From a sluggish Chinese consumer to a stronger dollar, luxury firms are already up against a slew of challenges. But are they making things even harder on themselves?
As global sales of luxury goods slow—with Bain consultancy predicting sales will once again increase in the low-single digits this year—the off-price and second-hand markets continue to build steam.
Last week, online consignment shop thredUP secured $81 million in additional funding led by Goldman Sachs' investment arm. Earlier this summer, luxury consignment shop The RealReal partnered with upscale department store Neiman Marcus on a program that offers sellers an extra 10 percent if they receive payment via a Neiman Marcus gift card.
All in, Bain estimates that the off-price market represents more than 30 percent of total luxury sales.
"Like everything in retail, it's all about segmentation," said Hana Ben-Shabat, a partner in the retail practice of A.T. Kearney.