As secondhand luxurious soars, authentication turns into a brand new gold customary

As the worldwide marketplace for secondhand luxurious gadgets surges, authentication has change into the defining issue separating credible platforms from the remaining.

The resale marketplace for trend and luxurious gadgets is increasing at an annual charge of 10%, 3 times sooner than the firsthand market, in line with a report launched Oct. 9 by Boston Consulting Group and luxurious resale platform Vestiaire Collective.

The report tasks the worldwide resale market might attain as much as $360 billion by 2030, from about $210 billion right this moment.

With extra consumers shopping for pre-owned designer manufacturers, belief has change into paramount. “As counterfeit manufacturing turns into more and more refined, even luxurious manufacturers themselves typically fail to detect fakes, in some instances, unknowingly repairing counterfeit gadgets,” mentioned Jaewha Choi, CEO of South Korean on-line market Bunjang.

Horror tales abound on-line of individuals paying hundreds for faux Hermès baggage or a Rolex Oyster Perpetual watches with swapped components. Some counterfeits are so convincing they’re dubbed “superfakes,” reportedly made with supplies from the identical leather-based suppliers as the unique manufacturers.

Nonetheless, because the resale market expands, authentication has change into a rising concern. The secondhand business has lengthy operated beneath the rule of “caveat emptor,” or purchaser beware.

To counter more and more real looking “superfakes,” resale platforms are pouring sources into verification. Singapore-based on-line market Carousell opened its first brick-and-mortar retailer for luxurious gadgets in downtown Singapore this yr, permitting sellers to have their gadgets graded by one of many firm’s appraisers earlier than itemizing them for resale.

The verification crew inspects not solely the fabric of a bag but additionally particulars like stitching and stamping, Tresor Tan, Director of Gross sales, Advertising and marketing and Consumer Relations at Carousell Luxurious, instructed CNBC.

“On the finish of the day, it is our fame at stake as nicely,” Tan mentioned. “And due to that confidence, we additionally supply our consumers a money-back assure on authenticity.”

The corporate has constructed a proprietary database protecting virtually 500 product types, and higher-valued gadgets undergo a number of checks. In instances the place the authenticity is doubtful, the gadgets won’t be listed, Tan mentioned.

South Korea’s Bunjang has additionally adopted in the identical vein, growing its personal proprietary authentication system that mixes conventional visible inspections with scientific gear and synthetic intelligence “skilled on tons of of hundreds of knowledge factors,” Choi instructed CNBC.

Bunjang claims a 99.9% authentication accuracy charge in figuring out real items, and its verification system can repeatedly be taught and adapt to counterfeiting strategies by leveraging AI.

Each Carousell and Bunjang mentioned verification has boosted enterprise.

Bunjang mentioned luxurious items now make up greater than 1 / 4 of its platform’s $1.1 billion in annual gross merchandise worth. Transactions and complete worth for luxurious items rose 30% yr on yr within the first half of 2025, Choi mentioned.

Carousell’s Tan didn’t disclose particular figures however mentioned the posh phase has seen “very robust curiosity” and has recorded “nice development.”

This development that started with Carousell’s 2012 launch as an internet platform finally led to the opening of its first bodily retailer.

“When somebody is shopping for and promoting a $100,000 watch on the platform, it undoubtedly catches our consideration,” she mentioned, saying that customers needed Carousell’s oversight in high-value transactions.

Together with its verification course of, the shop additionally provides a money-back assure for its merchandise. Tan mentioned that whereas costs could not all the time be the bottom out there, the shop goals to supply “truthful worth.”

“We could also be, say, $200 dearer than what another person is providing, however [consumers] will nonetheless in the end weigh the completely different choices for $200 financial savings,” she mentioned. “Am I higher off with a little bit of assurance?”

Affordability is the highest cause for getting secondhand luxurious gadgets, cited by 80% of respondents, in line with BCG’s report.

But it surely’s not nearly saving cash. Consumers are more and more drawn to uncommon or discontinued collections which are now not available in shops, Samantha Virk, Chief Advertising and marketing Officer and U.S. CEO of Vestiaire Collective, instructed CNBC.

“These motivations are getting stronger throughout the board as in comparison with surveys in earlier years, displaying that secondhand buying is turning into a deeply ingrained a part of how individuals interact with trend right this moment,” Virk mentioned.

Youthful consumers, with their restricted spending energy, desire to purchase, get pleasure from and shortly resell gadgets, Bunjang’s Choi mentioned.

“This outstanding development displays a elementary shift in how Millennials and Gen Z, the subsequent wave of luxurious shoppers, understand and interact with luxurious items.”