Second-hand clothing will take 10% of the clothing market

Used clothing that ends up back in stores will take up a 10th share of the global fashion market next year, The Guardian reports, citing a GlobalData report . The growth of secondary goods is associated with the cost of living crisis, as well as with the fact that the business of selling used clothes feels more stable than the usual retailers: clothes that are already loved by someone are guaranteed to be liked by customers - and sell better.

Global sales of second-hand clothing rose 18% last year to $197 billion. A GlobalData report predicts sales will grow to $350 billion by 2028. At the same time, it is already expected that the forecast will come true a year later: the growth of the secondary market is not as fast as expected. Despite this, the second-hand clothing market in the US grew seven times faster than the overall fashion market - where sales remained low throughout 2023.

James Reinhart, co-founder and chief executive of online consignment retailer ThredUp, whose report was also included in the GlobalData report, said the resale market continues to grow in a tough global market because of its resilience and stability - something people can turn to when they need budgets cannot cope with rising prices for utilities and food.

According to him, when consumers are sensitive to high prices, they tend to buy second-hand items. He also stated that not only younger generations are interested in second-hand stores, but also older people.

In addition, the report states that in 2023, more than half of the buyers of the entire clothing market bought something second-hand. Among them, 65% are zoomers and millennials: that is, people from 12 to 43 years old. Two in five, or 38% of shoppers, said they buy second-hand items because it allows them to afford more expensive brands.

Second-hand shopping in European countries has long been moving to an online format - on sites such as ThredUp, Vinted and Depop. Their sales alone, according to the report, will reach $40 billion in the next five years. Older people will prefer going to an offline charity store or a specialized boutique to online shopping.

Children's clothing, which is the fastest growing segment of the market, is being caught up by popular brands and famous designers. They turn to platforms like ThredUp in hopes of reselling items that are sold out in official stores. Buyers, at the same time, come to online platforms to profitably purchase an item from their favorite brand.

The motivation for brands to enter the used clothing market is largely to reduce the waste caused by fast fashion and to make money. According to Reinhart, the second-hand market will only grow because fast fashion products end up in landfills anyway - it's better to resell them.

At the same time, online trading platforms and sellers make virtually no profit from sales. Despite their growth of 51%, online marketplace Vinted posted a pre-tax loss of €47.1 million, while Depop's pre-tax losses exceeded profits - a £59.4 million loss compared to £54.3 million made on sales.

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