Selling second-hand luxury: Empowerment and enactment of social roles

TL;DR: In this article, the authors examined the meanings and values attached to the process of selling luxury goods and found that consumers who sold used luxury items enabled a perceived higher social status and for others it contributed to the boosting of their role as a sustainable consumer.

About: This article is published in Journal of Business Research.The article was published on 2020-08-01 and is currently open access. It has received 49 citations till now.

Summary

Introduction

• Consumption of luxury goods is morphing into a diverse proposition where consumers are actively adopting new roles: besides buyers and users, they are sometimes becoming sellers of luxury branded products.
• This paper examines meanings and values attached to the process of selling luxury goods.
• Secondly, consumers who sell luxury items engender change in their social role.
• The more attractive and efficient the second-hand market becomes, the more it plays a role and affects those who buy the brand-new luxury items (Chu & Liao, 2010; Liao & Chu, 2013).
• The research methodology and findings are presented in sections three and four.

2.1 Defining second-hand luxury

• Second-hand luxury is defined through the characteristics of the products transacted: second-hand luxury products are previously owned, generally used, luxury branded items (Turunen & LeipämaaLeskinen, 2015) that are sold on alternative – “secondary” – channels.
• Thus, the transactions often lack the experiential facets offered through conventional luxury channels (Cervellon & Vigreux, 2018).
• The price of those goods is usually lower than when purchased first-hand in the designated luxury boutiques (to the exception of certain limited editions and rare iconic models).
• Vintage products are testimonies of the past.
• Second-hand and vintage items do not necessarily attract the same profile of consumers: Cervellon et al. (2012) conclude that second-hand purchases relate to price-consciousness and frugality, and Kessous and Valette-Florence (2019) added that eco-friendliness, status-driven bargain-hunting and even social-climbing, might also be determinants of second-hand luxury purchases.

2.2 Perceived personal value of luxury consumption

• Scholars have examined luxury consumption through the lens of self-concept and self-extension theories (Belk, 1988).
• Hagtvedt and Patrick (2009) go further in defining a luxury brand as “one that has premium products, provides pleasure as a central benefit, and connects with consumers on an emotional level”.
• In addition, with second-hand consumption, the acquisition of the luxury goods may also drive emotional benefits related to treasure hunting (Turunen & Leipämaa-Leskinen, 2015; Amatulli et al., 2018), and the intrinsic pleasure of possessing a high quality product, purchased at a lower price (Cervellon et al., 2012).
• Based on the perceived switching cost, the consumer chooses a specific disposition method, such as selling it on.
• This suggests that disposing of luxury goods through selling is a meaningful process that has a personal resonance to the seller.

2.3. Perceived social value of luxury consumption

• Moving on from the personal value of luxury, the dominant theories explaining luxury consumption emphasize the perception made about luxury consumers in social settings.
• Based on Veblen’s theory, Bearden and Etzel’s (1982) research indicates that the conspicuous display of luxury goods infers status and wealth.
• Closely related, status consumption theories point to a “motivational process by which individuals strive to improve their social standing” (Eastman et al., 1999: 42) and implies the consumption of products that symbolize internal or external status.
• A large body of literature has investigated how consumers use luxury goods to signal status through bandwagon and snob consumption (see Kastanakis & Balabanis, 2014 for a review).
• Belk, Sherry and Wallendorf (1988: 466) suggest that the act of selling may contribute “to keep used goods within the same social class rather than passing them on to a lower or more needy, social class” through donations.

3. Methodology

• Women were recruited via Facebook buy and sell groups, second-hand platforms (when direct messaging was possible e.g. LeBonCoin and Vinted) and through personal relationships.
• Participants selected were reselling personal items that had not routinely been sourced initially for resale and had mainly been purchased for self-use.
• All women selected had sold or were selling second-hand luxury handbags on the second-hand market (online and in specialized boutiques), from Longchamp (entry-level luxury) to Hermès (high-end luxury).
• Interviews were taped and transcribed into English.
• Through analysis of the data, different themes emerged, were coded, recoded and grouped again (Belk et al., 2013).

4. Findings and discussion

• All their informants engaged in both luxury purchase and resell activities regularly.
• Yet, the focus of the analysis is the reselling activity of their respondents and the meaning they attach to selling luxury goods.
• On this basis, five themes emerged from the analysis and were grouped along two dimensions that demonstrate the underlying values of selling luxury goods: 1. the personal value of selling luxury: emotional detachment and financial empowerment; 2. the social value of selling luxury: Sellers’ enactment of their social role.
• The personal value of selling luxury: emotional detachment and financial empowerment.
• The personal value of purchasing and using luxury goods lies in the experience of the purchase in the prescribed luxury boutiques, in the hedonic, sensory and aesthetic pleasure of the good per se, and in the emotional connection with the possession (the souvenirs attached to a gift, the reward of a success for instance).

4.1.2 Divestment from emotional value

• Lee et al. (2015) report the emotional discomfort that might result from disposing of luxury goods, leading to relational switching costs.
• They were so used I could not wear them although I had loved them so much.
• Detachment is paramount for the transaction to evolve; objects selected for selling have to be devoid of emotional attachment by some means.
• I will never sell the necklace I received on my 20th birthday.
• She has already started building stories of transmission that transform luxury goods into identity markers and totems of family cohesion (Kessous et al., 2017).

4.1.3 Gaining financial empowerment

• Sellers might enter into a speculative process, purchasing limited editions to resell them with a substantial margin, often priced higher than the full price in the boutiques.
• Besides enabling monetary gain from the handbag transactions, consumers support their affluent lifestyle through the constant flow of buying and selling.
• B was thrilled about “playing against the system”.
• I like to get noticed, but rarely tell the truth to anyone.
• The perceived social value that sellers derive from the selling activity contributes to a new, emerging, unconventional luxury consumption phenomenon.

4.2.1 Reconfiguration of the social hierarchy between sellers and buyers

• For long, selling and purchasing second-hand goods was stigmatized: among the affluent, selling ones’ possessions was a signal of financial distress.
• Being considered as a luxury client by luxury brands confers status; being invited to private sales confers another form of prestige.
• In a similar vein, sellers fear being spotted as selling fakes.
• Sellers have a dominant position in the transaction; owning the object they paid full price for, brings the power to the negotiation room.
• For me, selling as well as buying luxury as a second-hand is way to be more sustainable and greener, because it extends the life of the products that are high quality.” (T, 20’s).

5. Conclusion and implications

• The authors findings demonstrate that selling luxury goods brings value to the sellers in a unique way, related to both the nature of the good and the nature of the activity.
• The development of second-hand luxury markets encourages the dichotomy between clients of luxury who purchase to live the luxury experience and consumers of luxury who purchase to display the material good.
• Three main theoretical conclusions can be outlined from their study.
• Again, the act of disposal through selling confers a prestige to the seller, in line with the Griskevicious et al. (2010) findings.
• In the beginning of October 2019, Burberry initiated a partnership with the consignment platform TheRealReal, in order to encourage a circular economy.

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Table 1. Interviewees

Frequently asked questions

Q1. What contributions have the authors mentioned in the paper "Selling second-hand luxury: empowerment and enactment of social roles" ?

This paper examines meanings and values attached to the process of selling luxury goods. 

Q2. What have the authors stated for future works in "Selling second-hand luxury: empowerment and enactment of social roles" ?

Theoretical contribution and future research Third, their research adds to the sustainable luxury literature ( Achabou & Dekhili, 2013 ; Turunen & Leipämaa-Leskinen, 2015, Kessous & Valette-Florence, 2019 ) by demonstrating additional motivations to the disposal of luxury goods ( Lee et al., 2015 ): besides extending the lifecycle of products, enacting the role of responsible citizens who purchase durable goods that last and have a re-sell value. Future research could delve deeper into this new value creation process that takes place on alternative markets such as second-hand or renting, in countries with different perspectives on luxury and sustainability, as well as in product categories that are more gender specific ( such as the watch sector ). In addition, with future research, the limitations of their study could be supplemented: Besides collecting larger data sets from multicultural contexts, both genders could be included in the data collection. 

Q3. What is the process of disposing through selling?

The process of disposing through selling entails erasing personal meaning and memories, toning down the emotional value, and evaluating in a rational way the economic value of the good. 

Q4. How many bags do people possess at the same time?

Truth is, The authorpossess at the same time only four bags, of which two is always ready to be sold and updated to new one.” (B, 20’s)Being involved in the luxury second-hand market requires an increasing level of knowledge about pricing, changing trends, brands, and iconic pieces. 

Q5. What are the two directions that have already been explored by luxury brands?

Two directions have already been explored by luxury brands: limiting the quantities of certain models on the market, limited editions being very often more expensive on the second-hand market than when purchased first-hand in the boutiques;limiting the products sold on private sales that very often end up on the second-hand market without being used, or putting a marker identifying the item as a private sales item. 

Q6. What is the purpose of the calculative B?

For instance, the calculative B is involved in the act of buying and selling for symbolic reasons and especially for status boost:“I like to always have the IT-bag, which means that The authorneed to surf on the wave all the time with buying and selling. 

Q7. What is the role of the seller in the negotiation room?

In the negotiation room, sellers-purchasers perform a social role game: sellers have the decision-making power (Dion & Borraz, 2019). 

Q8. What are the main reasons why luxury conglomerates are getting involved in the second-hand business?

Luxury conglomerates have started getting involved in the new second-hand business models: Richemont acquired Watchfinder in 2018 and many high-end jewelers such as Cartier have opened outlets specialized in the restauration of second-hand and vintage jewels. 

Q9. What are the main reasons for buying secondhand luxury goods?

In this sample, informants who were concerned about safeguarding their eco-friendly lifestyle without compromising on style and fashionability, were often both buyers and sellers of secondhand luxury goods. 

Q10. What are the main reasons for buying secondhand luxury goods?

In this sample, informants who were concerned about safeguarding their eco-friendly lifestyle without compromising on style and fashionability, were often both buyers and sellers of secondhand luxury goods. 

Q11. What does the author say about selling luxury goods?

I do not throw away; The authorsell.” (L, 30’s)Their findings demonstrate that selling luxury goods brings value to the sellers in a unique way, related to both the nature of the good and the nature of the activity. 

Q12. What does the author suggest that selling is a meaningful process?

This suggests that disposing of luxury goods through selling is a meaningful process that has a personal resonance to the seller. 

Q13. What is the meaning of selling luxury goods?

In the same vein, selling luxury goods with sustainability motives allows a way of being seen as a better consumer, a smarter consumer, and a greener consumer. 

Q14. What does Berthon et al. (2009) put forward?

Berthon et al. (2009) put forward this personal and experiential dimension of luxury, which is often overshadowed by the symbolic and social dimensions. 

Q15. What are the main reasons why people choose to dispose of luxury goods?

More precisely, Lee et al. (2015) suggest that values engendered by luxury possessions – cognitive (quality and economic) and emotional (symbolic and experiential) – create a perceived switching cost upon disposition. 

Q16. What is the meaning of selling pre-owned luxury?

luxury consumers might feel guilty regarding their “superfluous” consumption and selling pre-owned luxury might be a compensatory behaviour and a way to alleviate moral concerns:“I feel concerned sometimes that The authorspend so much on luxury handbags. 

Q17. How does the person sell a good?

When the item is priced and displayed online, the good is removed from the wardrobe, placed in its box and put aside until the moment it will be purchased. 

Q18. What is the effect of second-hand selling?

For some sellers, the act of selling second-hand luxury items bestows on the seller the perception ofbelonging to a higher echelon social status, as they would never indulge in the purchase for themselves.