do in terms of accumulating and disposing of pre-owned luxury goods. Luxury goods consumption could be seen as more than frivolous actions when investment figures and ideas are highlighted and explored. In the corporate world, it may encourage conglomerates to think more about the longevity of items produced. There is still little research available on the pre-owned luxury goods fashion market.