Second hand apparel sales to double to $350bn over five years 

The global secondhand apparel market is expected to grow three times faster on average than the global apparel market overall over the next five years, with much of that spending coming from younger consumers.

That’s according to the 2023 Resale Report from online resale platform ThredUp, which put global secondhand sales at $177bn in 2022 sales and is forecasting a figure of $351bn for 2027.

Why it matters

A combination of environmental awareness and squeezed incomes is pushing more consumers towards buying secondhand items. But brands also see value in this market: fashion retailers report that sustainability, revenue, and brand loyalty are important benefits of resale. At the top end of the market, resale also helps manage brand image and counterfeiting. 

“When I talk to brands today, it’s not a question if they will be involved in resale – it’s about how,” James Reinhart, co-founder and CEO of ThredUp, told Bloomberg.

Takeaways

• 64% of Gen Z respondents to a GlobalData Survey said they look for an item secondhand before buying it new (up 4 points from 2021).
• 42% of Gen Z is less likely to buy an apparel item if it does not have a good resale value (compared to 23% of consumers overall).
• Almost two thirds of retailers offering resale say this will be integral to the company’s long-term growth strategy.
• The resale trend is accelerating: among ThredUp’s top 100 resale programs, 72 were launched in 2022 and 2023;.

Key quote

“There are so many competing priorities for brands in a low-margin industry … [Resale] can help them with their returns problem, and monetizing items that are slightly damaged, customer acquisition, and loyalty” – Karin Dillie, VP of partnerships at Recurate, a tech startup that helps brands launch resale programs, speaking to Retail Brew.

Sourced from ThredUp, Bloomberg, Retail Brew