It was Galileo who established that the Earth is round and rotates on its own axis. It is only logical, therefore, that our trade systems and our economies also be based on a circular approach. That said, it was not until the world came to a standstill — for a number of months thanks to a pesky pangolin — that we actually sat up and took notice. As we now know, there is a pre- and post-2020. The past five years have changed the face of the Earth: today we live in a global village whose centre and fringes must be protected without fail. And this requires circularity.
The luxury sector stumbled in 2024, largely due to the increasing popularity of pre-owned goods. According to the benchmark Bain & Company Luxury Study 2024, for the first time since 2008 (excluding 2020 and the COVID-19 period), the luxury goods market declined from $369 billion in 2023 to $363 billion in 2024.
"Our products are inherently made to last, to be handed down from generation to generation." — Helene Valade, Environmental Development Director for the LVMH Group
Pre-owned set to revolutionise the luxury industry
The pre-owned market offers consumers a new gateway to the world of luxury. Watch, jewellery, fashion accessory and ready-to-wear brands are the main drivers of this growth. In response to this new reality, the traditional luxury brands are testing new strategies to control their image and position in this market. The Richemont group took the initiative in 2018 with the acquisition of Watchfinder, the world's leading retailer of pre-owned watches, turning it into a secure, reliable and above all credible platform for watch lovers.
So what effect has this phenomenon had on luxury real estate? "Beyond the financial aspect, UHNWI have made pre-loved a credo," says Thibault de Saint Vincent, President of BARNES. "Entrepreneurs' responsibility is now a lifestyle governed by new keywords: Resell, Repair, Renovate, Rehabilitate, Reuse, Recycle and Reinvent." Across the entire BARNES network, renewed interest has been observed for properties that tell a story, whether a Haussmann apartment in Paris, a riad in Marrakech, a restored century-old farm in Verbier, or a wine-making estate in the Douro.
The tenets of circularity
The UHNWI population can be divided into three main categories (heirs, entrepreneurs and heir-entrepreneurs), each composed of around twenty sub-categories depending on their career development and geographic origin. 2024 was marked by an acceleration in these buyers' need for circularity, accustomed to the tenets of luxury but also eager to give meaning to their spending.