How can luxury brands leverage NFC technology to generate profits from the secondary market?

According to Bain & Company, the secondhand market for personal luxury goods has grown 9% per year since 2015. In 2018, the commercialization of luxury goods in the secondary market surged to €22 billion, as a result of strong growth in Europe and online platforms.

This represents a significant opportunity for luxury brands to increase their revenue. However, they face a significant challenge: non-existent post-purchase data. With a significant lack of hard data once items have left the store, high-end brands struggle to have a clear overview of how the secondary market operates, and, as a result, profit from it.?

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Rolex is only one example of several high-end brands that has a high resale value. Unfortunately, the company does not have access to information regarding these sales beyond the pricing ranges available online. In other words, they cannot obtain crucial information such as customer insights, behavior, or journey, which are essential to make informed decisions regarding marketing, product design, and cost.?

How to leverage NFC tags?

NFC (Near Field Communication) technology could unlock valuable data from the secondary market. This technology works through NFC tags that are attached to physical items and can be scanned using a device as popular as a smartphone. These tags can help to track items throughout their lifecycle as well as to prove their authenticity.?

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On the one hand, NFC tags provide key information about the secondary market’s preferences that could be leveraged to adjust production and offer tailored products. On the other hand, they create more transparent experiences for customers, as they can learn about the product, including its history, materials, and craftsmanship. ?

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The applications are endless. For example, luxury brands could use NFC tags to design personalized experiences for their customers. This would allow luxury brands to create a deeper connection with their customers and even increase their brand perceived value.?

Cobalt's Solution

Cobalt, a company that specializes in creating blockchain-based solutions for luxury brands, can help companies leverage NFC technology to access data from the secondary market. Cobalt is currently developing a software to create transparent and secure immersive shopping experiences.?

At Cobalt, we expect NFC technology to transform the luxury market and unlock new revenue streams through a new range of customers coming from the secondary market.?

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For collaborations get in touch here.?