🔍 The rise of pre-loved fashion
In 2023, the whispers in the fashion world turned into proud declarations as secondhand clothing sales soared, ready to claim a 10% stake of the global fashion market by next year. Thanks to a crunch in the cost of living and a heightened awareness of sustainability, shoppers are now flocking towards "pre-loved" garments. This trend isn't just a flash in the pan; it's forecasted to balloon to a whopping $350B by 2028, painting a picture of a future where fashion is both chic and sustainable.
🇺🇸 A leap in the US market
The US secondhand market outpaced its global counterparts, growing seven times faster than the entire fashion retail sector, which remained stagnant in 2023. ThredUp's co-founder, James Reinhart, attributes this resilience to the sector's ability to offer value during tough economic times, proving that when budgets tighten, secondhand shopping shines. This isn't just a youth movement; it's spreading across generations, with more than half of all consumers having bought something secondhand in the past year.
📲 Digital platforms drive growth
The surge in secondhand shopping is powered by the ease of digital platforms like Vinted, Depop, and ThredUp, with online sales expected to more than double to $40B in five years. This trend is bolstered by reality TV and influencers promoting secondhand styles, alongside major brands like Selfridges and Primark integrating secondhand sections into their stores. This mass adoption is a testament to the changing perceptions of secondhand fashion from a necessity to a style statement.
💰 The financial dilemma
Despite the booming sales, profitability remains a challenge for online secondhand platforms. Vinted and Depop reported significant losses in 2022, despite increases in sales. ThredUp, however, sees a silver lining, expecting to break even this year as sales continue to rise and profit margins improve. This optimism underlines the potential for sustainable business models in the resale sector, offering hope for a future where fashion is not just about the new but the renewed.
Will secondhand fashion outpace new sales?
