The leading luxury e-commerce of pre-owned goods announces its Partnership with FARFETCH in the Launch of FARFETCH SECOND LIFE in the Middle East.
DUBAI October 6th, 2021: The Luxury Closet, championing resale Economy and Sustainability in the Luxury resale Marketplace Industry announces its partnership with FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry for the platforms Second Life service in the Middle East. Following FARFETCH Second Life’s successful launches in Europe and the United States, the program will now enable consumers in the United Arab Emirates, Kuwait, and Saudi Arabia to trade in their designer handbags for credit to be used towards future purchases on FARFETCH.
“Re-sale is the future of shopping. We expect one in six transactions to be pre-owned by the end of the decade. This marks a paradigm shift in consumer choice and the value chain of the fashion and retail industry. What we are excited about most is leading the industry to a more sustainable and environmentally friendly future.” said CEO and Founder of The Luxury Closet, Kunal Kapoor
Consumers are changing how they make purchase decisions on luxury. Ownership as a concept is changing its definition, and environmental impact is ranking higher and higher. In addition, Post Covid the Consumer is focused on everything sustainable, into minimizing the environmental impact and the value of reselling and reusing. An exciting example is Gucci, driving the resale train through recognizing the value of resale and their recent partnership with The RealReal.
Moreover, the pre-owned model is to become the fastest-growth sector in luxury, which now large groups are also adopting. For instance, Richemont acquired watchfinder.co.uk, a +$150M reseller (revenue) of men’s watches and Neiman Marcus acquired a minority stake in Fashionphile, a ~$200M reseller (revenue) of luxury handbags.
Also, another example is Burberry. They have announced a partnership with The RealReal and Ralph Lauren announced a partnership with Depop.
In addition, Lululemon is currently testing a resale program where shoppers can trade in gently used items for store credit.
The Luxury Closet has significant capabilities to deliver exceptional effect in this partnership with Farfetch. The Luxury Closet is the only company that operates the model at scale in the region with a team of over 200+ spread across 5 countries with the site attracting nearly 1 million users each month. Each month thousands of items from around the world arrive at the processing center in Dubai where there is a team of 20 authentication specialists inspecting each item before it goes online.