In this
REPORT THE LUXURY STOCK EXCHANGE INSIDE THE WORLD OF LUXURY Dictated by the power of our consumers, we take a closer look at the brands that are shaping the ever-changing luxury sphere.
BAGS THAT LEAD THE LUXURY STOCK EXCHANGE New or pre-owned? We take a closer look at the top brands in each segment and their chartered growth.
HOTTEST BAGS OF 2017 Their styles are highly coveted by those discerning enough to choose the best.
BRAND LEADERS The reigning brands in online luxury shopping.
SHOES & APPARELS MAKING A POINT With a slowdown in the demand for luxury bags, brands are turning to shoes and apparels as avenues to increase overall sales.
SECOND LIFE: SHOPPERS SEEING MORE VALUE IN PRE-OWNED LUXURY THE WARDROBE OF MILLENNIALS Emergence of a new breed of shoppers in the pre-owned sector and key factors they consider before making a luxury purchase.
A LUXURY SHOPPER'S CLOSET: WHAT IS ITS WORTH? How many luxury bags do you use regularly? A recent survey conducted across working professionals showed that a handful of these luxury investments still go unused.
REEBONZ
| Asia Luxury Index 2017
THE STATE OF RESALE A concise overview at what's happening in the resale segment and the effect it's having on shopper behavior.
HERE TODAY, GONE TOMORROW In a jiffy, these pre-owned luxury pieces were sold as soon as they were listed on Closets!
RESALE IN THE CITY We take a look at four of our most influential cities in fashion today and see how they thrive in the pre-owned categories.
WITH A NEW BREED OF SHOPPERS, WHAT ARE THE BLUE CHIP BRANDS? TAKING STOCK OF INVESTMENT-WORTHY BRANDS The parameters of luxury are changing. Brands with niche followings are sharing space with big names in the luxury portfolio.
THE UNBREAKABLE BIRKIN Indisputably, it's the holy grail of luxury bags. We take a closer look at why a Birkin is worth the investment.
TOP 3 VALUABLE BRANDS Taking stock of the most valuable brands and products.
THE VALUE OF AUTHENCITY A search for greater luxury value and experience.
LUXURY TOMORROW THE FUTURE OF THE LUXURY STOCK EXCHANGE Reebonz's founders deconstruct trends affecting luxury shopping in 2018.
Cover
01
NOTE
from the
founders In the second edition of our Asia Luxury Index, we’ve observed
Luxury brands, Hermès, Louis Vuitton and Chanel, that
interesting shifts in the luxury landscape that stems from several
leverage heritage dominated as the industry’s most valuable
factors within the socio-economic fabric of our environment.
brands. We take a closer look at Hermès’ unflinching performance in its resale values further attesting its high
Reebonz first started out as a flash sales site in 2009 when brands
perceived values regardless of prior ownership.
and retailers were seeking avenues to liquidate stocks post the financial crisis. Fast forward eight years, the brand has evolved
Drawing on key insights derived from Reebonz’s latest sales
into a luxury ecosystem that makes buying and selling the widest
data across Australia, China, Hong Kong, Indonesia, Malaysia
range of new and pre-owned luxury accessible to consumers
and Singapore, we frame our perspectives on where the online
globally. From featuring international luxury fashion boutiques
luxury sector stands today in the ecosystem of luxury.
on our Marketplace platform to connecting individual sellers and buyers through our do-it-yourself Closets selling mobile applica-
SAMUEL LIM, CEO
tion, Reebonz has continued to evolve alongside our consumers
DANIEL LIM and BENJAMIN HAN Co-Founders
and their changing luxury consumption habits.
2017 brought with it new challenges and opportunities that were rightfully seized. The emergence of the millennial luxury shopper, tilted the scales in favour of a growing pre-owned luxury market that opened up access to classic favourites and unique finds at accessible prices. We share insights shaping the pre-owned market from the most established resale brands to the highest returns earned reselling on our platforms.
Shoes continued to chip away to emerge amongst the top three sector leaders in the luxury stock exchange. Sneakers dominated the highest sales growth within the shoe sector with Hong Kong contributing the highest increase in overall transactions.
02
Note From The Founders
Asia Luxury Index 2017 | R E E B O N Z
LUXURY
Stock Exchange
SECTION 1
THE
INSIDE THE
WORLD of LUXURY Dictated by the power of our consumers, we take a closer look at the brands that are shaping the ever-changing luxury sphere. With swift developing luxury trends, there is an evident growth of emerging CHINA
sectors such as timepieces and accessories among luxury consumers in Asia.
NEW
While predictable players such as Prada, Balenciaga and Salvatore Ferragamo
Bags: Fendi, Burberry, Prada
soared in general sectors, Bottega Veneta and Fendi emerged favourites in the
Small Leather Goods: Balenciaga, Givenchy, Prada Shoes: Valentino Garavani, Salvatore Ferragamo, Tod’s
accessories category. For timepieces, Rolex and Franck Muller stayed firmly
Accessories: Burberry, Fendi, Alexander McQueen
rooted in their top positions. In the pre-owned categories, powerhouse brands Hermès and Chanel dominated in most sectors while Salvatore Ferragamo led in
PRE-OWNED
shoes, and Rolex and Cartier emerged leaders in timepieces.
Bags: Louis Vuitton, Chanel, Salvatore Ferragamo Small Leather Goods: Miu Miu Shoes: Hermès Accessories: Chanel, Gucci, Tiffany & Co.
HONG KONG/ MACAU NEW Bags: Saint Laurent, Balenciaga, Givenchy Small Leather Goods: Prada, Bottega Veneta, Miu Miu
MALAYSIA NEW
Shoes: Valentino Garavani, Salvatore Ferragamo, Tod’s Accessories: Fendi, Burberry, Bottega Veneta Timepieces: Rolex, Frank Muller, Panerai
Bags: Prada, Balenciaga, Fendi Small Leather Goods: Prada, Bottega Veneta, Salvatore Ferragamo Shoes: Salvatore Ferragamo, Valentino Garavani, Tory Burch Accessories: Fendi, Burberry, Bottega Veneta Timepieces: Frank Muller, Daniel Wellington, Locman
PRE-OWNED Bags: Chanel, Hermès, Céline Small Leather Goods: Chanel, Hermès, Louis Vuitton Shoes: Salvatore Ferragamo, Chanel, Roger Vivier Accessories: Chanel, Cartier, Hermès
PRE-OWNED
Timepieces: Rolex, Cartier, Omega
Bags: Chanel, Louis Vuitton, Prada Small Leather Goods: Hermès, Louis Vuitton, Prada
SINGAPORE NEW Bags: Balenciaga, Prada, Saint Laurent Small Leather Goods: Prada, Salvatore Ferragamo, Bottega Veneta Shoes: Salvatore Ferragamo, Valentino Garavani, Tory Burch Accessories: Balenciaga, Fendi, Bottega Veneta Timepieces: Frank Muller, Rolex, Gucci PRE-OWNED
Shoes: Chanel, Salvatore Ferragamo, Christian Louboutin
Bags: Chanel, Louis Vuitton, Hermès
Accessories: Hermès, Bvlgari, Chanel
Small Leather Goods: Louis Vuitton, Chanel, Hermès
Timepieces: Rolex, Cartier, Omega
Shoes: Salvatore Ferragamo, Christian Louboutin, Chanel Accessories: Chanel, Hermès, Bvlgari Timepieces: Rolex, Cartier, Omega
INDONESIA Australia/New Zealand
NEW Bags: Balenciaga, Fendi, Givenchy
NEW
Small Leather Goods: Balenciaga, Salvatore Ferragamo, Prada
Bags: Saint Laurent, Prada, Givenchy
Shoes: Tory Burch, Saint Laurent, Salvatore Ferragamo
Small Leather Goods: Prada, Salvatore Ferragamo, Burberry
. Accessories: Balenciaga, Bottega Veneta, Burberry
Shoes: Valentino Garavani, Salvatore Ferragamo, Tod’s
Timepieces: Hermès, Rolex, Chopard
Accessories: Burberry, Alexandra McQueen, Fendi Timepieces: Chopard
PRE-OWNED Bags: Chanel, Louis Vuitton, Prada
PRE-OWNED
Small Leather Goods: Louis Vuitton, Chanel, Gucci
Bags: Chanel, Louis Vuitton, Prada
Shoes: Salvatore Ferragamo, Christian Louboutin, Prada
Small Leather Goods: Louis Vuitton, Chanel, Prada
Accessories: Chanel, Hermès, Bvlgari
Shoes: Christian Louboutin, Chanel, Salvatore Ferragamo
Timepieces: Rolex, Hermès, Omega
Accessories: Chanel, Hermès, Tiffany & Co. Items classified under Accessories include eyewear, belts and jewellery.
04
Inside The World of Luxury
Asia Luxury Index 2017 | R E E B O N Z
6 in10
12x
Pre-owned bags are 12x more popular than jewellery from 2015 to 2017.
In 2016 and 2017, every 6 out of 10 orders are for a bag.
NEW BAG S
77%
Bags make up an average of 77% of total transactions in 2016 and 2017, across new and pre-owned categories.
PRE -OW NE D BAGS CHANEL
represented 9% and 11% of new bag transactions in 2016 and 2017.
continues to be the top brand for pre-owned bags making up 32% of transactions in 2016 and 33% in 2017.
7
11%
9%
6
201
6
201
201
BALENCIAGA
201
7
33%
32%
LOUIS VUITTON
stayed the same and remains second in place making up 9% and 7% of new bags sold in 2016 and 2017.
stays in the second place, despite showing an increase from previous years' transactions. It increased from 8% to 13% between 2016 and 2017.
6
201
201
PRADA
7
7%
9%
6
201
New bags are 3x more popular than small leather goods (2015 - 2017)
201
3x
7
13%
8%
HERMĂˆS
remains the third best selling brand, making up 9% and 6% of new bags sold in 2016 and 2017.
comes in strong as a new player, making up 14% and 13% of total pre-owned transactions in 2016 and 2017.
6%
6
201
9%
7
201
6
201
201
SAINT LAURENT
14%
REEBONZ
| Asia Luxury Index 2017
7
13%
Bags Lead The Luxury Stock Exchange
05
THE
HOTTEST BAGS of 2017 Their styles are highly coveted by those who are discerning enough to only choose the best. Yes, these are the top bags that have garnered the attention in our luxury space based on their total quantity sold in 2017.
1.
2. BURBERRY HORSEFERRY CHECK SMALL CANTERBURY TOTE
PRADA SAFFIANO LUX GALLERIA SHOPPING BAG 28CM
3.
4. BURBERRY HOUSE CHECK DERBY LEATHER MEDIUM BANNER TOTE
5.
3.1 PHILLIP LIM PASHLI MINI SATCHEL
6.
FENDI SHOPPING 2JOURS PETITE TOTE
7.
GIVENCHY SMALL ANTIGONA
8. BALENCIAGA CLASSIC METALLIC EDGE MINI CITY
9.
10.
PRADA CITY CALF SAFFIANO CAHIER BAG
06
BURBERRY HOUSE CHECK LEATHER SMALL MACKEN CROSSBODY
The Hottest Bags of 2017
FENDI SMALL BY THE WAY
Asia Luxury Index 2017 | R E E B O N Z
BRAND LEADERS IN ONLINE LUXURY SHOPPING
New ACCESSORIES
SHOES
1. Fendi
S M A L L L E AT H E R G O O D S
1. Salvatore Ferragamo
1. Prada
2. Valentino Garavani
2. Salvatore Ferragamo
2. Burberry 3. Bottega Veneta
3. Tory Burch
3. Balenciaga
Pre-Owned ACCESSORIES
SHOES
1. Chanel
S M A L L L E AT H E R G O O D S
1. Salvatore Ferragamo
1. Louis Vuitton
2. Christian Louboutin
2. Hermès
3. Chanel
3. Cartier
2. Chanel
3. Hermès
Items classified under Accessories incude belts, earrings and jewellery.
REEBONZ
| Asia Luxury Index 2017
The Brand Leaders
07
WITH THE SHIFT IN LUXURY DEMANDS,
WHAT'S THE NEXT BET?
With a shift in the demand for luxury bags, brands are turning to shoes and apparels as avenues to increase overall sales, making them strong contenders for growth.
SHOES Top Growth By Brand
THE STELLAR PERFORMER In the overall shoe sector (new and pre-owned), Stella McCartney, Kenzo and Saint Laurent were the top three brands purchased. Stella McCartney in particular, saw sales increase by 36% from 2016 to 2017.
Top Growth By Category
THE CASUAL CHAMPION By overall category, sneakers saw the highest increase from 2016 to 2017. Making a comeback from the 90s, it was no surprise considering this style was recognised as one of the top shoe trend in the luxury landscape.
Top Growth By Category & Country
THE GROWTH CHARTERS Riding on the sneakers trend, Hong Kong and China witnessed a sales growth of 48% and 186% respectively between 2016 and 2017.
APPARELS Top Growth By Brand
BEST OF BURBERRY In the overall apparels sector (new and pre-owned), Burberry, Gucci and Kenzo topped the charts. Burberry in particular, saw an astonishing nine times increase in sales from 2016 to 2017!
Top Growth By Category
TAKE IT OUTSIDE Comparing the overall category, outerwear* experienced the highest increase in sales of four times from 2016 to 2017 followed by t-shirt and knitwear/sweater that saw sales growing by 51% and 22% respectively. *Jackets, Trenchcoats, Outercoats
Top Growth By Category & Country
THE GROWTH CHARTERS In the t-shirt category, growth was seen across all markets from 2016 to 2017, with Hong Kong making a distinct increase in sales by six times from 2016 to 2017. In the outerwear category, the largest margin of growth was observed in Australia/New Zealand that saw sales catapulting 50 times from 2016 to 2017. In the knitwear/sweater category, China had the highest sales increase by 17 times from 2016 to 2017.
08
Shoes & Apparels Making a Point
Asia Luxury Index 2017 | R E E B O N Z
SHOPPERS SEEING more v a l u e i n Pre-Owned Luxury
SECTION 2
SECOND LIFE
THE
WARDROBE of MILLENNIALS Emergence Of A New Breed In The Pre-Owned Category
According to the Luxury Daily, "The entire resale industry is expected to grow from $18 billion in 2016 to $33 billion by 2021. This data comes from retail think tank Fung Global Retail & Technology, which released the "Fashion Re-Commerce Update" report to dig into exactly how and why this category has been taking off. The reason for resale’s meteoric growth can be boiled down to a few key concepts. To start with, demographics can help explain this phenomenon. Millennials tend to have less money than their older counterparts and are the primary drivers of resale sales as they hunt for the best quality goods at the lowest prices. This is also aided by the fact that many of them consider digging through resellers to find the perfect piece a fun activity in itself, leading to even more sales. We took a survey on millennials across seven countries, to find out what are some key factors that they consider before making a pre-owned luxury purchase.
Millennials are most likely to purchase pre-owned luxury products once every one to three months.
Millennials are more inclined to buying small leather goods and shoes in the pre-owned categories. But, they are also interested in apparels.
Chanel is the top purchased pre-owned brand, taking up over 30% of millennials' purchase decisions, with Balenciaga and Hermès following behind. Prada and Gucci are also pacing up in this segment.
For most millennial shoppers, quality of material, colour and resale value of the item take priority before purchasing a pre-owned item.
*Survey results represent individuals aged between 18 and 34 years old across Australia, China, Hong Kong, Indonesia, Malaysia, New Zealand and Singapore.
10
The Wardrobe of Millennials
Asia Luxury Index 2017 | R E E B O N Z
A LUXURY SHOPPER'S CLOSET
WHAT is its WORTH?
How many luxury bags do you use regularly? A recent survey conducted across working professionals showed that a handful of these luxury investments still go unused.
Luxury Bags In The Closet
1 to 5
Total Cost
Up To S$7,500
But About
60% ARE UNUSED!
That's An Estimated Total Resale Value Of
S$6,000
REEBONZ
| Asia Luxury Index 2017
A Luxury Shopper’s Closet. What is its Worth?
11
THE
STATE of RESALE The idea of wanting luxury pieces that are no longer available in stores or investing in iconic items that have stood the test of time, has contributed to a 40% sales growth in the pre-owned category at Reebonz. Consumers looking to gain from their investments in bags like the Hermès Birkin, look at secondary markets where resale values can run as high as 125% of its original retail price. For some, the resale market has opened up avenues to buy sought-after brands at easier prices. The shifting perceptions towards pre-owned luxury have certainly altered the state of resale and how consumers shop today. We dig deeper and share a concise overview of insights shaping the pre-owned segment at Reebonz.
Best selling brands are Chanel, Hermès and Louis Vuitton
Chanel is the top searched brand with over 11,600 searches from 2016 to 2017
Since 2016, approximately 10,000 Chanel items have been sold!
The top seller in Singapore transacted a total value of over $1.1 million
The best time to list and sell items is between 9p.m. to 11p.m. SGT
The top seller in Malaysia transacted a total value of over $300,000
Best days to sell are Wednesday and Sunday
The top seller in Hong Kong transacted a total value of approximately $290,000
A purchase on Closets* is made every 10 minutes
The top seller in Indonesia transacted a total value of more than half a million
Apparels have the top sales growth of 13% from 2016 to 2017
The top 5 established resale brands sold are Chanel, Hermès, Louis Vuitton, Prada and Balenciaga
The average order value of a pre-owned timepiece is 5 times more than a brand new one
The top 5 breakout resale brands sold are Fendi, Coach, Tory Burch, Michael Kors and Longchamp
All values reflected are in Singapore dollars. *Closets is a standalone C2C mobile app selling platform.
12
The State of Resale
Asia Luxury Index 2017 | R E E B O N Z
H E R M È S K E L LY
HERMÈS OSTRICH BIRKIN 30
Selling Price: $15,000 Resale Price: $12,000
Selling Price: $25,981 Resale Price: $28,000
Here today,
GONE TOMORROW
We take a closer look at the list of pre-owned luxury pieces which were sold within the day they were listed on Closets!
CÉLINE TRAPEZE (Small) Selling Price: $3,250 Resale Price: $1,800
REEBONZ
CHANEL BOY (Medium)
HERMÈS LINDY
Selling Price: $6,930 Resale Price: $4,800
Selling Price: $12,000 Resale Price: $7,000
| Asia Luxury Index 2017
Here Today, Gone Tomorrow
13
RESALE in the CITY We present four of our most influential cities in fashion today and feature the brands that make it to their top 10 best-seller lists.
Hong Kong/Macau
TOP TEN
Indonesia
TOP TEN
Malaysia
TOP TEN
Singapore
TOP TEN
Brands in Hong Kong/Macau
Brands in Indonesia
Brands in Malaysia
Brands in Singapore
Hermès
Chanel
Chanel
Hermès
Chanel
Louis Vuitton
Hermès
Chanel
Céline
Hermès
Louis Vuitton
Louis Vuitton
Saint Laurent
Balenciaga
Dior
Saint Laurent
Louis Vuitton
Gucci
Prada
Prada
Balenciaga
Saint Laurent
Saint Laurent
Céline
Dior
Prada
Balenciaga
Balenciaga
Prada
Fendi
Gucci
Gucci
Valentino
Tory Burch
Burberry
Dior
Gucci
Salvatore Ferragamo
Coach
Salvatore Ferragamo
14
Resale In The City
Asia Luxury Index 2017 | R E E B O N Z
W H AT
CONSUMERS are BUYING 2 0 1 6
NEW
PRE-OWNED
2 0 1 7
NEW
PRE-OWNED
Bags |
Shoes |
Small Leather Goods |
Accessories
Accessories (include timepieces and jewellery)
REEBONZ
| Asia Luxury Index 2017
What Consumers Are Buying
15
WHAT ARE THE Blue Chip Brands?
SECTION 3
WITH A NEW BREED OF SHOPPERS,
TA K I N G S T O C K O F
INVESTMENT-WORTHY BRANDS Most Valuable Brands & Products
1.
GO-TO PIECES These bags fetch higher prices in comparison to their original retail price.
HERMÈS ETOUPE TOGO BIRKIN 35 Resale Index: 143% of Retail Price
3.
CHANEL BOY (MEDIUM) Resale Index: 69% of Retail Price
RELIABLE BETS These bags hold their value well despite being a pre-owned luxury item.
5.
GUCCI SOHO Resale Index: 56% of Retail Price
7.
PRADA
SAFFIANO LUX Resale Index: 53% of Retail Price
STEADY DEMAND These bags sell at a less expensive price but still attract a good market of second-hand buyers.
9.
SALVATORE FERRAGAMO VARA BAG Resale Index: 46% of Retail Price
2.
HERMÈS TOILE OFFICIER TAURILLON CLEMENCE BIRKIN 35 Resale Index: 140% of Retail Price
4.
HERMÈS LINDY Resale Index: 58% of Retail Price
6.
CÉLINE TRAPEZE (SMALL) Resale Index: 55% of Retail Price
8.
DIOR LADY BAG Resale Index: 46% of Retail Price
10.
LOUIS VUITTON SPEEDY Resale Index: 45% of Retail Price
Based on Reebonz sales data in 2016 and 2017. Resale value is derived from products sold within one year in excellent condition with full packaging.
REEBONZ
| Asia Luxury Index 2017
Taking Stock of Investment-Worthy Brands
17
THE
UNBREAKABLE BIRKIN Indisputably, it's the holy grail of luxury bags.
Putting aside the common investments of stocks and gold, a study from the Baghunter revealed that the value of Hermès Birkin handbags has increased by 20% since January 2016. This is further substantiated by the increase in purchase for limited edition pieces, rising up by 20% in recent years. An affinity for luxury might be thought of as a vice, but it doesn’t always have to be a frivolous splurge. Perhaps, the best compromise is then to choose luxury that has the best appreciation value, or the brands that are the most coveted.
Fact: In Reebonz, a pre-owned Hermès Etoupe Togo Birkin 35 was sold at a resale value of 143%!
Average Rise in Resale Value for Birkins Since 2017
150%
Increased by 43%
Increased by 40%
Increased by 25%
Increased by 21%
Etoupe Togo Birkin 35
Toile Officier Taurillon Clemence Birkin 35
Ostrich Birkin 30
Swift Birkin 25
Increased by 13%
Increased by 12%
Orange Poppy Taurillon Clemence Birkin 35
Griolet Tadelakt Birkin 35
100%
50%
0%
Based on resale value transacted on Reebonz in 2017
18
The Unbreakable Birkin
Asia Luxury Index 2017 | R E E B O N Z
MAKING THE
BIRKIN INVESTMENT "With a rich heritage of over 180 years and intricate craftsmanship that is still practiced by artisans today, Hermès has a legacy which falls under the ultra-luxury range, apart from the mainstream luxury. That said, during bad economic times, luxury markets have a tendency to suffer, but the ultra-luxury market can withstand economic factors that affect other industries." - DANIEL LIM, Co-founder, REEBONZ
$65,000
$45,000
$35,000
$29,000
Resale value of a pre-owned
Resale value of a pre-owned
Resale value of a pre-owned
Resale value of a pre-owned
HERMÈS BORDEAUX POROSUS CROCODILE 30CM BIRKIN BAG PALLADIUM PHW That's three times the average salary of a CEO
HERMÈS MATTE FAUVE BIRKIN FABULOUS 35CM
Price of two Honda Civic cars in the United States of America
HERMÈS BIRKIN 30CM BUBBLEGUM GHW LEATHER CHEVRE STAMP T
HERMÈS BIRKIN 30 BLUE NUIT
According to a study, you can travel first class on a top-rated airline twice (and still have some balance left)!
Price of sailing to the Caribbean luxuriously over 25 times!
*All values reflected are in Singapore dollars.
A N AT O M Y O F A
BIRKIN
TURNLOCK
The turning knob that hooks the lock
PONTET
Metal brackets on the bag that hold the buckle straps firmly PLAQUE
A metal hardware on each leather strap (sangle) that clasps over the turnlock
SANGLES
The two leather buckle straps that help fasten the bag
CLOCHETTE
The leather lanyard and bell to hold keys
REEBONZ
| Asia Luxury Index 2017
‘H’ PADLOCK
Making The Birkin Investment
19
TOP 3
BLUE CHIP BRANDS
1
Key facts and figures about the top three luxury brands and how they perform on Reebonz.
LOUIS VUITTON | US$29.2 BILLION
1.5x
53%
The increase in the number of pre-owned Louis Vuitton bags sold from 2016 to 2017.
The approximate cost savings a shopper can gain from purchasing a pre-owned Louis Vuitton Speedy (30 cm) bag instead of a brand new piece.
2
HERMÈS | US$23.4 BILLION
4x The increase in the number of pre-owned Hermès bag sold from 2016 to 2017.
3
4x The increase in demand for new Hermès bags from 2016 to 2017.
125% The resale value of an Hermès Kelly could go as high as 125% of its retail price.
CHANEL | US$11 BILLION
1.6x The increase in the number of pre-owned Chanel bags sold from 2016 to 2017.
30% The approximate savings from purchasing a pre-owned Chanel Boy (Medium) instead of a brand new piece.
Current brand estimated value according to Millward Brown
20
Blue Chip Brands
Asia Luxury Index 2017 | R E E B O N Z
of AUTHENTICITY T H E VA L U E
A search for greater luxury value and experience As a trusted online luxury platform for buying and selling the widest range of new and pre-owned luxury, Reebonz has carved a space that caters to the various needs of its luxury consumers. In making the whole shopping experience credible and seamless, it becomes imperative that authenticity is thoroughly reinforced. Empowered by the digital landscape and social networks, consumers in the present day are seen as critics and curators of their own luxury consumption. And with the growing demand of pre-owned luxury, the focus on authenticity has naturally expanded, especially for ultra-luxury pieces like the Hermès. “As it is becoming an increasingly lucrative industry, counterfeiters are becoming more in-tune with consumer demand and employing advanced technology to mask their identity online from law enforcement," cites Helen Saunders, Head of Intelligence and Operations at INCOPRO, London. Sellers in the resale markets are turning out to be some of the worst offenders, hence it becomes critical for established online retailers like Reebonz to champion their authenticity guarantee.
REEBONZ
| Asia Luxury Index 2017
The Value of Authenticity
21
does R E E B O N Z AUTHENTICATE HOW
THE REEBONZ DNA One of the company's unique DNA lies in its in-house capabilities in authentication. Having a team of internationally-trained ateliers, this allows the brand to authenticate a range of items from leather products, shoes, accessories, timepieces to jewellery.
IN-HOUSE CAPABILITIES Advocating authenticity, Reebonz practices a few principles in ensuring all products meet the highest standards of quality. For leather goods, in-house artisans inspect for signature elements and unique characteristics of each product (eg: logo, colour, hardware, etc). For timepieces, each item goes through the eyes of skilled watchmakers, undergoing a 7-point check-up certification. For jewellery (diamonds and gemstones), the atelier will provide an unbiased analysis, covering the jewel's quality and any internal and external characteristics it may possess. Reebonz has also adopted an authentication tool that marks newly arrived products in its warehouse with an invisible ink-like pen so that the company knows when an item that’s already gone through Reebonz’s certification process comes back in for sale. This greatly improves efficiency without compromising the accuracy of verifying product authentication, supporting the fluid operation of its ecosystem model.
REINFORCING THE HIGHEST STANDARDS OF QUALITY Acknowledging the growing sophistication of counterfeiters, Reebonz continues to build its capabilities in authentication to combat this problem. The key goal is to provide a trusted environment that safeguards consumers' needs and reassures them that every purchase made on the website is authentic.
22
How Does Reebonz Authenticate?
Asia Luxury Index 2017 | R E E B O N Z
Luxury TOMORROW
THE FUTURE OF THE L U X U RY S TO C K E XC H A N G E Reebonz's founders deconstruct trends affecting luxury shopping in 2018. For Reebonz, maintaining its status as the number one online luxury retailer in Southeast Asia involves rapid experimentation and innovation to stay aligned with consumers’ changing luxury consumption journey. “Strengthening our authenticity capabilities is but one of the many factors we work on to build our credibility and reputation as a trusted online luxury brand. With the proliferation of online shopping options, consumers are placing their loyalty with brands that best tailor their experiences to them. We’ve essentially created a luxury ecosystem that holistically addresses the needs of today’s luxury consumer. But, this service needs to be personalised to inject relevancy at the right moments of their journey with us, distinguishing Reebonz from the competition,” mentions Samuel Lim, CEO of Reebonz. Machine-driven personalisation is a trend the founders of Reebonz – Samuel Lim, Daniel Lim and Benjamin Han – believe will take cornerstone in how luxury shopping decisions will be made. Regional General Manager of Reebonz, Benjamin Han says, “Products need to appeal at a more visceral level. Consumers, especially the millennials, are more interested in how the product relates to their lifestyle." He further adds, "Machine learning presents this huge opportunity of creating unique experiences that goes far beyond what the human mind can generate." While some may question user-generated content (UGC) as a passing fad, Reebonz sees this as a continuing trend that will be focused on in 2018. Seeding content from customers in contextually relevant moments of the browsing experience builds trust and reassurance. “Getting consumers involved in sharing their experience with the product and service doesn’t just build loyalty, but it’s also a powerful social proofing tool that helps shoppers bypass the instinct to go directly for the lowest priced item," shares Daniel Lim, Chief Brand Officer of Reebonz. "It peels away the uncertainty especially for first time visitors and adds authenticity to the shopping experience." It is evident that a shopping experience that feels personal and continues to be driven by the inherently social nature of this activity takes centre stage in creating value for the modern luxury consumer. While Reebonz continues to work on the fundamental elements that cements its approach to delivering luxury as a service, its founders have their sights firmly rooted on trends indicative of building deeper relationships with their consumers.
REEBONZ
| Asia Luxury Index 2017
The Future Of The Luxury Stock Exchange
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