Dissecting the Second-hand Luxury Market Dynamics: Insights from E-commerce versus Brick-and-Mortar

Abstract

This study introduces and validates the Network Motifs and Multiple Attributes (NMMA) model, an analytical approach designed to explore and analyze multi-attribute network motifs in the context of secondary luxury products markets by systematically constructing transaction topologies and analyzing interactions through various attributes such as profit, cost, Return on Investment (ROI), transaction frequency, brand, and item type. The model leverages real-world data collected in collaboration with a commercial partner encompassing both e-commerce (EC) and brick-and-mortar transactions. Statistical methods were employed to analyze the validation results, highlighting distinct performance and strategic implications of various trading types in EC versus traditional retail settings Findings suggest a generally higher ROI in EC, attributed to online sales' efficiency and lower operational costs. The study also examines how brand and item types influence consumer purchasing behavior and market trends through network motifs. Applying the NMMA model enhances understanding of market dynamics and supports optimizing business strategies, particularly in improving transaction efficiency and market share.