luxury designer labels are something that many aspire to buy, but they remain out of reach for many due to various reasons. PRAKRITI ROY speaks to people who have entered the pre-owned luxury products business in India to know how it works and why the trend is picking up
A bag from Gucci or louis Vuitton, a scarf from Hermes, a Burberry coat, a watch from longines. Or closer home, a Sabyasachi lehenga, an anarkali by Tarun Tahiliani or a saree by Manish Malhotra. Every avid lover of fashion and luxury products has dreamed of owning exclusive pieces from these luxury brands.
For doing so, budget is always a constraint as these labels come very dear. However, a small number of entrepreneurs in India are now cashing in on this desire of Indians to buy luxury labels but at much affordable prices. Termed as ‘re-commerce’, a niche market has developed in India that buys and sells pre-owned or second luxury products online. As the name suggests, it is a reselling of sorts, except that it’s no more limited to something like a car or a home.
One such company in this market is luxepolis, which has already made a name for itself in the past year or so, buying and selling luxury products in India. Explaining how it works, Vijay KG, CEO, luxepolis, says: “We facilitate the selling process between the buyers and sellers. So basically, once we acquire the product that someone wants to sell, it goes through a rigourous process of authentication and quality checks that is outsourced to an international agency. After that, the product is sold to an interested buyer at a price that is anything between 30-70 per cent of the original rate.”
Dimple Mirchandani, CEO, Secret Dresser, which is also in the same business, says: “It isn’t always that people sell their used stuff. Sometimes, it is brand new. Basically, only people who have a surplus of luxury products give them away so that they can be used by someone else, instead of just throwing it away. It’s all about sharing.” For the satisfaction of the buyers, these websites can also provide a certificate of authenticity to prove that the product is not an imitation.
What these websites have essentially done is that they’ve made luxury products much more accessible and affordable to the consumers. Vijay tells you that luxepolis gets 40 per cent of its orders from tier II and III cities and from far-flung districts that you have probably never heard of. The reason for this is probably that a brand like louis Vuitton, which believes rigourously in its exclusivity, is available only at its outlet in DlF Emporio, Delhi. Websites like these offer people the much needed accessibility to purchase these products.
The most popular items that are sold on websites and apps like luxepolis, Secret Dresser, Confidential Couture and Envoged are the accessories — bags, watches, scarves and so on. There are still apprehensions in the minds of Indians regarding buying apparel that has been worn by someone else. But Mirchandani says that clothes that are just worn once and then refurbished and sold are almost as good as new. So this is just a mental block that will take some time to clear away. However, the trend of renting apparel still seems a long way off and is probably not really for the Indian market.
The industry of buying and selling pre-owned luxury products has been there in the West for quite a while now. People like Vijay started entering this niche industry when they realised that the only second-hand luxury industry is for cars and there is a void in the second-hand luxury goods industry in India. Due to this, those Indians who wanted to buy the products did so when they went on foreign trips. It was to tap this market that such ventures have started coming up. Vijay reveals that his business is growing by 10 times every month! He estimates that by 2025, the industry will grow to $60 billion from the current $18 billion.
This industry has not just opened for those who want the luxury labels but also for those who are interested in high-fashion brands like Zara, Mango and Forever 21. If one is a college students or young professional living in a metro, they can’t always afford to buy these brands. However, with an app like Elanic that mostly resells these high street brands, the apparel becomes much more affordable for these youngsters. “Currently, women’s fashion is our biggest selling category with western wear selling the most — the top brands would be mid-tier brands like Zara, Vero Moda and Mango. Most of the products that sell are listed anywhere between 25 per cent to 50 per cent of the original price,” says Abhilash Narahari, co-founder, Elanic.
The immense variety and accessibility that these platforms provide is the biggest factor in the growth of this industry. So whether you want a lehenga from an Indian designer or a gown from an international label, it’s all available at the same place. In fact, Mirchandani reveals that the mere fact that it is an authentic piece also manages to get very high rates sometimes, even if the condition is not great.