MARKET INTELLIGENCE 54 | JNA Mar/Apr 2022 Buyers’ growing appetite for second-hand luxury items, jewellery included, can also be traced to increased online activity especially during Covid-19 lockdowns as well as mounting preference for sustainable items. “We believe in the power of the circular economy and its environmental benefits: Shop pre-owned,” noted Brown. Pandemic remedy Nicola Whittaker, business development manager at UK-based Fellows Auctioneers, cited a “very strong 2021” for the second-hand luxury market, including the jewellery and watch business. “New customers are bidding in our auctions every day and our jewellery and watch auctions continue to grow,” remarked Whittaker. “Since the start of the pandemic, customers have gotten used to bidding online rather than in person.” Fellows provides high-resolution product pictures, condition reports and descriptions in lieu of in-person viewing by customers before buying – these helped encourage new bidders to participate in the company’s auctions. “Purchasing pre-owned luxury jewellery provides the perfect escapism for people. There is also a big level of excitement about auctions. You never know how much you can pick up an item for, which adds extra intrigue about auctions and their outcomes,” she noted. With digitalisation becoming a larger part of modern business operations and customers’ purchasing journey, the auction market will likely continue being predominately online. “If customers have access to high-quality material so that they do not need to view it physically, then they can easily take part and bid from the comfort of their own homes,” remarked Whittaker. Vickie Sek, chairman, Department of Jewellery at Christie’s Asia Pacific, agreed that the pandemic played a vital role in expediting many businesses’ digital transition. At Christie’s, travel restrictions, lockdowns and events cancellations have sped up the development of its online sales platform, which now provides vast opportunities to present jewellery with higher frequency, wider variety and at broader price ranges. “This subsequently helps us drive a greater number of new and younger buyers who are eager to start collecting via auctions,” she stated. BCG earlier said younger luxury consumers are the largest participants in the second-hand market, with 54 per cent of Generation Z and 48 per cent of millennial luxury customers buying pre-owned goods. According to Sek, buyers look for the following when purchasing pre-owned luxury jewellery: The quality of the diamonds (colour, carat, cut and clarity) or gemstones and where they were mined; design, provenance, brand, condition and rarity. Prospects and challenges Whittaker said Covid-19 continues to pose challenges to the auction sector, but companies are adapting quickly to the new normal. All of Fellows' auctions are now online. “This year, we would like to carry on with our upward trend, attracting new customers to our auctions and providing as efficient as possible a service to all. We received great feedback from our auctions, and we are constantly trying to push the boat out to ensure our customers have the best possible auction experience,” she revealed. Fellows also added more auctions to its 2022 calendar. In 2021, the company held 75 specialist auctions, 64 of which were timed and 11 were live. It also conducted 21 pawnbroker auctions. Sek likewise acknowledged that uncertainties brought about by business restrictions remain. Even when the market has learned to adapt to its new surroundings by bolstering its digital initiatives, in-person product viewing and bidding are still crucial to the auction business. “We remain cautiously optimistic for the market, and we will continue to excel in curating sales for live and online auctions as well as private sales, and in upgrading digital capabilities,” she noted. Brown, for his part, said the second-hand luxury market is poised for further growth over the coming years. The pre-owned luxury jewellery market, in particular, presents myriad opportunities for the consumer. It allows consumers to: Clean out their jewellery boxes of items they no longer wear or perhaps have never worn; sell items they have inherited or been gifted that simply are not their style; or enable that aspirational purchase, perhaps a trade up of an engagement ring or a Cartier LOVE bracelet from an unbranded bracelet. “The pre-owned market in many personal luxury goods enables consumers to find out-of-production pieces or limited editions that are not available in store. As such, resale is sometimes the only way to find certain pieces,” remarked Brown.
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