Posted on 2024.07.29 13:47
Edit 2024.07.29 14:30
[The World of Luxury Goods by Ahn Hye-won] Episode 55
Generation MZ seeks out vintage luxury goods
Idol star Jennie from Blackpink is often seen wearing vintage luxury brands like Chanel and Celine. Photo = SNS Captured by Lee Chae-rin (26), a Generation Z office worker, who frequently visits her mother’s closet or dressing room. The goal is to “discover” old luxury items like Prada, Coach, Longchamp, etc., that her mother purchased in the past. The trend of embracing vintage luxury is gaining traction among her peers. She remarked, “Sometimes I inherit a luxury bag from my parents or relatives from long ago, and if I don’t have one, I go to second-hand markets to find popular vintage pieces myself. Prices are on the rise.”
Currently, there’s a saying in the luxury goods sector that second-hand items are selling better than new ones. Notably, the MZ generation (comprising Millennials and Generation Z), particularly those in their 20s and 30s, are at the forefront of this market. Even idols like Jennie from Blackpink and RM from BTS have engaged in the trade of second-hand goods and are seen wearing vintage items. Why has the MZ generation developed such a keen interest in vintage luxury goods?
How does the MZ generation enjoy old luxuries?
If you search for “vintage” and “luxury brand” on online second-hand platforms, you’ll find a plethora of listings related to buying and selling. Even if it’s not extremely high-end, products that are 10 to 20 years old and in good condition, such as those from Prada and Coach, can be priced between 700,000 to 800,000 won or even exceed 1 million won.
Photo = Hankyung DB of shelves at a second-hand luxury goods store. Some individuals visit specialized stores or pawn shops in the Apgujeong area of Gangnam to buy second-hand luxury items. While these items may be pricier than those in online second-hand markets, they bear a lower risk of being counterfeit. “Previously, we only accepted old products from high-end brands like Chanel or Hermès, but recently we’ve begun accepting those from Prada, Coach, and even Longchamp,” said Park, CEO of a second-hand luxury goods store in Gangnam. He added, “We are indeed focusing on vintage products that are over 10 years old.” “Interestingly, even young people in their early 20s are now visiting our store,” he noted.
As trend-savvy fashion enthusiasts began to share images of themselves adorned in vintage luxury goods on social media platforms, these items transitioned from being hidden away in old wardrobes from the 50s and 60s to officially making their mark in the market. Recently, young American singers like Olivia Rodrigo (21) and Dove Cameron (28) were spotted carrying vintage Coach bags, and videos showcasing the collection or upcycling of vintage Coach bags are gaining traction on TikTok.
Photo = SNS Capture of Jungin from Ragpink wearing a Chanel dress at last year’s fashion event “Met Gala”. In South Korea, fashion influencers like actress Jung Ryeo-won and singer Kang Min-kyung often wear vintage luxury items on broadcasts or post pictures of themselves adorned in such goods on Instagram. The Chanel dress worn by Jennie at last year’s “Met Gala” continues to spark conversations, as it was inspired by a design from the 1990s and has come to symbolize “vintage dresses.” Jennie is recognized for her chic pairing of vintage luxury goods from brands like Chanel and Dior. Even in Japan, where the vintage luxury market is more vibrant than in Korea, shops frequently advertise with phrases like “Jenny’s favorite place” and “Jenny’s favorite vintage shop.”
How long will the “boom” of vintage luxury goods last?
Contrary to predictions that the trend would only be a fleeting fashion moment, the vintage luxury craze has expanded from high-end brands like Hermès, Chanel, and Dior to more affordable mass brands like Prada, Miu Miu, Celine, Coach, and Longchamp, indicating a rapid trend growth.
University student Park Yu-na (24) expressed her intention to purchase nylon bags from Prada and Longchamp on a second-hand website, noting, “It’s trendy to buy old luxury bags and repurpose them as dolls, keychains, etc. A nylon shoulder bag from a local brand costs over 100,000 won, but if you’re fortunate, you might find a Longchamp bag for a similar price, and if you spend more, you can acquire a well-maintained Prada for about 300,000 won.” According to consulting firm Bain & Company, the global second-hand luxury market reached 45 billion euros (approximately 65 trillion won) last year, reflecting a 125% growth in six years compared to 2017. In contrast, the luxury goods sector grew by only 43% during the same period, demonstrating the rapid growth of the second-hand market.
Photo = Hankyung DB of shelves at a second-hand luxury goods store. The Boston Consulting Group has projected that the growth rate of the second-hand luxury goods market will continue at 20-30% annually, with the MZ generation driving consumption in the second-hand market. According to the Boston Consulting Group, 35% of Generation Z have bought second-hand luxury items, with 26% opting to rent luxury goods. The report emphasized that “luxury brands must enhance Generation Z’s loyalty by accurately understanding their characteristics.”
The enthusiasm of the MZ generation for vintage luxury goods may also stem from practical considerations. Students and recent entrants into the workforce typically have limited purchasing power. As a result, they emphasize rational consumption and seek out quality products at lower prices. Additionally, perceptions of second-hand goods have evolved. For the MZ generation, second-hand transactions are no longer viewed merely as utilizing someone else’s old belongings but as a “thrilling venture to discover desired items” and a way to showcase personal style.
Major companies are also entering the second-hand luxury goods market.
The second-hand luxury market was previously led by individual vintage shops, second-hand stores near luxury boutiques, and pawn shops. However, large companies have begun to step in more recently as this market continues to flourish with younger generations.
Naver’s resale platform “KREAM” is enhancing its footprint within the second-hand luxury market. A notable example is the acquisition of “Fab,” which runs the second-hand luxury goods platform “Chic,” to broaden its operations. The platform has also acquired North American second-hand trading site “Poshmark” and Japan’s “Soda,” while actively investing in second-hand trading platforms in Spain and Thailand. Lotte Shopping entered the second-hand arena by participating as a financial investor (FI) in the private equity fund that acquired Joongongara in 2021. Shinsegae Group has invested in Lightning Market through the venture capital firm Signite Partners. The Hyundai Department Store operates a sneaker resale platform, BGZT LAB, at the Hyundai Seoul Hotel. Photo = Hankyung DB.
Some luxury companies also embrace the growth of the second-hand market, viewing it as an opportunity. Kering, the parent company of Gucci, along with Burberry and Stella McCartney, have initiated collaborations to buy back and resell their products to customers or send them directly to alternative second-hand trading platforms. Since 2020, Kering has partnered with the second-hand luxury goods platform The Real Real to sell Gucci items online. Kering, Burberry, and Stella McCartney are also involved in authentication initiatives to verify the authenticity of products they release on second-hand luxury platforms. This approach aims to distribute their products through various channels, expand their customer base, and ultimately increase profits. In certain instances, upcycled products that reinterpret vintage items are being released. For example, PATOU, a luxury brand under the LVMH Group, launched its first upcycling project, “Patou Upcycling Capsule Collection,” in Paris last May. This project collaborates with Kitesi Martin Studio, an upcycling jewelry brand founded by French designer Kitesi Martin, where Patou’s inventory items are adorned with fabric straps and metal decorations, cleverly reinterpreted in Kitesi Martin’s unique style, including T-shirts, vests, and hats. This forms a captivating collection.
Hankyung.com reporter An Huiyuan [email protected]
Posted on 2024.07.29 13:47
Edit 2024.07.29 14:30
[안혜원의 명품의세계] Episode 55
Generation MZ seeks out vintage luxury goods
The Vintage Luxury Craze Among Generation MZ
Idol star Blackpink’s Jennie has become synonymous with vintage luxury, showcasing brands like Chanel and Celine. The MZ generation (Millennials + Generation Z), especially those in their 20s and 30s, are increasingly drawn to vintage luxury goods, frequently rummaging through their parents’ closets in search of treasures like Prada, Coach, and Longchamp. This trend of appreciating and acquiring vintage luxury items is not just a nostalgic gesture; it’s a burgeoning movement within the luxury fashion industry.
Understanding the Vintage Luxury Trend
Today, it’s common to hear that second-hand luxury goods are flying off the shelves even faster than new products. According to a recent study, 35% of Generation Z have purchased second-hand luxury items, while 26% have opted for renting luxury items. This surge indicates a fundamental shift in purchasing behavior among young consumers, who are increasingly valuing sustainability and affordability.
How Does the MZ Generation Enjoy Old Luxuries?
- Online Resale Platforms: Searching “vintage luxury brand” results in countless listings on resale platforms showcasing items from the 1990s and early 2000s.
- Second-Hand Stores: Many venture to specialty stores in areas like Gangnam; these local shops often carry high-quality vintage luxury items at a premium.
- Social Media Influence: Fashion-forward individuals are now sharing their vintage finds on platforms like Instagram and TikTok.
Popular vintage luxury goods can sometimes retail between 700,000 to 1,000,000 won, especially for items from renowned brands like Chanel, Prada, and Coach. Young consumers, often limited by budgets, appreciate the concept of buying second-hand as a form of rational consumption.
The Impact of Celebrity Influence
Generation MZ is heavily influenced by celebrities. Stars like Blackpink’s Jennie and BTS’s RM often sport vintage luxury items, prompting fans to follow suit. For instance, Jenna’s Chanel dress worn at the Met Gala continues to attract attention as a quintessential example of vintage luxury.
Case Study: Jennie and Vintage Fashion
Jennie from Blackpink has been a significant influencer in showcasing vintage luxury fashion trends. She has been spotted wearing vintage Chanel pieces, which have spurred her fans and followers to seek out similar vintage items. The iconic designs from the 90s that she embraces are celebrated in modern fashion circles, impacting purchasing decisions among Generation MZ.
Future Trends: How Long Will the Vintage Boom Last?
Experts argue that the vintage luxury trend is not just a fleeting phase. As brands like Hermès, Chanel, and Dior receive newfound attention from consumers, there is an expanding market for lower-priced mass brands like Coach and Longchamp. According to Bain & Company, the global second-hand luxury goods market reached €45 billion (approximately 65 trillion won) last year, showcasing a staggering growth of 125% since 2017.
Benefits of Investing in Vintage Luxury
- Cost-Effectiveness: Consumers can acquire high-quality items at lower prices.
- Sustainability: Supports eco-friendly practices by extending the lifecycle of luxury goods.
- Unique Style: Vintage items allow for a distinctive fashion statement that sets individuals apart.
Companies Embracing the Vintage Luxury Market
With the rise of second-hand luxury items, major retailers are beginning to take notice. Naver’s resale platform, KREAM, and various other companies are entering this growing market. For instance, Lotte Shopping has engaged in partnerships to strengthen its standing in the resale space, while luxury brands like Gucci and Burberry are collaborating with second-hand platforms to authenticate and resell their products.
Market Forecast and Growth
The Boston Consulting Group estimates that the second-hand luxury market will continue to grow by 20-30% annually. This prediction rests on the understanding that millennials and Gen Z are likely to consume in a manner that aligns with their values of sustainability and affordability.
Practical Tips for Finding Vintage Luxury Goods
- Research: Familiarize yourself with brand history and specific product lines that you’re interested in.
- Visit Second-Hand Stores: Explore local shops known for carrying vintage luxury items; don’t shy away from asking staff for recommendations.
- Follow Influencers: Use social media to discover trends and platforms where vintage luxury items are being showcased and sold.
Conclusion and Reflection
The vintage luxury goods market is flourishing, supported by cultural influences and changes in consumer behavior. The MZ generation’s enthusiasm for these prized items doesn’t just reflect a fashion statement but symbolizes an evolving relationship with fashion itself. With the growing acceptance of second-hand goods, it appears that the vintage luxury trend is here to stay.
