The Aftermarket Advantage: How Resale Value Redefines Luxury Fashion Marketing

In today's changing fashion economy, luxury doesn't stop when you buy something; it starts there. The value of luxury goods on the resale market is now one of the best ways to gauge a brand's worth, the quality of its craftsmanship, and the loyalty of its customers. Business Insider's 2025 report showed that resale data now has a significant impact on buying decisions in the high-end fashion world. When choosing which bag or watch to buy, collectors, investors, and even casual luxury shoppers are paying more and more attention to how much they could sell it for in the future.

Image Credit: Business Insider, 2025

When the Purchase Lasts Longer Than the Value

Luxury brands have always sold exclusivity, but today's customers want things that are long-lasting, easy to sell, and sound investments. If you buy a bag or a watch that retains or increases in value, it's not just a purchase; it's an asset. This is why sites like The RealReal, Rebag, and Vestiaire Collective, which let people sell things, are doing well. The Birkin phenomenon is a fascinating example.

The Hermès Birkin bag has risen in value faster than gold and stock indices year after year, making it a wearable investment. Some new luxury brands, on the other hand, struggle to maintain their value even when they offer better craftsmanship or new designs. This is because they don't have the aftermarket reputation that shows desirability and scarcity.This creates an interesting paradox: in luxury marketing, perceived value can be more important than actual quality.

The Marketing Science Behind Prices in the Aftermarket

From a fashion marketing and management perspective, resale value is a sign of brand trust because it shows the market believes the brand will remain relevant. A strong aftermarket demonstrates high symbolic capital, a term coined by the sociologist Pierre Bourdieu in 1984, referring to the prestige and status a brand holds in the cultural sphere. This, in turn, strengthens the brand's cultural dominance. High-end homes are now using aftermarket analytics to help them set prices and plan their products. For example:

• Louis Vuitton limits the number of classic models it makes to keep demand high;

• Chanel raised retail prices several times in 2024 to bring primary and secondary market values into line;

• Rolex carefully times product releases to keep waitlists full and prices stable in the aftermarket. Other brands, such as Gucci and Prada, also use aftermarket data to inform their pricing and production strategies.

Meanwhile, mid-tier brands like Michael Kors and Coach have struggled as prices have declined because they produce too many products and offer too many discounts, making them less appealing for resale in the long run.

In summary, the management of the aftermarket has evolved into a crucial, albeit understated, component of a comprehensive luxury marketing strategy. Understanding and effectively navigating the aftermarket can significantly impact a brand's longevity and desirability. The

PSYCHOLOGICAL PULL OF RESALE VALUE

Behavioral economics is fundamental in this case. People are increasingly likely to buy things because they think they will retain their value. A customer might buy a lower-quality bag from a heritage brand because it is more likely to sell again than a higher-quality bag from a newer brand.

This perception-driven buying behavior underscores the fact that luxury marketing is as much about crafting compelling narratives as it is about the products themselves. It's not just about the texture, but the story of timelessness that keeps luxury brands relevant and desirable. Marketers now use this information to extend their brands' lifespans through limited drops, authentication programs, and digital passports powered by blockchain. These tools ensure the product's origin and resale are clear.

What we Learned from Raffles Jakarta: Knowing the Real Value of Fashion

At Raffles Jakarta, our Fashion Marketing and Management students gain a deep understanding of these dynamics in action. They explore how consumer psychology, resale data, and brand storytelling intersect in the real world. Through case studies, they learn how pricing strategy influences perception, how data informs design, and how luxury management transforms into brand asset management. In the age of circular fashion, a sustainable approach that promotes reuse and recycling, any fashion professional who wants to be a leader in sustainability, branding, or retail innovation needs to know about the aftermarket economy.

Raffles Jakarta's Fashion Marketing and Management program equips students with the tools to combine creativity with analytical insight. They learn about luxury branding, consumer behavior, digital marketing, and sustainability trends. Learn how to make not only beautiful products but also long-lasting brand value.

Arman POUREISA

Marketing Manager

Raffles Indonesia

References

Business Insider. (2025, October 22). 3 luxury handbags that add capital to your closet, according to resale data. Retrieved from https://www.businessinsider.com/luxury-bags-best-value-money-investment-hermes-chanel-louis-vuitton-2025-10

Bourdieu, P. (1984). Distinction: A Social Critique of the Judgment of Taste. Harvard University Press.

The RealReal. (2025). Luxury Resale Report 2025. Retrieved from https://www.therealreal.com

Vogue Business. (2025). Inside the Resale Revolution: How Aftermarket Value Shapes Modern Luxury.

Bain & Company. (2024). Global Luxury Market Report 2024.

Statista. (2024). Luxury Resale Market Value Worldwide 2020–2025.