Navigating the Pre-owned Paradox: Digital Marketing Innovation and Strategic Synergy in the Luxury Sector

Abstract

Against the backdrop of the circular economy and digital acceleration, luxury brands face the imperative to reconcile digital growth with secondary market dynamics. In today's world, where digital technologies are widely used, and the idea of the circular economy is becoming more mainstream, luxury brands are dealing with two big problems: they need to update their marketing strategies and at the same time, deal with the secondary market. Using the example of Burberry, this paper investigates in a qualitative way what measures luxury brands can take to jointly develop with the second-hand market by means of strategic modifications in the context of digital transformation. The analysis of the data reveals that brand collaborations and limited-edition marketing efforts are effective avenues in boosting brand awareness through digital media. These include the dilution of core brand heritage through overexposure, channel conflicts arising from unregulated resale price erosion, and a trust crisis fueled by authentication deficits. Consequently, this paper proposes an integrated management framework encompassing blockchain-enabled authentication, selective collaborative curation, and a closed-loop product lifecycle strategy. This study provides actionable insights for luxury managers seeking to harmonize digital innovation with sustainable brand value retention.