Millennials propel rapid growth of the second-hand luxury goods market in the Middle East
Dubai, United Arab Emirates : The Middle East’s love for luxury is fuelling rapid growth in the second-hand luxury goods sector. Whilst the pandemic has resulted in reduced in-person shopping, online platforms have profited from a surge in demand from millennials keen to acquire high-end goods at affordable prices. Sabrina Sadiq, founder and CEO of Luxury Promise, a leading social commerce platform for the world’s most exclusive, rare and luxurious second-hand goods and accessories, said: “Our revenue increased fivefold this year due to more customers shopping online throughout the lockdowns.”
Traditionally, consumers from the Middle East region have preferred to shop for new goods however, this has changed due to younger, more environmentally conscious consumers looking for affordable high-end goods in prime condition. Following its launch in 2017 and with offices in Dubai and London, Luxury Promise successfully opened a flagship boutique in Mayfair, London and is growing its business in the GCC as it serves a 120,000 strong and growing global community. The platform is popular due to its reliability, community focus and authentication prowess.
“The luxury resale market is growing four times faster than the primary luxury market, and this is all driven by the appetite of consumers,” Ms Sadiq said. Sales growth at Luxury Promise has averaged over 35% month-on-month in the first quarter of this year. According to a report published by Bain & Company, the Dubai market for luxury goods sales was worth $3 billion (Dh11.97bn) last year, ranking the region as 20th on the world list for luxury goods sales. Globally, the personal luxury goods market is estimated to be worth around $374 billion by 2025.
“The Middle Eastern fashionistas I have met have some of the most fantastic and awe-inspiring collections of handbags” says Sabrina. “They are among the most educated global luxury clientele who know how to treasure their pieces. It makes sense to invest our time here, given the market has massive potential for Luxury Promise for selling / buying back some of these unique treasures.”
An eye for exceptional craftsmanship is where Luxury Promise excels. The business was born to connect clients globally through a shared love for high-end designer bags, accessories and clothing. Most websites selling pre-loved items offer only a consignment option, but Luxury Promise’s unique instant cash offering speaks to the global customer seeking seamless service.
Luxury Promise offers a convenient, reliable and efficient way that benefits both the seller and the client. Authenticity is of the utmost importance for Luxury Promise which uses well-trained human eyes and advanced AI technologies to inspect and authenticate each item with impeccable care and precision. The company boasts a wealth of experience in the luxury sector across its team – so customers can be comfortable in knowing that they’re receiving the highest level of quality service.
Luxury Promise is positioning itself to capitalise on the growth in this space. The firm has recently strengthened its leadership team in Dubai with the appointment of Sebastian Mitchell, formerly Chief Operating Officer at The Modist. The Luxury Promise advisory board comprises of leading executives and entrepreneurs Lloyd Amsdon, Co-founder of Watchfinder which sold to Richemont in 2018, Francois Delage, previously CEO of De Beers Jewellers and President of Louis Vuitton for Asia Pacific, Adam Sadiq, Co-founder of New World Group and Karen McCormick, CIO of Beringea who led the series A round last year.