How could I respond to this post:

While visiting The RealReal website, I was able to get some insight on how they market their products and how trustworthy they seem as a company on showing the real value of their secondhand luxury products. The first product I looked at was a Louis Vuitton Tote. This site gives the exact dimensions of the product, and the condition of the bag on a scale from fair to pristine. There is a button you can click on that describes each condition (for example, pristine says "items show no signs of being worn and include tags, box and dust bag"). The categories are pristine, excellent, very good, good, and fair. From a consumer perspective, this can show that the company is trying to be as transparent as possible about the conditions of their secondhand products, and for as much money as many of these luxury products are, you want to know what you are purchasing. Vestiaire is very similar to the other company and website, as they also have their own way of showing product conditions. Their conditions go very good condition, good condition, fair condition, never worn, and never word with tag. Again, consumers are able to trust that they are buying a product that fits the descriptions of what the website says.

Of course, being someone who cannot afford to spend $2,000 on a purse, I, along with many others, am looking for cheaper alternatives. Sometimes that is finding knock-offs or "dupe products", or buying secondhand. Personally from a consumer perspective, I believe that this market attracts a lot of people. There will be times where people or companies may not be fully honest with the condition of products, but for companies like The RealReal and Vestiaire, they really strive to make sure people know the value of their products on top of promoting sustainability. There is definitely a need for this market as well with the steep prices of many prestigious brands. I will get more into the specifics of the brand's perspective and take on the secondhand market in the next part of this discussion question, but it is important to note that some companies resell their products on these secondhand websites (such as The RealReal and Vestiaire) with a "brand-approved" sticker which help verify the item as genuine. Ultimately, some brands are on board with this secondhand market, while some are not. From a retail perspective, the secondhand market is a way to promote sustainability, as Gucci is doing to recycle/ upcycle. Kerig has an invested in Vestiaire Collective to enhance its customer experience and also boost sustainability efforts. According to the McKinsey and Company article, sellers that take part of this resale process do so for the following reasons: free up space in their closet, change in style, contributing to sustainability, collecting cash to buy more premium products, need for cash in general, etc.

Some brands are choosing to participate in the secondhand market by offering to buy back new items from customers and resell the goods themselves or send them to other online secondhand fashion sites which will often give the brands a cut of sales. Some see it as an opportunity to enhance customer experience and target a new customer base. Also, as I mentioned before, brands are doing this to promote sustainability. I believe that the brands that are on board with this market are ultimately trying to change consumer's perception of luxury products from a disposable product to an investment good.

The brands that show no interest in reselling their wares include Herms International, LVMH Mot Hennessy Louis Vuitton SE and Chanel. According to the WSJ, these companies are pushing back because promoting secondhand sales threatens the high-margin, firsthand sales on which a larger part of the industry depends. Chanel, for example, is pushing back by talking about limiting the number of products individual customers can buy in specific markets to reduce people buying product in bulk and reselling them. According to Max Bittner in the WSJ article, "some brands are reluctant to work with tech platforms, which charge a commission on each sale, because they want to keep control over their products and don't want to share revenues".

According to the WSJ article, consumers find the cost of secondhand products more attractive than firsthand equivalents and have less impact on the environment. Also, as I mentioned earlier in this post, increasing prices is also causing consumers to want secondhand luxury goods. According to the McKinsey & Company Article, 41% of people that buy these pre-owned products say it gives them access to hard-to-find products or products that are no longer available, 40% purchase these products because of its sustainability benefits, and 36% say it saves them money and are able to afford what they want. According to the study that was conducted on why people do/ do not purchase second-hand luxury products, 53% of respondents mentioned sustainability as their reason for buying second-hand. Economic reasons for saving money is also one of the strongest influences on people buying second-hand luxury products, according to the study. People have a dedication to brand loyalty, and I believe that a second-hand luxury market is a way for those products to be more affordable for some people that want to stick to a certain brand.