The evolution of fashion luxury brands´ business model to face the emergence of the secondhand market

Abstract

Drawing from the Business Model Canvas, the objective of this research is to understand how fashion luxury brands can change their business model to do face the secondhand market emergence. The answer to this research question has interest for luxury brands, since if they do not recognize the power of secondhand market and plan how to act, their performance will suffer in the future.To answer this question, I followed a qualitative research approach and conducted a comparative case study on four fashion luxury brands.The findings of the study demonstrate that fashion luxury brands should support the secondhand luxury market and highlight two ways of doing it: add it as part of their business and/or create partnerships with secondhand luxury platforms. The implementation of those measures turns secondhand luxury platforms into key partners and/or add luxury resale as a new key activity. Consequently, luxury brands can captivate new segments of customers, improve the relationship with the current ones and increase revenues. Finally, those measures enrich their value proposition by being focused on promoting circularity of luxury items.

Date of Award	26 Jan 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Laure Leglise (Supervisor)