Fashion resale market trebles in 3 years

PARIS – The value of the global fashion resale market has tripled since 2020, according to a new report. The estimated value of the market is US$100bn-US$120bn worldwide, more than three times the size it was in 2020, according to research by Boston Consulting Group (BCG) and Vestiaire Collective, a global platform for preowned fashion.

The global second-hand fashion market is worth 3 per cent to 5 per cent of the overall apparel, footwear, and accessories sector and could grow to as much as 40 per cent, claims the report. While resale products make up approximately one quarter of second-hand products buyers’ closets, they are expected to comprise 27 per cent of closets in 2023 if current buying trends continue. Gen-Z consumers are the most likely to both buy (31 per cent) and sell (44 per cent) second-hand items, with millennials close behind.

“At BCG, we have been analyzing the global resale market in detail since its infancy,” said Sarah Willersdorf, BCG’s global head of luxury and co-author of the report. “It is now certain that consumers have embraced second-hand and it’s changing the way they buy and sell their clothes. There is a tremendous opportunity for brands that enter this market to capture new customers while also appealing to existing shoppers motivated by sustainability, affordability, and exclusivity.”

The report is based on two global surveys of 6,000 consumers conducted in 2020, and 2,000 consumers in 2022, to better understand their engagement with the resale market. While affordability was cited as the primary driver for buying second-hand items among more than half of respondents, this trend is declining. Product variety was reported as the second biggest driver behind consumption of second-hand goods. 40 per cent of buyers view second-hand as their way to consume fashion sustainably, and the same number are choosing the second-hand market for the large choice and unique pieces it offers. The thrill of the hunt and opportunity to barter with sellers are also increasingly popular factors for purchasing second-hand clothing, with 35 per cent of survey respondents reporting them as their driving forces.