How luxury brands' stiffest competition is coming from secondhand online resellers like The RealReal and Fashionphile, driven by Gen Z and millennial consumers
Carol Ryan / Wall Street Journal : X: @contrariancurse , @michaelmiraflor , and @buccocapital X: @contrariancurse : A cool thing about high luxury goods is that TCO decreases at the very highest end (ignoring opportunity cost) A Michael Kors bag is worthless in 5 years, a Birkin appreciates 4-5% You can effectively own a Ferrari, Rolex, Birkin, sell it 5 years later and likely have no outlay Michael J. Miraflor / @michaelmiraflor : +1. Young people are not buying new luxury stuff because 1) they don't have that disposable income (yet) and 2) they recognize that newer stuff isn't as well-made or crafted vs 2nd hand items from the same brands, which are also cheaper. Even when they do eventually achieve @buccocapital : Interesting article in WSJ about how the secondhand market is providing intense competition for luxury brands Gen Z still loves luxury, they are just buying it used Was surprised to see $REAL is a ten-bagger off the lows. Never seen it discussed [image]