TikTok’s recent launch of its own pre-owned luxury marketplace is sending shockwaves through the retail industry. By partnering with established resale platforms like Reflaunt and Depop, the social media giant is positioning itself at the forefront of an emerging trend – the convergence of social media, e-commerce, and sustainable fashion.
This bold move raises questions about the evolution of social commerce and its potential to disrupt traditional retail models. As consumers, particularly younger generations, increasingly look to platforms like TikTok for shopping inspiration and unique finds, the lines between content consumption and commerce are blurring.
We tapped industry insiders to unpack the deeper implications. What does TikTok’s luxury resale gambit signal about the evolving face of e-commerce? And how might it reshape retail experiences and consumer mindsets?
Melissa Chapman, CEO at Jungle Creations & The Wild by Jungle
Bag a luxury bargain to save money and save the planet – it’s a no brainer surely?
TikTok’s move into luxury resale is a smart way to engage with and cash in on more values-driven young audiences (not for them the horror of Burberry and other luxury brands burning unsold goods) and will act as an entry point for consumers whose bank balances don’t, as yet, match their aspirations.
This latest step in TikTok’s rapid evolution from pure social channel to an online marketplace is offering a ‘one stop shop’ for advertising, content curation, influencer marketing, shopping and now luxury reselling. Gone are the days when social sales equated to merely cheap fast fashion tat.
The Luxe Collective, one of the five retailers trialling on TikTok, has already built huge brand awareness on its TikTok channel (with 1.6 million followers) and is using this ‘fame’ to disrupt the pre-loved shopping experience, by allowing customers to immerse in its creative content and storytelling at the same time as shopping for its products.
For brands, the fear of brand erosion or sales cannibalisation can be carefully managed by working with TikTok and its reseller partners to maintain a sense of exclusivity with rare or limited lines and timely product drops. Badging their goods as recycled or upcycleable also helps reinforce the sense of craftsmanship, durability and sustainability.
To truly capitalise on this trend, brands must adopt an always-on approach to social media, focusing on building strong communities around their products and values. This continuing trend of social to ecommerce will have huge implications for the retail experience. Brands that take the plunge can benefit from digital innovation and experimentation and, with the right partnerships, can reap the benefits without the risk of having to go socially alone. Luxury brands can also be safe in the knowledge that their core buyers will still mostly buy new.
Customer experience and community will be core to success whether in-store or online.
Helenor Gilmour, Director of Insight and Strategy, Beano Brain
TikTok’s move into the luxury resale market is an important development that speaks to the evolving nature of social commerce. Gen Alpha (kids and teens born after 2010) are no strangers to the social and environmental issues of our time and are more likely to engage with brands that share their values, particularly around sustainability.
The rise of pre-owned luxury fashion is a reflection of this, as Gen Alpha seeks out more sustainable options for their fashion needs. It also speaks to their entrepreneurial spirit and eye for a bargain! Combining the platforms they engage with the most, the ability to maximise their pocket money pots with the added feel-good factor of “doing the right thing” speaks directly to this generation.
Social media platforms, especially TikTok and YouTube, have become the primary channels for Gen Alpha to discover new products and express their creativity. Our findings show that 33% of Gen Alpha would like to buy new things on TikTok and 41% on YouTube, compared to 20% on Instagram.
While the trend of social media platforms becoming hubs for e-commerce is set to have a significant impact on the future of retail and consumer shopping habits, it’s also important to note that Gen Alpha still values the social opportunities offered by the high street, and the physical retail experience remains an important part of the shopping journey for this generation.
Prateek Gupta, Managing Director of Commerce and Retail Media, OMG UK
TikTok’s introduction of a pre-owned luxury marketplace is demonstrative of the growing trust that consumers are placing in the opinions and endorsements of the individuals and creators they follow online. It’s also indicative of key trends we are seeing both in social commerce and the wider retail landscape, including:
The rise of pre-loved luxury. The luxury resale market is experiencing a significant boom of late due to a growing consumer awareness of sustainability, the pursuit of affordability and the ever-present allure of a unique find. TikTok’s move into luxury resale amplifies this trend, making pre-owned and luxury goods more discoverable and accessible to a wider audience.
Convenience and personalisation are redefining shopping habits. Imagine scrolling through your TikTok feed and encountering a perfect pre-owned designer bag being offered by someone with a similar style to you. The familiarity of this social media environment presents a significant advantage for consumers looking for a seamless browsing and purchasing experience.
The convergence of entertainment and impulse buying. The boundaries between social media browsing and shopping are becoming increasingly blurred. Platforms renowned for their engaging, short-form video content can now seamlessly transition users from watching captivating “#OOTD” (Outfit of the Day) videos to directly facilitating the purchase of the featured items. This convergence represents a significant shift in shopping experiences and a great opportunity for brands to meaningfully engage.
Kritika Singh, Associate Director, Strategy at Interbrand
TikTok diving into second-hand luxury isn’t just trendy, it’s a response to a shift in mindset among young consumers.
These days, Gen Z are looking for more than just a label – they want stories, authenticity, and items that aren’t just bought, but cherished. It’s all about finding that unique piece that speaks to them, something that stands the test of time both in style and in story, and is an authentic expression of who they are without harming the planet or its people.
This is not a new conception of luxury, but a return to its historical roots. Across all cultures, the concept of luxury held, at its core, an intentional desire to create and own beautiful things. For example,thee Mughals with their exquisite miniature paintings, the Ming Dynasty’s love for finely crafted porcelain, or even the Renaissance Medici backing artists like Michelangelo. Each one was about investing in something that was meant to last, meant to mean something to them and future consumers of it.
So to stay relevant, luxury brands today need to step up, recognise this shift in mindset, and make it easier for this generation to access and preserve second-hand pieces. TikTok’s move into this space is just one way of doing that, so luxury brands will do well not to overlook the evolving power of social commerce. And they must remember it’s not just about buying and selling; it’s about connecting these pieces with authentic stories, ensuring they last a lifetime and beyond.
