For Luxury brands, offering a resale is a great opportunity as the luxury secondhand market is growing faster than the primary luxury market. As per statista report, the second hand luxury market is worth EUR 28 Billion and growing at well over 10% CAGR; and the majority of this market is being driven by online sales. Added to this; affluent and young GenZ shoppers are looking for products from brands that offer sustainability in their DNA and promote circular commerce. Of course all of this has led to the brands jumping on the resale bandwagon.
Therefore second hand resale becomes a classic extension to the Brands’ original business model. Whilst the second hand sale offers a great opportunity, it also presents itself with a great set of challenges. These include cannibalization of the primary market, evolving reseller partner conflicts and the foremost challenge is “Brand Dilution”.
When customers buy from the authorised branded stores or from the brand’s online store, they know for sure that the products that are being purchased are authentic. However when Brands decide to offer second hand resale, it is extremely important to ensure that every product that is sold is authentic and refurbished. If any of the products or accessories turn out to be a super fake, it results in customer dissatisfaction and these days turns into a social media uproar thus leading to the brand dilution.
Entrupy offers both Authentication and Fingerprinting solutions to the brands to prevent brand dilution. Using fingerprinting at the source of manufacturing, brands can ‘register’ every product and thus generate a unique, tamper proof and secure fingerprint. Once a product is registered, it’s stored securely in Entrupy’s cloud servers. So when the brands buy pre-owned products from its customers for refurbishing, they can easily verify the authenticity and uniqueness of the product by comparing with the registered Fingerprint. Entrupy’s Fingerprinting provides 100% accuracy in near real time thus empowering every associate to become an fashion & luxury expert. Entrupy Fingerprinting ensures the integrity of the supply chain from the time a product is manufactured till it reaches the consumer & subsequently when consumers return or resell the products back to the brand; enormously helping the brand to avoid any brand dilution.
Retailers (Online & offline) can prevent their brand from dilution too. Pre-owned marketplaces can start authenticating all the products that they purchase or list on their website. Entrupy’s Authentication solution instantly identifies the authenticity of the product thus helping marketplaces to improve the trust with their customers. Entrupy’s Authentication solution supports over 20,000 different designer bags and accessory styles from the top 15 luxury brands in the world. Most importantly our solution provides results in under 60 seconds and with over 99.3% accuracy. Further, each of these authentications is backed by a Financial Guarantee.
Thus Entrupy helps both brands and retailers to protect their business reputation and prevents any brand dilution. Don’t wait for your brand to get diluted before you embark on your authenticity journey. With Entrupy you begin with brand reputation intact and enhance as you continue to do your business.