What's Happening?
The resale market in fashion is experiencing significant growth, outpacing the broader fashion and luxury sectors. According to a report, the secondhand market is projected to grow two to three times faster than the first-hand market between 2025 and 2027. Online resale platforms dominate this space, accounting for 88% of resale spending in the U.S. in 2024. The U.S. online resale market is expected to grow by 16% annually, reaching $34 billion by 2027. This trend is driven by factors such as rising primary market prices and consumer interest in sustainability and unique fashion finds. Gen Z and Millennials are the primary consumers, but older generations are increasingly participating. Despite the growth, many fashion brands have yet to fully
capitalize on this opportunity, with brand-led resale making up only a small fraction of the market.
Why It's Important?
The expansion of the resale market presents a significant opportunity for fashion brands to engage with new consumer segments and enhance brand loyalty. As resale becomes more mainstream, brands that integrate resale into their business models can benefit from increased customer acquisition and retention. The resale market also offers a way to reinforce brand perception of quality and sustainability, which is increasingly important to consumers. Brands that fail to engage with the resale market risk missing out on these benefits and may fall behind competitors who are leveraging resale to drive growth and innovation.
What's Next?
Fashion brands are encouraged to reassess their strategies and consider how resale can fit into their business models. Options include partnering with existing resale platforms, using Resale-as-a-Service providers, or developing in-house resale operations. Each approach offers different benefits and challenges, and brands must choose based on their scale, resources, and strategic goals. As the resale market continues to grow, brands that successfully integrate resale into their operations can expect to see increased customer engagement and potentially higher revenues.
Beyond the Headlines
The rise of the resale market also highlights broader shifts in consumer behavior towards sustainability and value-driven purchasing. As consumers become more environmentally conscious, the demand for sustainable fashion options, including resale, is likely to increase. This trend could lead to long-term changes in the fashion industry, with more brands adopting circular business models and focusing on product longevity and recyclability. Additionally, the growth of resale may influence regulatory changes, such as extended producer responsibility, which could further drive the adoption of sustainable practices in fashion.
