French luxury group Kering, the parent company of Boucheron and Pomellato, has purchased a 5% stake in Vestiaire Collective, a pre-owned luxury e-commerce platform. With this latest move, the company is betting on the booming resale market to help woo younger and more environmentally conscious shoppers.
The investment is part of a 215m USD financing round announced on Monday which valued Vestiaire Collective at more than 1bn USD, the company said. Existing shareholders include Conde Nast and the French private equity firm Eurazeo.
The pre-owned fashion market has enjoyed rapid growth in the last three years, which was further accelerated by the pandemic as young shoppers lean towards sustainability and local consumption. “Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers,” said Kering CEO François-Henri Pinault. “Rather than ignoring it, our wish is to seize this opportunity to enhance the value we offer our customers and influence the future of our industry towards more innovative and more sustainable practices.”
In 2019 the market for secondhand luxury items—primarily watches and jewelry—was reportedly worth close to 25 billion USD worldwide, growing at 10 - 12% annually, faster than the luxury industry overall. By 2025 the sector is estimated to be worth over 60 billion USD the company said in a statement. Paris-based Vestiaire Collective said its transaction volume doubled in 2020.