E-Commerce has become synonymous with almost everything in the current times. Be it low involvement products, or high involvement products, E-Commerce is something which has disrupted the concept of marketspace.
There are certain E-Commerce giants like Amazon, Alibaba, Flipkart, Etsy etc. which provide top-notch products. The main reason why E-Commerce is looked up to in the current times is because of the discount they provide.
If we talk in the context of designer shoes, such shoes are available in huge quantities in these stores. These shoes are sold for at least 20% discount, and these are proper branded unused designer shoes.
However, during certain events like big billion day sale, Diwali Sale, Dussehra sale, they offer discounts up to as high as 70%, which makes E-Commerce a lucrative market, and instead of visiting the second hand designer shoes market, the customers might purchase the original brand at discounted price. This might reduce the demand for second hand designer shoes big time.
With cut throat competition in the second hand designer shoes market, Depop, Zulily, and Vestiaire Collective are taking every possible step to stay ahead of the pack.
Depop is a peer to peer social E-Commerce company, which is based in London. It was originally started as a social network, where people could buy items featured in a magazine. It was after realising that they needed a selling function, that Depop evolved into an E-Commerce firm.
Kruti Patel Goyal has been appointed as the Chief Executive Officer and will take over the charge from 12th September’22. She is known for her deep expertise in marketplace dynamics, having held a range of leadership roles at Etsy.
Zulily is a well-known brand, serving this niche since 2009. It holds no inventory. Instead, it consolidates shipments of vendor-owned merchandise at its fulfilment centers, or sends them directly to their customers. It also possesses a ‘large heart’ as it gives discount on a daily basis.
In January 2022, Zulily launched a best time to shop report as a roadmap to maximise savings for savvy moms. In the current times, when there are challenges pertaining to supply chain management, shopping to find the best selection of items is not an easy task. It is only to make the task simpler that Zulily had launched the report.
Vestiaire Collective is another platform which has made the concept of buying, selling and sharing much simple. Thanks to its user-friendly mode of operation. It also has the reputation of being the leading online marketplace for pre-owned luxury fashion.
The best thing associated with Vestiaire Collective is that once the item clears the quality control, only then it will be shipped.
In June 2022, Vestiaire Collective launched a localised service in South Korea. This launch will give the South Korean community an access to 5 million items, with 25000 new pieces being added every day, and allowing South Korean sellers to access the overseas market as well.
The second-hand designer shoes market is valued at US$ 421.8 million as of 2022. It is expected to grow at a CAGR of 7.8% during the forecast period and is anticipated to be valued at US$ 893.9 million by 2032.
What Makes the Second Hand Designer Shoes Market Robust?
Saving the environment: There is a lot that is taken into account while manufacturing a brand-new designer shoe. Apart from the labour, the usage of non-renewable energy and natural resources ensure that the final material is manufactured based on the set specifications.
When such designer shoes are manufactured on a large scale basis, it will lead to depletion of resources hastily. The usage of second hand designer shoes not only reduces the consumption of such natural resources, but also reduces pollution because of reduced industrial activity. This is something which supports the idea of sustainable development.
Getting high quality products for a low price: If we talk about the most important driver of the second hand designer shoes market, it has to be low cost.
In many cases, the second hand shoes would cost as less as one fourth or even less than the prices of the brand new designer shoes. This is expected to increase the sales of second hand designer shoes.
Avoiding unethical practices adopted by manufacturers: There are certain designer shoe manufacturers who would be charging unfairly higher amounts for the shoes they sell. This is done by satiating a market looking for good quality designer shoes. This is something which is against human rights.
In a way, the second hand designer shoes retailers help in building a fairer world by charging prices, which in many cases, should have been the original price.
Great opportunity for local businesses: One of the most underrated, yet significant benefits offered by the second hand designer shoes market are that these support in the establishment local business.
This is useful, especially for developing economies like India, China etc. because the authorities in this region are supporting the cause of setting up local businesses. This would most certainly surge the demand for second hand designer shoes.
No packaging: Usually, when we buy a new pair of designer shoes, it has some kind of cardboard packaging associated with it.
However, if we buy second hand designer shoes, the retailers do not indulge in such kind of packaging. This reduces waste accumulation in the area. Such initiatives will definitely be supported by the society at large.
Emergence of online stores: In the technology driven era, we can purchase second hand designer shoes through online mode as well. The online mode has increased the customer base line because of its reach and rapid internet penetration. This might increase the sales of second hand designer shoes.
What are the Restraints Faced by Second Hand Designer Shoes Market?
No warranty on products: Somewhere down the line, there are times when we have to trade-off between cost and warranty.
Unfortunately, the second hand designer shoes market presents this challenge in front of us. People who purchase second hand designer shoes from such marketplaces usually do not have the option to avail warranty.
The shoes might be damaged: One of the most frequent issues that customers face while making purchases from such stores is that they receive damaged products. Moreover, many stores also do not provide replacement of these designer shoes. This might hamper the demand for second hand designer shoes.
Time-consuming process: Whenever we buy a pair of brand-new designer shoes, it is just a matter of liking the brand and the quality.
However, if we make such purchase from second hand designer shoes market, we become extra careful. The reason being these shoes have already been used by someone else. So, before making the final purchase, we need to carry out complete inspection from our side, which is a time-consuming process.
Risk of developing infection: There is a high probability that the second hand designer shoe retailer might not have taken proper care of these shoes, after it was being sold to him.
Consequently, when someone would have purchased the same pair of shoes from the retailer, the buyer after some days might develop issues relating to feet fungi. This might hamper the sales of second hand designer shoes going forward.
Working against status symbol: We are at times when people love to be associated with blue blood. For this reason, certain section of people are willing to invest high amounts as well.
Thus, buying second hand designer shoes is something that serves against the very idea of status symbol. This is something which may have a negative impact on the image of the second hand designer shoes market.
Segment Wise Insights
Women’s Segment Leading the Way
The women’s segment had a market share of around 49%. Increasing interest on designer and branded designer shoes amongst women are expected to drive the market during the forecast period as well. However, if we talk about the fastest growing segment, it is the men’s segment, with an expected CAGR of almost 5.7% during the forecast period. Celebrity endorsements are something which is driving the men’s segment at such a rapid pace, and they are willing to buy second hand designer shoes. This might as well increase the sales of second hand designer shoes.
Offline Channel to have a Greater Chunk of Market Share
Despite the penetration of internet, and growth of certain online stores, it is the offline segment that had dominated, with a market share of about 72%. The reason being, as far as the second hand designer shoes are concerned, these are something which customer would personally want to assess and then buy, as there are chances of irregularities. So, the concept of touch and feel is driving the offline channel in the second hand designer shoes market.
Competitive Landscape
The key market players operating in the second hand designer shoes market are taking initiatives from their side to make their interface user friendly. For this, they are launching features allowing buyers to make an offer on any listing at the click of a button. This will help buyers get the best deals by enabling an easier, quicker, and more accessible negotiation process.
Some of the recent developments are:
· In May 2022, Depop partnered with EcoEnclose to bring its US sellers more sustainable packaging solutions.
· In March 2022, Tradesy was acquired by Vestiaire Collective SA, a global online pre-owned fashion marketplace, headquartered in Paris.
These insights are based on a report on Second Hand Designer Shoes Market by Future Market Insights.
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