Second Hand Designer Shoes Market Outlook
The second hand designer shoes market is valued at US$ 455.5 million as of 2023. It is expected to grow at a CAGR of 7.6% during the forecast period and is anticipated to be valued at US$ 947.7 million by 2033.
Collection of the latest styles of shoes, coupled with meager cost and many other factors, are expected to increase the demand for second-hand designer shoes during the forecast period.
The global market has been fulfilling people’s desire to remain in tune with the latest trends in the footwear market. These are one of the most preferred second-hand designer accessories.
Moreover, while looking for second-hand designer shoes, there is also the fun of thrift shopping, which offers unlimited options to explore. It allows us to explore certain types of shoes which are hard to find in a normal store. It is expected to increase the sales of second-hand designer shoes.
Furthermore, reusing second-hand designer shoes also ensures that we use them to their fullest capacity. It ultimately ensures we adopt the Reduce, Reuse, and Recycle strategy. It means reducing unnecessary expenditure, reusing second-hand designer shoes, and making recycling easier by reducing redundant landfills.
Apart from that, if we visit a brick-and-mortar store to buy second-hand designer shoes, people usually come hoping to get a deal. Unlike the new designer shoes, which come with a fixed price, buying second-hand designer shoes would give us leeway to bargain a bit more on the low price that the store owner has fixed. It is further expected to surge the demand for second-hand designer shoes.
What Makes the second hand designer shoes market Robust?
Saving the environment: A lot is taken into account while manufacturing a brand-new designer shoe. Apart from labor, using non-renewable energy and natural resources ensures that the final material is manufactured based on the specifications.
When such designer shoes are manufactured on a large scale basis, it is estimated to lead to the depletion of resources hastily. The usage of second-hand designer shoes not only reduces the consumption of such natural resources and reduces pollution because of reduced industrial activity. It is something that supports the idea of sustainable development.
Getting high-quality products for a low price: If we talk about the important driver of the market, it has to be low cost.
In many cases, second-hand shoes cost as little as one-fourth or even less than the prices of new designer shoes. It is expected to increase the sales of second-hand designer shoes.
Avoiding unethical practices adopted by manufacturers: Certain designer shoe manufacturers would unfairly charge higher amounts for the shoes they sell. It is done by satiating a market looking for good quality designer shoes. It is something that is against human rights.
In a way, second-hand designer shoe retailers help build a fairer world by charging prices that should have been the original price in many cases.
Great opportunity for local businesses: One of the underrated yet significant benefits offered by the second hand designer shoes market is that these support local business establishments.
It is useful, especially for developing economies like India, China, etc., because the authorities in this region are supporting the cause of setting up local businesses. It would certainly surge the demand for second-hand designer shoes.
No packaging: Usually, when we buy a new pair of designer shoes, it has some cardboard packaging.
However, if we buy second-hand designer shoes, the retailers do not indulge in such packaging. It reduces waste accumulation in the area. Society at large is estimated to support such initiatives.
The emergence of online stores: In the technology-driven era, we can purchase second-hand designer shoes through online mode as well. The online mode has increased the customer baseline because of its reach and rapid internet penetration. It might increase the sales of second-hand designer shoes.
What are the Restraints Faced by Second Hand Designer Shoes Market?
No warranty on products: Somewhere down the line, there are times when we have to trade-off between cost and warranty.
Unfortunately, the market presents this challenge in front of us. People who purchase second-hand designer shoes from such marketplaces do not have the option to avail warranty.
The shoes might be damaged: One of the significant frequent issues customers face while purchasing from such stores is receiving damaged products. Moreover, many stores also do not provide replacements for these designer shoes. It might hamper the demand for second-hand designer shoes.
Time-consuming process: Whenever we buy a pair of brand-new designer shoes, it is just a matter of liking the brand and the quality.
However, if we make such a purchase from the market, we become extra careful. The reason being these shoes have already been used by someone else. So, before making the final purchase, we need to carry out a complete inspection from our side, which is a time-consuming process.
Risk of developing infection: There is a high probability that the second-hand designer shoe retailer might not have taken proper care of these shoes after it was sold to him.
Consequently, when someone has purchased the same pair of shoes from the retailer, the buyer, after some days, might develop issues relating to feet fungi. It might hamper the sales of second-hand designer shoes going forward.
Working against status symbol: We are at times when people love to be associated with blue blood. For this reason, certain sections of people are also estimated going to invest high amounts.
Thus, buying second-hand designer shoes is something that serves against the very idea of a status symbol. It may hurt the image of the second hand designer shoes market.
The rise of E-Commerce Giants might disrupt the Second Hand Designer Shoes Market.
E-Commerce has become synonymous with almost everything in the current times. Be it low-involvement or high-involvement products, E-Commerce has disrupted the concept of market space.
Certain E-Commerce giants like Amazon, Alibaba, Flipkart, Etsy, etc., provide top-notch products. The main reason E-Commerce is looked up to in the current times is the discount they provide.
If we talk in the context of designer shoes, such shoes are available in huge quantities in these stores. These shoes are sold for at least a 20% discount, and these are properly branded unused designer shoes.
However, during certain events like big billion-day sale, Diwali Sale, and Dussehra sale, they offer discounts up to as high as 70%, which makes E-Commerce a lucrative market, and instead of visiting the second hand designer shoes market, the customers might purchase the original brand at a discounted price. It might reduce the demand for second-hand designer shoes big time.
Segment Wise Insights
Women’s Segment Leading the Way
The women’s segment had a market share of around 48.5%. Increasing interest in designer and branded designer shoes amongst women is also expected to drive the market during the forecast period. However, if we talk about the fast-growing segment, it is the men’s segment, with an expected CAGR of almost 5.7% during the forecast period.
Celebrity endorsements are driving the men’s segment rapidly, and they are estimated going to buy second-hand designer shoes. It might as well increase the sales of second-hand designer shoes.
Offline Channel to Have a Greater Chunk of Market Share
Despite the penetration of the internet and the growth of certain online stores, the offline segment has dominated, with a market share of about 71.4%.
The reason is, as far as second-hand designer shoes are concerned, these are something that customers would personally want to assess and then buy, as there are chances of irregularities. So, the concept of touch and feel drives the offline channel in the global market.
The North American second hand designer shoes market had a share of 13.2%; during the forecast period, it is expected to be a stable market.
People in this region usually have a higher disposable income. So, they can afford to buy the original pair of designer shoes itself. Apart from that, there are a lot of designer shoe manufacturers who are based in this region. So, people do not have to pay for the import duty, as a result of which the cost of the original designer shoes is quite less in this region.
The European second hand designer shoes market had a share of 18.6%, and during the forecast period, it is expected to grow at a decent rate.
Like North America, people in Europe also have a higher disposable income. But, owing to environmental consciousness, people in this region also do not mind spending on second-hand designer shoes. The reason is the usage of such shoes supports the idea of sustainable development, and the usage of such shoes also prevents unnecessary exploitation of resources.
Asia Pacific region is expected to be the fast-growing market, and during the forecast period, it might become the larger second hand designer shoes market.
The disposable income of people in this region is quite less than in many other regions. Moreover, an increasing Western influence in the region is expected to drive the market. Apart from that, the rapid penetration of the internet has made it even easier for people to buy second-hand designer shoes through online mode. It is anticipated to increase market share in the region.
Start-Up Ecosystem
The start-ups operating in the global market are trying to expand their presence through online mode. Some of the notable start-ups are:
StockX: StockX was founded in 2015. It is an online marketplace and auction platform to buy and sell used fashion products. The buyers make the ‘bids’ and sellers ‘ask’ to sell on the marketplace.
Goat: Goat was founded in 2015. It is an online P2P platform to buy and sell shoes. It offers different varieties and colors for men and women. It also offers apparel and accessories.
Competitive Landscape
The key market players operating in the market are taking initiatives from their side to make their interface user-friendly. For this, they are launching features allowing buyers to make an offer on any listing at the click of a button. It is estimated to help buyers get the best deals by enabling an easier, quicker, and more accessible negotiation process.
Some of the recent developments are:
· In May 2022, Depop partnered with EcoEnclose to bring its US sellers more sustainable packaging solutions.
· In March 2022, Tradesy was acquired by Vestiaire Collective SA, a global online pre-owned fashion marketplace headquartered in Paris.
With cutthroat competition in the second hand designer shoes market
Depop is a peer-to-peer social E-Commerce company, which is based in London. It was originally started as a social network where people could buy items featured in a magazine. After realizing that they needed a selling function, Depop evolved into an E-Commerce firm.
Kruti Patel Goyal has been appointed the Chief Executive Officer and is estimated to take over the charge from 12th September’22. She is known for her deep expertise in marketplace dynamics, having held various leadership roles at Etsy.
Zulily is a well-known brand, serving this niche since 2009. It holds no inventory. Instead, it consolidates shipments of vendor-owned merchandise at its fulfillment centers or sends them directly to its customers. It also possesses a ‘large heart’ as it gives discounts daily.
In January 2022, Zulily launched the best time to Shop report as a roadmap to maximize savings for savvy moms. In the current times, when there are challenges in supply chain management, shopping to find the best selection of items is not an easy task. It is only to make the task simpler that Zulily had launched the report.
Vestiaire Collective is another platform that has simplified the concept of buying, selling, and sharing. Thanks to its user-friendly mode of operation. It also has the reputation of being the leading online marketplace for pre-owned luxury fashion.
The best thing associated with Vestiaire Collective is that once the item clears the quality control, only then is estimated to it be shipped.
In June 2022, Vestiaire Collective launched a localized service in South Korea. This launch is estimated to give the South Korean community access to 5 million items, with 25000 new pieces added daily, and allow South Korean sellers to access the overseas market.
These insights are based on a report on Second Hand Designer Shoes Marketby Future Market Insights.