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Wholesale Blog

The Business of Resale & the Impact of Pricing: Quarterly Report

We are in the midst of a major shift in the resale and retail industry. Retailers and consumers alike are feeling the immediate impact of the pandemic, global events and economic changes. As more retailers get into the resale industry and as brands increase prices multiple times a year, resellers are seeing a more fluid and competitive market. We hope this quarterly report provides you with actionable insight on how to navigate and grow your business as we grow this resale industry together. – Emily Erkel, LePrix Co-Founder & CMO

Mary Zubritsky

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If you’ve been following us on LePrix’s Wholesale blog, you already know how passionate we are about covering some of the most relevant topics related to the designer resale industry. From logistics issues to authentication and the never-ending price increases, it seems like we’re always jumping over hurdles in the name of pre-owned Louis Vuitton, Gucci and Chanel, and today we’d like to dissect one of our least favorite topics – price increases.

Throughout the pandemic, luxury brands took advantage of the surging demand for high-end designer items and searched for ways to control their branding, ensure exclusivity, and try to manage pricing and availability of their goods on the resale market — therefore price increases and purchase limitations have occurred.

What does that mean for your business? While this means the value of your pre-owned designer items may be increasing, there will undoubtedly be more price increases in the future. The key is to be strategic and stock up on the best-selling styles now before the brands raise prices again on the same or similar styles.

Our team has been measuring the pricing changes by the brands and the immediate impact on the resale industry by style and condition as well as what’s trending and consumer demand.

Here is what we’ve learned:

Resale Pricing Follows Retail Pricing

While we know you may be hesitant to raise prices because you’re afraid you’ll drive customers away, in order to make quotas and remain competitive, we strongly suggest you do. With inflation top of mind, an increase in transportation costs, and a decrease in manufacturing, you need to be properly compensated for your products, time and effort, and it’s imperative you keep up with the industry pricing trends. Your competitors are also raising prices as well. That means once brands like Chanel, Louis Vuitton, Dior and more raise their prices, you need to raise yours too. To learn more about pricing trends, read about Chanel’s most recent price hike, Louis Vuitton’s price increase, and find out how to price your pre-owned items.

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Vintage Can Demand Higher Pricing

It’s not just about the price increase on brand new items. This is also related to vintage designer pieces that are in high demand. Many aficionados claim the quality of Chanel bags has decreased dramatically since the early 2000s, and we can see why this may be true and cause shoppers to consider vintage Chanel. Some vintage Chanel bags were made of even better-quality materials than today, with real 24K gold plated hardware on many bags produced before 2008. Nowadays it’s just gold-tone hardware. Plus, sometimes on today’s bags the stitching is uneven and the lambskin is dented.

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Your customers have come to expect the higher quality of vintage items and they’re aware of the price increases and inflation issues of the past year, and therefore they’re expecting to pay more for the pre-owned designer goods you’re selling. After all, everyone is aware of the high prices of gas, the logistics issues, and the increased prices of materials and decreased labor spurred by the Pandemic. Do yourself and your business a huge favor and raise your prices appropriately.

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If you’re still unsure about diving headfirst into the luxury resale market, according to Jeanette Oh, our Director of Account Management with over 10 years in the industry, start with the core pieces from some of the most instantly recognizable brands like Louis Vuitton, Gucci and Prada. So, what are these core pieces? We’re talking about the basics, which are a guaranteed sale, always in demand and your best bet. And once you establish a stronger customer base, absolutely reach for Chanel and Hermès.

Pieces like the Louis Vuitton Neverfull MM, the Speedy 30-35, Gucci GG Supreme Messenger bag, a Prada nylon backpack, or the Chanel Grand Shopping Tote. For Louis Vuitton and Gucci, choose monograms at first and then branch out as you grow your customer base.

Small leather goods, like a Gucci or Prada wallet, are luxury gateway pieces. But don’t focus exclusively on small leather goods — just think of them as an investment to hook an aspirational customer. Variety is key so also sprinkle in some Chanel card cases, designer necklaces, and coin purses too.

If you’ve yet to establish yourself as a luxury reseller, people will question the authenticity of your items, so don’t forget the Certificates of Authenticity to build trust and confidence.

Classics for 2022

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Even though it’s 2022, the classics are still topping our charts, with bags like the Louis Vuitton Neverfull, the Chanel Classic Flap Bag, the Gucci Jackie, the Hermes Kelly and Birkin bags, the Louis Vuitton Speedy, Prada Re-Edition Bags, the Chanel Diana, and the Gucci Marmont collection taking top spots for our wholesale and auction businesses.

So, why is there such a demand for these classics? Scarcity and the exclusivity factor. As time moves on, the timeless classics become less accessible which means they’re in higher demand.

Trends for 2022

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Late 90s bags have been trending for some time now with the revival of logomania, the Fendi Baguette, and Prada’s Re-Nylon collection, and while top designers have reimagined and reissued many of these designs, customers are still craving the vintage versions and that’s great news for your store.

And even though it’s no surprise vintage and pre-owned luxury pieces are in high demand these days, what may please you is how much the hottest trends from yesterday and yesteryear have made a comeback on the resale market. From the slouchy silhouettes of hobo bags to the oversized bags Mary-Kate and Ashley Olsen were sporting in the early aughts, to bucket bags, designers like Miu Miu, Prada and Fendi took their inspiration from the past and it’s a blast.

From fringe to bright colors, and crochet to heavy metal embellishments, these are the top handbag trends we think you need to keep your eyes on for 2022.

  • Crescent-shaped and slouchy
  • Oversized and spacious
  • Vintage revival
  • Bold and brilliant
  • Heavy-duty hardware
  • Feather and fringe
  • Bucket bags
  • Crochet, wicket and raffia

For a deeper dive on trends and bestsellers, check out our 2021 Resale Recap: The Bestselling Brands and Styles

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Want to know more about the top sellers for 2021 and our predictions for 2022? We analyzed how retailers were sourcing on LePrix Wholesale to meet their customer’s demands and discovered some surprising trends and behaviors that drove 2021’s designer resale wins and losses.

Read our 2021 Resale Recap to find out the top-selling brands and styles in the luxury resale industry from 2021 and beyond. Plus, discover our latest launch of clothing. As you may have heard, this month we announced the launch of our pre-owned designer luxury clothing. Discover vintage Chanel tweed jackets, Dior monogram tops, Vivienne Westwood corsets and more. For more details, read the latest blog for more details.