The latest research shows that as the younger generation takes the lead in the second-hand clothing market, the US second-hand clothing market is expected to reach US$51 billion by 2023.
According to data from the ThredUp online resale platform, in the past three years, the growth of the resale market has been 21 times that of the ready-to-wear retail market. The company’s annual report, based on research data from GlobalData, shows that 56 million women bought second-hand products in 2018, up from 44 million in 2017. The forecast points out that as resale drives this growth, the second-hand clothing market will reach a multiple growth rate within five years from 2018, rising from US$24 billion to US$51 billion.
Neil Saunders, general manager and chief market analyst of GlobalData, said: Compared with the overall garment market, the growth of resale is amazing. We expect this high growth intensity to continue as this market has unique capabilities that meet consumer preferences for variety, value and sustainability.
Millennials and Generation Z are driving the growth of the second-hand market. The report predicts that more than 1/3 of people will buy second-hand goods in 2019.
Among those aged 18-29, about 74% prefer to buy sustainability-conscious brands. Buying a second-hand item reduces your carbon footprint by 82%.
Francois Souchet, director of “Creating Fashion Sustainability” at the “Ellen MacArthur Foundation” added: By increasing the use of clothing, the resale model is playing an important role in creating a sustainable fashion industry. The above plays a key role. Increasing the average number of wears is the most direct way to reduce waste, pollution and capture value.
The report explains that mobile messaging apps and personalization make buying second-hand clothes as easy as buying new ones, while convenience and trust attract a new generation of second-hand buyers shopper.
Therefore, it is expected that the second-hand market will double in the next ten years, and second-hand clothes may account for 1/3 of the wardrobe by 2033.
But as consumers embrace new retail models, department stores will lose more than 50% of their 2008 market share by 2028. In addition, it is estimated that by 2028, the second-hand market will grow to nearly 1.5 times the size of the fast fashion market.
ThredUp is a member of the SwitchingGearEnablingNetwork, which is composed of more than 30 experts and service providers in the rental and e-commerce fields. It is committed to helping brands develop and pilot projects such as New circular business models like e-commerce and leasing.
