**The Booming Secondhand Luxury Market and the Critical Role of Authentication**
In recent years, the global market for secondhand luxury goods has undergone a remarkable transformation, rapidly outpacing the growth of the traditional luxury sector. As more consumers seek out pre-owned designer items—from handbags and watches to shoes and accessories—the need for reliable authentication has become the pivotal factor distinguishing trustworthy resale platforms from those that fall short.
**Rapid Growth of the Secondhand Luxury Market**
According to a joint report released on October 9 by the Boston Consulting Group (BCG) and luxury resale platform Vestiaire Collective, the resale market for fashion and luxury goods is expanding at an annual rate of 10%. This growth rate is three times faster than that of the primary, or firsthand, luxury market. The report projects that the global resale market could reach up to $360 billion by 2030, a substantial jump from its current value of approximately $210 billion.
Several factors are driving this surge. Affordability remains the top motivation for buyers—80% of survey respondents cited lower prices as their main reason for purchasing secondhand luxury items. However, the appeal of the resale market extends beyond just saving money. Many shoppers are drawn to rare or discontinued pieces that are no longer available in stores, making the secondhand market a treasure trove for collectors and fashion enthusiasts alike. According to Samantha Virk, Chief Marketing Officer and U.S. CEO of Vestiaire Collective, these motivations are strengthening over time, signaling that secondhand shopping is becoming deeply ingrained in how people engage with fashion today.
**The Challenge of Counterfeits: Rise of the ‘Superfake’**
With the market’s expansion, however, comes a significant challenge: the proliferation of high-quality counterfeits, sometimes referred to as “superfakes.” Counterfeiters have become increasingly sophisticated, often using materials sourced from the same suppliers as luxury brands and replicating fine details with remarkable precision. As a result, some fake items are so convincing that even the original brands occasionally fail to identify them as counterfeit—sometimes even unknowingly repairing them.
These “superfakes” have created a climate of uncertainty and risk for buyers, with numerous stories surfacing online about individuals paying thousands of dollars for fake Hermès bags or Rolex watches with swapped or imitation parts. The prevalence of such incidents underscores the need for stringent authentication processes, especially as the stakes are high and the sums involved are often substantial.
**Authentication: The New Battleground for Resale Platforms**
Given the risks, authentication has emerged as the crucial differentiator in the secondhand luxury market. The industry has traditionally operated on a “caveat emptor” (buyer beware) principle, but this is rapidly changing. Leading resale platforms are now investing heavily in verification systems to ensure the authenticity of the goods they list and to protect both their customers and their reputations.
**Carousell’s Approach: Combining Technology and Human Expertise**
Singapore-based Carousell, a major online marketplace, exemplifies this shift. Earlier this year, Carousell took the significant step of opening its first brick-and-mortar store dedicated to luxury items in downtown Singapore. The store serves as both a retail outlet and an authentication hub, where sellers can have their items appraised and graded by the company’s experts before listing them for sale.
Tresor Tan, Director of Sales, Marketing, and Client Relations at Carousell Luxury, explained that the verification team examines not only the material of an item but also scrutinizes minute details such as stitching, stamping, and other brand-specific markers. This meticulous process is crucial, as the authenticity of a luxury item is often determined by subtle details that are difficult to replicate perfectly.
To further bolster its efforts, Carousell has developed a proprietary database encompassing nearly 500 product styles. High-value items undergo multiple rounds of checks. If there is any doubt about an item’s authenticity, it will not be listed on the platform. This commitment to thorough verification is coupled with a money-back guarantee on authenticity, offering buyers additional peace of mind. As Tan noted, “At the end of the day, it’s our reputation at stake as well.”
The move into physical retail was driven by user demand, particularly for high-value transactions. “When someone is buying and selling a $100,000 watch on the platform, it definitely catches our attention,” said Tan. The store’s presence reassures both buyers and sellers that transactions involving significant sums are conducted under the