GCC pre-owned luxury goods market value is expected to reach USD 1,610.9 Million by the end of 2024 from USD 884.7 Million in 2018. Furthermore, strong consumption of luxury goods in countries such as UAE and Dubai are opening new avenues for pre-owned luxury goods market in GCC region. Middle East consumers have the highest per capita spending on luxury goods in the world and are open to spend on pre-owned luxury goods due high costs of rents and education, added to the uncertainty in the job market. Pre-owned luxury start-ups are doing great in this region and are expecting a strong market growth in region in upcoming years. Consumers in this region are fond of high-end products and are willing to spend on such luxury items. The availability of luxury goods at great discounted price and easy purchasing methods (online stores and buy in instalment plans) are key factors which are attracting consumers in GCC regions.
Growth Drivers – Pre-owned Luxury Goods Market
Rising Disposable Income
According to GCC statistical center, Saudi Arabia captured around 57.7% of the disposable income in GCC and is followed by United Arab Emirates with a percentage of 28.5. Further, with this rising disposable income in the region, the population is shifting towards the pre-owned luxury goods. Also, the consumers across the regions are adopting secondhand luxury goods in order to improvise and maintain their lifestyle. Moreover, consumers are adopting secondhand goods in order to cut their expenses on purchase of luxury items and expensive goods. This factor is expected to positively impact the growth of pre-owned luxury goods market in the upcoming years.
Affordable High-End Fashion
Pre-owned luxury goods are ideal choice for the high-end fashion as they offer luxury goods at lesser price. Further, the high costs of rents and education are adding uncertainty to the job market, these are the major reasons, which makes consumers to save money and reduce their frequency of purchases. In addition to this, also the United Arab Emirates is one of the most attractive countries in the Middle East region for the luxury brands, which makes it a strategic center for companies to enter into the regional market.
Major Advantages in GCC
The top countries in the Gulf Cooperation Council such as UAE, Qatar, Saudi Arabia and Kuwait are exceptionally dynamic markets which are offering high growth potential in the pre-owned luxury goods market. The visitors to Dubai and Abu Dhabi are attracted by luxury boutiques, iconic shopping malls & high-end hotels. In addition to this, the iconic luxury brands are retaining their leading position in the UAE to attract the residents and tourists. Further, these factors are expected to likely impact the growth of the pre-owned luxury goods market.
Barriers – Pre-owned Luxury Goods Market
Pre-Owned Authenticity Concern
Authenticity is especially crucial in the context of second-hand luxury goods market as the risk a consumer perceives in terms of authenticity is increasing. Further, the fear of inauthenticity is increasing in the customer to customer markets, which is believed to hamper the growth of the pre-owned luxury goods market.
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Market Trends – Pre-owned Luxury Goods Market
Online Sales Channel
Increasing sales platforms are boosting the value of second-hand luxury items. It’s a lucrative market where luxury brands such as Chanel bags, Rolex watches and other such products can be found at amazing prices. As a result, it is not surprising to see shopping habits for pre-owned luxury goods moving away from traditional channels to online channels and especially in the emerging countries where there is fluid infrastructure development and sharp consumer price sensitivity. In addition to this, the purchase of a second-hand luxury item from online sales channel offers value for money and makes fashion & accessories that are trending, accessible and affordable.
GCC pre-owned luxury goods product type market is segmented into clothing, footwear, bags, jewelry & watches and accessories. Among this segment, the bags segment is expected to capture a market share of 64.2% in 2018. GCC pre-owned luxury goods market for bags segment was totaled at USD 568.0 Million in 2018 and is projected to reach USD 996.4 Million in 2024 at a CAGR of 10.2% from 2019 to 2024. Luxury bag brands such as Burberry and Hermes are very popular among GCC consumers and growing availability of pre-owned luxury bags in region will attract mass of potential consumers in upcoming years. New luxury bags can cost a great amount of money (sometimes as much as 8,000 dollars) and consumers with limited spending budget are preferring to use euphemisms like pre-owned luxury goods including luxury bags.
In the distribution channel segment, GCC pre-owned luxury goods market is further sub-segmented into online stores and offline stores. Among this segment, offline stores segment is expected to grow at a CAGR of 7.9% over the forecast period. GCC pre-owned luxury goods market for offline stores segment is expected to reach USD 719.6 Million by the end of 2024 from USD 465.0 Million in 2018. In addition to this, GCC pre-owned luxury goods market for online stores segment value is projected to witness a Y-O-Y growth of 9.7% in 2024. Presence of number of offline stores in GCC regions such as Bagatelle Boutique, OMG Fancy that and others are generating the millions of dollars every year. However, the segment is expected not to perform very well in coming years owing to increasing dominance of online stores in pre-owned luxury goods market in GCC region.
The report also covers detailed competitive analysis of major market players of GCC pre-owned luxury goods market, such as The Luxury Closet, Inc., The Closet, INSELLER, Bagatelle Boutique, Seconds Used Items, Garderobe, Timepiece360, So Chic Boutique, FENDI, Luxury Souq and others prominent players. GCC pre-owned luxury goods market is witnessing a wide range of industry activities such as strategic development, expansion, acquisition, agreement, and partnership across the globe. For instance, on 12th December 2016, The Luxury Closet, Inc. launched its app to complement its existing e-commerce platform. This app seamlessly links the customer to the main site. This strategic development helped the company to strengthen its position in the pre-owned luxury goods market.
By Product Type:
- Jewelry & Watches
By Distribution Channel:
- Online Stores
- Offline Stores
The report profiles various major market players such as
- The Luxury Closet, Inc.
- THE CLOSET
- Bagatelle Boutique
- Seconds Used Items
- So Chic Boutique
- Luxury Souq
- Other Major & Niche Players
Competitive landscape analysis provides detailed strategic analysis of the company’s business and performance such as financial information, revenue breakup by segment, SWOT Analysis, key facts, company overview, business strategy, key product offerings, marketing and distribution strategies, new product development, recent news (acquisition, expansion, technology development, research & development and other market activities).
The study also provides company’s positioning and market share in GCC pre-owned luxury goods market.
Timeline Considered for Analysis:
- 2018: Base Year
- 2019: Estimated Year
- 2019 to 2024: Forecast Period
Research Scope and Deliverables
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes GCC pre-owned luxury goods market by the following segments:
- Product Type
- Distribution Channel
Customization: We also offers customization’s in the industry report as per the company’s specific needs.
Key Questions Answered in GCC Pre-owned Luxury Goods Industry Report
- What is the overall market size in 2018? What will be the market growth during the forecast period i.e. 2019-2024?
- What are the factors driving the growth of the market?
- Which sub-market will make the most significant contribution to the market?
- What are the market opportunities for existing and entry-level players?
- What are various long-term and short-term strategies adopted by the market players?