The Resale Market Is In Full Swing.

For those who are concentrating on going to sea. The Buddha For example, Perfunctory second-hand luxury e-commerce business It may not bring significant gains to the group.

Instantluxe's offline flash store

According to the "women's Wear Daily" news, Galeries Lafayette plans to close its second-hand luxury electric business website Instantluxe, while removing two service points of the site, located at the flagship store of Osman and Paris city hall.

The website is small in size and employs about 10 people. After the website is closed, the Department will arrange other positions within the group.

This decision seems a bit abrupt, because in November 2017, Instantluxe also launched a new luxury bag rental service. Its main business at ordinary times is to sell second-hand luxury goods that have been identified and focus on it. Leather, jewelry Watches and accessories.

It is reported that the reason for the closure of Instantluxe may be due to the lack of competitiveness. In 2016, the Department bought the website. At that time, the Department said: "with the evolution of people's consumption habits, the acquisition of Instantluxe can help the group to speed up the implementation of multi-channel strategy and provide customers with new shopping experience in this fast-growing industry."

But because Instantluxe is still in its infancy in France, it is smaller and less powerful than its more mature players, such as Vestiairecollective. The slow pace of development of Instantluxe led to the idea of abandoning it in order to find other investment projects.

When the second-hand luxury market is booming, the choice of the Department of general Lafayette seems to be contrary to the general trend.

In October, the US fashion resale website ThredUP estimated that the global secondary market reached $360 billion in 2017, of which online sales increased by 35%, much higher than the 8% growth rate of physical stores. It is estimated that by 2022, the scale of the secondary market will reach US $400 billion, while fashion products will be the leaders of development. German financial institutions Berenberg analysts also said that the second luxury market ratio. Luxury market The growth rate is more than two times higher.

Quick response capital market This has already been reacted. For example, LVMH group's private equity fund has invested in the Stadium Goods, a fast developing US second-hand shoe retailer, with a total spanaction volume of more than US $100 million in fiscal 2017.

The designer brand Stella McCartney has also established a cooperative relationship with the US luxury luxury website The RealReal, and has hosted the The Future of Fashion is circular (the future of fashion is recycled). Activities cover radio, television and social media, calling on people to try to "resell" this mode. In order to encourage consumers who have purchased products to resell the goods they do not need on The RealReal, each seller can get a $100 coupon provided by the Stella McCartney and the platform for the purchase of new stores.

The The RealReal founder and CEO Julie Wainwright revealed in July this year that it is consulting with LVMH group and Kai Yun group for cooperation and is likely to be listed in the future.

However, under the trend of this industry, old Buddha's department stores abandon second-hand luxury goods. E-commerce business It is likely to be temporary because the CEO Nicolas Houz e of the Department of general of Buddha said that since 2014, the Department has spanformed from a traditional department store to a "full channel retail leader with French lineage", so the future strategies will revolve around the three priorities of digitalization, internationalization and accelerated reengineering. But it is currently focusing its efforts on overseas expansion.

In December 2017, in order to promote the layout of China and the Middle East market, the Department of international development was established by Lafayette department store to help these two regions plan to open 20 stores in 5 years. At the end of this year, a new store will be opened in Shanghai Lujiazui Central Mall.

At the same time, Lafayette department stores invested in digitalization, and acquired the French electric giant La Redoute in August 2017 to provide more furniture decoration products. Marc-Andr Kamel, partner of Bain consulting, once said that the acquisition of La Redoute could not only bring about 750 million euro sales per year for old Buddha, but also speed up the overall spanformation process of Lord Buddha.