As secondhand luxury soars, authentication becomes a new gold standard

As the planetary marketplace for secondhand luxury items surges, authentication has go the defining origin separating credible platforms from the rest.

The resale marketplace for manner and luxury items is expanding astatine an yearly complaint of 10%, 3 times faster than the firsthand market, according to a study released Oct. 9 by Boston Consulting Group and luxury resale level Vestiaire Collective.

The study projects the planetary resale marketplace could scope up to $360 cardinal by 2030, from astir $210 cardinal today.

With much shoppers buying pre-owned decorator brands, spot has go paramount. "As counterfeit manufacturing becomes progressively sophisticated, adjacent luxury brands themselves sometimes neglect to observe fakes, successful immoderate cases, unknowingly repairing counterfeit items," said Jaewha Choi, CEO of South Korean online marketplace Bunjang.

Horror stories abound online of radical paying thousands for fake Hermès bags oregon a Rolex Oyster Perpetual watches with swapped parts. Some counterfeits are truthful convincing they are dubbed "superfakes," reportedly made with materials from the aforesaid leather suppliers arsenic the archetypal brands.

However, arsenic the resale marketplace expands, authentication has go a increasing concern. The secondhand manufacture has agelong operated nether the regularisation of "caveat emptor," oregon purchaser beware.

To antagonistic progressively realistic "superfakes," resale platforms are pouring resources into verification. Singapore-based online marketplace Carousell opened its first brick-and-mortar store for luxury items successful downtown Singapore this year, allowing sellers to have their items graded by 1 of the company's appraisers before listing them for resale.

The verification squad inspects not lone the worldly of a container but besides details similar stitching and stamping, Tresor Tan, Director of Sales, Marketing and Client Relations astatine Carousell Luxury, told CNBC.

"At the extremity of the day, it's our estimation astatine involvement arsenic well," Tan said. "And due to the fact that of that confidence, we besides connection our buyers a money-back warrant connected authenticity."

The institution has built a proprietary database covering astir 500 merchandise styles, and higher-valued items spell done aggregate checks. In cases wherever the authenticity is successful doubt, the items volition not beryllium listed, Tan said.

South Korea's Bunjang has besides followed successful the aforesaid vein, processing its ain proprietary authentication strategy that combines accepted ocular inspections with technological instrumentality and artificial quality "trained connected hundreds of thousands of information points," Choi told CNBC.

Bunjang claims a 99.9% authentication accuracy complaint successful identifying genuine goods, and its verification strategy tin continuously larn and accommodate to counterfeiting methods by leveraging AI.

Both Carousell and Bunjang said verification has boosted business.

Bunjang said luxury goods present marque up much than a 4th of its platform's $1.1 cardinal successful yearly gross merchandise value. Transactions and full worth for luxury goods roseate 30% twelvemonth connected twelvemonth successful the archetypal fractional of 2025, Choi said.

Carousell's Tan did not disclose circumstantial figures but said the luxury conception has seen "very beardown interest" and has recorded "great growth."

This maturation that began with Carousell's 2012 motorboat arsenic an online level yet led to the opening of its archetypal carnal store.

"When idiosyncratic is buying and selling a $100,000 ticker connected the platform, it decidedly catches our attention," she said, saying that users wanted Carousell's oversight successful high-value transactions.

Along with its verification process, the store besides offers a money-back warrant for its products. Tan said that portion prices whitethorn not ever beryllium the lowest successful the market, the store aims to connection "fair value."

"We whitethorn be, say, $200 much costly than what idiosyncratic other is offering, but [consumers] volition inactive yet measurement the antithetic options for $200 savings," she said. "Am I amended disconnected with a spot of assurance?"

Affordability is the apical crushed for buying secondhand luxury items, cited by 80% of respondents, according to BCG's report.

Younger shoppers, with their constricted spending power, similar to buy, bask and rapidly resell items, Bunjang's Choi said.

"This singular maturation reflects a cardinal displacement successful however Millennials and Gen Z, the adjacent question of luxury consumers, comprehend and prosecute with luxury goods."