Secondhand Gifting Takes Off For the HolidaysSecondhand Gifting Takes Off For the Holidays

Times are changing and, with that reality, so are consumer shopping trends. Secondhand buying is now in vogue, driven by tightening budgets, an interest in sustainability, and the love of a treasure hunt. And many shoppers are okay—apparently more than okay—with buying secondhand not just for themselves but as gifts, as seen as the holidays approach.

Many are splurging with their money savings and snatching up pre-owned, high-end brands as gifts that may otherwise have been out of their price range.

A 2024 Recommerce Report of online retail marketplace OfferUp finds that two of three shoppers plan to buy pre-owned for their family and friends this holiday season.  That figure is up seven percent over 2023.  And Gen Z’s are leading the charge with 83 percent of them saying they will go this route.

The concept of thrifting once conjured the notion that what these resale shops shelved must be broken, shabby, or just plain inferior in quality than new.  So why the change in mindset?

OfferUp’s survey participants (61% of them) believe unfavorable perceptions toward secondhand are waning in light of greater concerns around waste and overconsumption. And shoppers seem to like having more options in the way of unique finds over the standard sweater, scarf, or other traditional options.

There’s a fast-emerging subset of thrifting: the secondhand luxury market, which hit $49.3 billion in sales worldwide in 2023. This specialized niche could be worth $64 billion by 2025, according to Bain & Company.

The trend has spurred the launch of a new industry group: The Luxury Resale Association made up of a network of resale business owners and vendors who have begun collaborating with the intention of shaping the luxury resale industry’s future.

Luxury, vintage, and secondhand have become intertwined, says Deanna Thompson, executive director, Luxury Resale Association.

“At its core vintage is what makes secondhand luxury desirable. People want to find pieces from the past that are no longer being produced. And they will pay for specific styles from specific eras of a brand,” she says.

That’s not to say shoppers don’t get good deals—at least as luxury goes—depending on the merchandise, a pre-owned item can still come with a six-digit price tag.

Max Pawn Luxury customers can save up to 50 percent off of the original price, says Michael Mack, the company’s president.

He and parent company EZCORP do good business, while doing their share to pump a circular economy.  This year, EZCORP recycled over 5.2 million secondhand products.

The impact adds up.  Buying just one used item instead of new can save about 2.2 pounds of waste, 48.5 pounds of CO₂ emissions, and 800 gallons of water, according to Thompson.

Statistics like these speak to the fast fashion problem.

“Fast fashion has come under fire for its unsustainable practices, including poor labor conditions, excessive waste, and environmental degradation. Secondhand luxury offers a counter-narrative, promoting quality over quantity and emphasizing long-term value rather than disposable trends,” says Thompson.

With Christmas and Chanukah around the corner, Max Pawn is getting busier. What’s hottest are high-end handbags, watches, and jewelry, especially gold and lab-grown diamonds. Younger generations are grabbing up a new product category: sneakers.

The shop’s customers can sell their luxury items in store or online. There’s another model gaining traction among buyers: virtual on-line shopping sprees that Max hosts on-camera where he pulls collections from display cases and lays them out. If something captures onlookers’ interest, they can ask questions in real time, and if they want it they can purchase it directly through the live broadcast.

“Live shopping has been a game changer for us.  During these events not only are we able to highlight our collection, but also foster a sense of community among shoppers and collectors,” says Mack.

Social media is also proving a way to create a sense of community and pump sales. He is seeing people share both financial and sustainability benefits, as well as the pieces they buy.

But how do they know that the Louis Vuitton, Chanel, or Rolex they laid cash out for is the real thing? To be able to answer that question with confidence, authentication becomes important, notes Beth Anundi, co-founder, The Luxury Exchange and Capital Pawn & Couture.

Her team is trained to follow a protocol to identify authentic pieces from those that are unidentifiable. And, like many of her competitors, Anundi relies on third-party AI technology that uses machine learning algorithms on microscopic images to distinguish between genuine and counterfeit designer goods.

Some of the luxury brands themselves have become part of the resale movement, whether motivated by profits or for one more way to reach their sustainability goals. Gucci and luxury resale platform The RealReal launched an online store to sell pre-owned Gucci lines. Rolex launched its own “Certified Pre-owned Programme.” Other high-end brands are partnering to offer similar options to their customers, sometimes with incentives like store credits.

Thompson credits the secondhand luxury market for playing a role in inspiring brands who are now helping to advance reuse.

“This shift signals a broader commitment to reducing waste and embracing circularity across the luxury sector,” she says.

The secondhand luxury market is not just about providing access to affordable luxury, she says.

“It’s a powerful driver of sustainability in the fashion and luxury industries. From reducing waste and carbon emissions to fostering circularity and ethical practices, this market proves that luxury and environmental responsibility can go hand in hand.”