TRIPLE P allows management, authenticate, identify, transfer and pay for items in decentralized secondary
lifestyle economies. Having safe access to unique physical and digital products enables the community to
bring quality craftsmanship in continuous circularity.


The “End of Ownership” that McKinsey and the Business of Fashion presented as a con- sequence111 of
mindful consumerism will also lead to different outcomes than the growing desire for rental markets we
explored in the last section. “End of Ownership” mostly means that lifestyle consumers attach less and
less importance to the permanent ownership and instead embrace the prospect of temporary ownership. The
prospect of being able to sell a lifestyle product on secondary markets later on changes the nature of
ownership, value, and choice – the individual item becomes more of an investment good.


This shift to thrift is triggered by similar dynamics as the ones we discussed for rental markets: modern
consumers demand variety, novelty, availability, and sustainability. On top of that, we are seeing that
over the past few years, a large number of luxury brands tend to have raised their prices. For example,
prices of fine watches and jewelry have nearly doubled since 2005112. Tracking global prices of Louis
Vuitton’s Speedy 30 handbag suggests an increase of approximately 19 percent per year since 2016113.
McKinsey and the Business of Fashion concluded that in the light of increasing unattainability, “even
consumers with six-figure incomes are looking to discounts and alternative models of acquisition for
relief114.


These changing attitudes to ownership are mainly a hallmark of the millennial and Gen Z lifestyles, which
do not only represent the mainstream consumer base of the near future but constitute a large portion of
the lifestyle clientele already today. In the youthful streetwear sector, this cohort has long embraced
resale with vigor. The street-wear market is characterized by the much-hyped ‘drops’ of new products,
which then often get traded at prices many times the original price. As we see high-end streetwear and
luxury progressively converging, the negative connotations often associated with second-hand luxury are
equally shaken off. The growth of fashion retailers, such as Net-A-Porter115 or Farfetch116, has further
broken down the barriers of the resale economy, as it has shown consumers that they do not necessarily
need to visit the brand to have a luxury experience and made them more comfortable buying high-end
pieces from online platforms. In 2018, the Harvard Business Review found that “there’s no longer a
negative connotation associated with shopping pre-owned”.

While the 2018 GlobalData consumer survey found that one in three women shopped secondhand in the
previous year, this rate is naturally higher for the specific consumer cohort of mindful millennials. More
than any other age group, 40 percent of 18 to 24 year old shopped lifestyle resale in the same year118.
This development is noticeably taking up speed. Globally, the resale apparel market is expected to record
a 15 percent annual growth until 2022119. In the US specifically, resale is likely to grow 24 times faster
than the retail sector, with 71 percent of consumers planning to spend more on resale over the next five
years. Global fashion search engine Lyst has reported that traffic to luxury resale products has increased
by 447 percent over the past six months120. The extent of this growth gets more tangible if we turn to an
analysis of e-commerce company ThredUP. Based on a large-scale survey of lifestyle customers, they
claimed that the average consumer’s closet consisted of 6 percent resale items in 2017 and expect this
proportion to be at 11 percent in 2027121.


This continuous growth of secondary markets in the lifestyle economies is to the benefit of all parties
involved. It is creating a new paradigm – a high-end product eco-system that can be considered a win win for the entire industry122. While the benefits for consumers are straightforward, the perspectives
of brands are on the brink of a necessary change.


For a long time, especially high-end and luxury houses have insisted that selling products second-hand
weakens brand value and encourages counterfeiting. In March 2018, for instance, Chanel filed a strongly-worded lawsuit against reseller What Goes Around Comes Around123 and another one against The Real
in November. This was because they found at least some of the significant array of second-hand
Chanel good being peddled on these marketplaces to be fake. Further, they criticized the ways in which
the luxury re-sellers were allegedly piggybacking on the reputation and appeal of Chanel, one of the most
esteemed fashion houses in the world, for their own financial gain.


However, if done securely and with unequivocal authentication, liquid secondary markets for lifestyle
goods should be embraced also by established brands for a number of reasons. First, the Harvard Business
The review found that most sellers reinvest their resale earnings in purchases of new lifestyle goods, leading
to a higher turnover126. Second, first-market buyers can be less risk-averse. The more conviction
consumers have that the lifestyle goods they buy are liquid, the more purchases they are willing to make
at retail, even accepting to pay higher prices than they usually would. This touches upon the shift from
permanent ownership to the idea of investment – while some high-end goods might be out of pocket
initially, the certainty that consumers can recoup some of their investment later makes this feel less like
an absolute commitment. Third, many buyers of pre-owned luxury are also first-time buyers who get to
experience a new brand for the first time. From that perspective, these resale services are a customer
acquisition channel for luxury brands and a veritable gateway for younger consumers to enter their brand
experience.

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