Dive Brief:
- Online luxury accessories reseller Rebag has launched a membership program that offers members prices that are up to 10% lower and allows for all of a customer’s membership fees to be applied to credit for purchasing, per a Thursday press release.
- Members must pay a minimum of $50 per month for 12 months or a one-time fee of $500 to join the program, called Rebag+. They can skip a month but must get to the $500 threshold within 12 months. Contributions are 100% refundable if a customer decides they no longer wish to participate or don’t reach $500.
- The full membership fee converts to credit toward future purchases, and sellers who join the program can earn up to 5% more when selling on Rebag, per the release.
Dive Insight:
While there are a number of membership programs within the luxury resale market, Rebag+ seeks to stand out by offering shoppers bonus credits for every month they contribute, with all customer account credits going towards future purchases. The company said in the release it would add a 2% monthly credit bonus to customer accounts, increasing program credits “up to 27% more” over a 12-month period.
“Rebag+ represents a game-changer for the industry,” Charles Gorra, founder of Rebag wrote in an email to Fashion Dive. “It's not just about helping members easily save for a future purchase or offering exclusive benefits; it's about fundamentally reshaping how we view luxury resale. By empowering our customers with flexible contributions, significant bonuses, and unparalleled benefits, we're not just setting a new standard — we're redefining what it means to elevate the luxury resale experience.”
The concept for Rebag+ came about as brand executives spoke with consumers to see what would incentivize them to purchase products, according to Elizabeth Layne, chief marketing officer for Rebag.
“This came from us chatting with customers,” Layne said in an interview. “Of course, everyone is looking for a deal. Even at our high price point, they’re still looking for the best value.”
While some luxury businesses are seeing a slowdown, resale is gaining ground. According to the ThredUp 2024 Resale Report, U.S. consumers spent almost half of their 2023 clothing budget on secondhand items.
Founded in 2014, Rebag trades and sells designer handbags, fine jewelry, watches, and small leather goods. The company says it targets a niche audience looking to purchase and sell high-end fashion labels, including Louis Vuitton, Chanel, Gucci, Hermes, Christian Dior, Fendi and Prada.
“With elevated pricing strategies at many fashion houses, consumers are increasingly embracing pre-owned luxury for affordability, sustainability, and unique finds,” Nora Kleinewillinghoefer, partner and luxury retail lead at Kearney, said in an email to Fashion Dive. “For frequent buyers and sellers, membership programs can offer significant savings and perks, but casual participants need to weigh the cost-benefit over time.”
