French luxury group Kering has purchased a 5% stake in pre-owned luxury e-commerce platform Vestiaire Collective, aiming to capitalize on the growing secondhand market.

Kering, which owns fashion houses Gucci and Yves Saint Laurent as well as jewelry labels Boucheron and Pomellato, will also hold a seat on Vestiaire’s board, it said Monday. The funding — contributed together with US-based investment firm Tiger Global Management — was part of a $216 million financing round. It enables Kering to play a part in the rising popularity of the resale sector among milliennials and Gen Z-ers.

“Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers,” said Kering CEO François-Henri Pinault. “Rather than ignoring it, our wish is to seize this opportunity to enhance the value we offer our customers and influence the future of our industry towards more innovative and more sustainable practices.”

The pandemic accelerated the already rapid growth of pre-owned luxury, Kering noted. In 2020, Vestiaire’s transaction volume grew more than 100% year on year. The e-commerce reseller, which was founded in 2009, lists clothing, handbags and jewelry among its offerings.

In 2021, secondhand goods account for 21% of the items in people’s closets, Kering estimated. That number will rise to 27% in 2023, with the pre-owned sector expected to be worth more than $60 billion by 2025, the company explained.