As the global secondhand luxury market continues its rapid ascent, authentication has emerged as the crucial factor distinguishing trustworthy platforms from the rest.

According to a report released on October 9 by Boston Consulting Group and luxury resale platform Vestiaire Collective, the resale market for fashion and luxury items is growing at an annual rate of 10%, outpacing the primary market by threefold. The study predicts that the global resale market could expand from roughly $210 billion today to as much as $360 billion by 2030.

With more consumers turning to pre-owned designer brands, trust has become the cornerstone of the market. “Counterfeit production is becoming so advanced that even luxury brands sometimes fail to detect fakes, occasionally repairing counterfeit items without realizing it,” said Jaewha Choi, CEO of South Korea’s online marketplace Bunjang.

Online forums are filled with cautionary tales of buyers spending thousands on fake Hermès handbags or Rolex Oyster Perpetual watches containing swapped components. Some counterfeits, known as “superfakes,” are so convincing that they reportedly use materials sourced from the same suppliers as authentic products.

Rising demand for authentication

As the resale sector expands, the challenge of verifying authenticity has grown. Historically, the industry has operated under “caveat emptor,” or buyer beware. To tackle increasingly sophisticated “superfakes,” resale platforms are investing heavily in authentication measures.

Singapore-based Carousell opened its first physical store for luxury items in downtown Singapore this year. Sellers can have their items evaluated by professional appraisers before listing them for resale. “Our verification process examines not only the material but also finer details such as stitching and stamping,” said Tresor Tan, Director of Sales, Marketing, and Client Relations at Carousell Luxury.

Tan emphasized the importance of maintaining credibility: “Ultimately, our reputation is on the line. That’s why we provide a money-back guarantee on authenticity.” Carousell has developed a proprietary database covering nearly 500 product styles, with high-value items undergoing multiple rounds of checks. Items with uncertain authenticity are simply not listed.

Similarly, Bunjang has implemented its own proprietary authentication system, combining traditional visual inspections with AI-driven scientific tools trained on hundreds of thousands of data points. According to Choi, the system achieves 99.9% accuracy in verifying genuine goods and continuously adapts to evolving counterfeiting methods.

Verification drives growth

Both platforms report that enhanced authentication has fueled sales. Luxury items now account for more than a quarter of Bunjang’s $1.1 billion annual gross merchandise value. In the first half of 2025, both transactions and total value for luxury goods rose 30% year over year.

While Carousell has not disclosed exact figures, Tan noted that the luxury segment has experienced strong interest and rapid growth. The platform’s evolution, from its 2012 online launch to opening its first physical store, reflects the increasing importance of oversight in high-value transactions. “When someone is buying or selling a $100,000 watch, it demands attention,” she said. Carousell’s store also provides a money-back guarantee and aims to offer “fair value,” even if prices are slightly higher than competitors.

The next generation of luxury consumers

Affordability remains the top reason for purchasing secondhand luxury, cited by 80% of survey respondents in BCG’s report. However, shoppers are also drawn to rare or discontinued items no longer available in stores, according to Samina Virk, Chief Marketing Officer and U.S. CEO of Vestiaire Collective. “These motivations are strengthening over time, demonstrating that secondhand shopping is increasingly becoming a core part of how consumers interact with fashion,” Virk said.

Younger buyers, with limited budgets, are particularly inclined to purchase, enjoy, and resell items quickly. “This remarkable growth reflects a fundamental shift in how Millennials and Gen Z, the upcoming wave of luxury consumers, approach and engage with luxury goods,” Choi added.