How Online Second-hand Platforms Can Increase Loyalty Among Customers Buying Luxury Items

Abstract

This study explores the factors that drive customer loyalty on online second-hand apparel platforms when purchasing luxury items. The luxury second-hand apparel market has gained popularity as sustainable and affordable fashion has become more prevalent and is expected to grow faster than the global apparel market. This study aims to identify key drivers of customer loyalty and investigate how online second-hand platforms can optimize these factors to enhance customer loyalty. The study follows a qualitative method, and the research is based on ten interviews with women from Generation Z who purchased at least one luxury product on an online second-hand apparel platform. Furthermore, the study adopts the research framework developed by Abbes et al. (2020) to identify the crucial factors that shape customer loyalty on online second- hand apparel platforms. The results of this study reveal that trust in the platform and its design are the most critical factors in strengthening customer loyalty to online second-hand platforms when purchasing luxury products. Finally, the thesis concludes by presenting a research framework that refines the model developed by Abbes et al. (2020) to incorporate the unique factors that distinguish luxury purchases on an online second-hand platform. This thesis can assist retailers in enhancing their customer loyalty to create a sustainable competitive advantage in the highly competitive luxury second-hand apparel market.