India: The Second Hand Luxury Industry Is Up To US $2 Billion A Year.

It is understood that people are no longer secretly selling old clothes to buy new or rarely used evening wear. Many secondhand goods websites are for sale. Second hand luxury goods High street brand clothing, sportswear and accessories, these websites gradually attract those who want to have the most high-end brands but do not want to empty their wallets.

Onika Oberoi is a designer in Delhi, India. She recently showed up on a GUCCI. Bag Very fascinated, but after Google search found that this bag has been discontinued. But what pleased her is that she can now get what she wants, because a second-hand luxury website is selling a used bag, half the price.

In addition to satisfying people's ostentation, luxury brands such as Chanel and Burberry have also cured Indians of their disgusting feelings about wearing old clothes. Many start-ups specialize in this business to meet the growing demand of the public.

Confidential Couture, Elanic, Spoyl, Envoged, Zapyle and Refashion are all secondhand commodity websites or app. Their founders have drawn inspiration from Rebagg, Poshmark and Tradesy these international second-hand luxury transaction platforms, thus creating their own platforms, which are challenging the common websites such as Rebagg, e, e and Amazon.

" Second hand luxury goods industry The annual market size is as high as 2 billion US dollars. We see that the number of users and the frequency of transactions are growing rapidly, "said Aditi Rohan, co-founder of Elanic. Elani is a app for resale clothing, with 30 thousand users, and app has 300-400 listing per day.

Elanic has obtained investments from Rebright Partners, Traxcn Labs and Aneesh Reddy. "We are going to expand our product line and add women's accessories and men's products on the basis of fashion," Rohan said. The company plans to add 2000 listing a day from next month.

The operation system of the industry is very simple: sellers sell shoes or clothes that are not worn on the Internet, and then the company collects, inspected, cleaned, priced and sold them. The price of goods is usually half of the original price (for example, a Burberry dress, the original price is 85 thousand rupees, the current price is less than 20 thousand rupees), and buyers can bargain. Each transaction website receives a 15%-20% Commission.

There are also many challenges in the industry, such as ensuring the authenticity, quality and cleanliness of the products, so as to ensure that the clothes look the same as the new ones. "From the perspective of long-term development, ensuring the authenticity and quality of goods is the main driving force for maintaining business growth. We have 100 thousand registered users, with an average transaction volume of 5000-6000 rupees per user. But delivery is a challenge, because we have to collect goods from sellers, ensure that goods are not out of shape, and ensure that distribution is smooth and unimpeded, "said Anandita Singh, co-founder of Envoged. Most of the founders were surprised by the fact that a large number of sellers and consumers came from two or three tier cities, so many founders planned to develop their businesses to cities like Ahmedabad, Ludhiana and Chandigarh.

However, they also admit that most of the current users are sellers. "Supply is greater than demand at present, but the situation will change over time," Singh said. Some sellers still sell a series of products online, waiting for buyers to buy them.

For example, Shubha V, 24, listed 44 garments in Elanic and sold 8 items. She saw ads on Facebook, then downloaded app, and released a lot of clothes she wanted to dispose of. Elanic's fashion expert passed her application within 24 hours, and some buyers asked questions. The 7 items she sold were priced at 30-40% of the suggested retail price.

Although she sells clothes that she does not wear, she says she will not buy second-hand clothes. "Many e-commerce platforms sell branded clothing at a preferential price. So I can't see why I want to buy second-hand clothes. I guess some people won't worry about buying second-hand clothes, but I will. "

Industry start-ups say this view will change. "The goal now is to set up a market so that consumers can realize this industry. The normal result is that the volume of transactions will increase, "said Bhargav Errangi, founder of Spoyl website. The website is considering offering" rental "options.

Alok Mittal, an investor at Envoged, says younger consumers are not worried about second-hand goods. "More than 20 year old young people can't afford to buy a GUCCI on their salary," he explained. "Once they have a good experience, the stock of the website will increase and consumers will come back. This is the natural process of evolution. "

As the founder of Tracxn and angel investor of Elanic, Abhishek Goyal said that the market has potential to develop to a certain scale. "It may even account for 10% of the total retail market," he said. Both Goyal and Mittal say that companies need to win the trust of users by ensuring the quality of products, especially because this model is still in its infancy and needs to be verified by the market.

It seems that the development of the second hand fashion industry is just beginning.