THE PRE-OWNED JEWELRY MARKET IS BOOMING — JEWELERS SHOULD GET THEIR SHARE
Luxury goods are made to last — and the trend for purchasing pre-owned fine jewelry and watches has been on a sustained rise. Driven by growth in online sales, shifting consumer preferences, and rising concern about sustainability among younger buyers, the secondary market for hard luxury is expanding rapidly. These trends were well underway before COVID-19, but the pandemic and the economic slowdown it created have accelerated them significantly.
A MARKET WORTH OVER $22 BILLION AND GROWING
THE BCG FINDINGS
Published in September 2020, the Boston Consulting Group's report on the hard luxury market found the secondhand market for watches and pre-owned/estate jewelry is worth over $22 billion worldwide — growing at 8% annually, significantly faster than the luxury industry overall.
CONSUMER INTENT
In a BCG survey of 12,000 luxury consumers from 10 countries, 62% said they would consider buying a secondhand luxury item and 25% had already made a purchase in the past year — with 18% of those purchases being watches and jewelry.
WATCHES VS JEWELRY
Watches account for about 75% of secondhand hard luxury sales, with pre-owned and estate jewelry making up the remaining 25%. The secondhand watch market alone is set to reach up to $32 billion by 2025, according to McKinsey — and jewelry is following.
ENORMOUS OPPORTUNITIES FOR ESTATE JEWELRY
BCG's analysis reveals that secondhand sales do not reduce the purchase of new products — the right approach can complement new goods sales, reinforce a brand's value, and give access to a critical group of future consumers that luxury retailers should be cultivating.
WHAT CONSUMERS EXPECT
70% of luxury consumers said they would prefer to buy secondhand products from luxury brands directly. 74% said they would like brands to certify secondhand products sold through resellers. These expectations create a clear opportunity for forward-looking jewelers to provide the security, convenience, and service consumers are seeking.
A GAP IN THE MARKET
Much estate jewelry is not from mainstream luxury brands, and most luxury brands do not have certified pre-owned programs. This creates a meaningful opportunity for independent retailers to use their brand, expertise, and customer relationships to provide the confidence and authentication consumers need.
PARTNERING FOR SUCCESS WITH WHITE PINE
White Pine Wholesale serves as a trusted, experienced buyer and seller of estate jewelry — in addition to recycled diamonds — and can help jewelers navigate a variety of profitable opportunities to buy and sell pre-owned jewelry.
HELPING YOU BUY FROM THE PUBLIC
"As a leading recycler of diamonds and jewelry, we value items for more than the metal and breakout value," explains CEO Benjamin Burne. "This allows us to offer higher prices than other jewelry and diamond buyers." White Pine can help jewelers accurately value gemstones and jewelry to make competitive offers to walk-in customers.
SUPPLEMENTING PRE-OWNED CASES
White Pine can supplement jewelers' pre-owned cases with select styles to add a new revenue stream. The company purchases pre-owned jewelry both branded and unbranded — including engagement rings, earrings, pendants, necklaces, bracelets, and watches.
WHAT'S MOST IN DEMAND
Most coveted are pieces from the Art Deco period — you can't get enough. Currently there is a strong supply of 1980s to more modern pieces. Keep an eye on estate jewelry from the 1970s, particularly vintage charms, which fashion platforms predict will continue to perform well with younger buyers.
A SHIFT IN MINDSET
Pre-owned, antique, and recycled jewelry has rapidly gained momentum due to supply chain disruptions and a broader consumer shift toward purchasing existing items — extending to engagement rings, from vintage designs to custom creations made with reclaimed materials.
THE SUSTAINABILITY DRIVER
Secondhand jewelry and reclaimed materials are the most sustainable option available, given the environmental and social effects of mining and lab-created production. "We live in a consumer society — buying new things perpetuates this. Reusing is an important method we can use to minimize this behavior," notes geochemist Deirdre Clark of Iceland GeoSurvey.
THE BUSINESS CASE
In the past, luxury brands and retailers could ignore the secondhand market — today that is no longer true. Burne advocates that by expanding the estate jewelry category, jewelers can create compelling opportunities to add complementary sales, recruit new customers, and support sustainability agendas that resonate with the next generation of buyers.
STAKE YOUR CLAIM IN THE PRE-OWNED MARKET
The market for pre-owned jewelry has enormous room to grow — and forward-looking jewelers who act now will be best positioned to shape demand and build lasting customer relationships. White Pine is ready to help you navigate the opportunities, from buying estate jewelry from the public to supplementing your pre-owned cases with quality inventory.
