What a Booming Resale Market Means for Your Brand

October 31, 2024

Secondhand fashion is a force. Driven by a confluence of issues, including the economy, a desire for quality and concern about global warming, more consumers are turning to thrifting. And of course, it’s not just limited to Goodwill anymore. Brick and mortar thrift stores are now just one part of the overall ecosystem that includes online peer-to-peer marketplaces like eBay as well as managed sites that handle the legwork and, in some cases, authenticate goods (think TheRealReal). And increasingly brands and retailers have entered the fray, as a way to retain customers and demonstrate their commitment to sustainability.

The global secondhand apparel market is set to reach $350 billion by 2028, according to Thredup’s 2024 Resale Report. Secondhand is growing 3x faster than the global apparel market. Put another way, the company says, 2 in 5 apparel items bought in the last 12 months were secondhand. Young shoppers are responsible for much of this surge with Gen Z nearly twice as likely to shop secondhand as their older counterparts, according to a new Shipstation report.

And shoppers are actively looking for thrifting opportunities. The eBay 2024 Recommerce Report found that the global number of clothing, shoes and accessories sold with “thrifted” in the description increased by over 400 percent in March 2024 vs. March 2023.

The reasons are varied. In some cases, it’s because consumer dollars are stretched, and they see resale as a better value proposition. In others, shoppers feel they can find better quality with resale. Also, some feel they’re able to trade up for items they otherwise wouldn’t be able to afford. Others want to curtail the amount of goods that wind up in landfills. Still others simply enjoy the hunt.

“The question is not should we enter the second hand market, but how,” according to logistics and supply chain solutions company Geodis, calling secondhand “a strategic imperative for apparel and luxury brands.”

To truly capitalize on its potential, the industry must adopt new processes and technologies to foster growth.

For products, that means building items that will last. In short, circular design, product development and material innovation methods must be employed. Apparel company Dôen keeps secondhand in mind when designing each collection. “We create goods with longevity in mind, not just from a product durability and quality standpoint, but also in terms of the design aesthetic, creating classic, timeless silhouettes that really don’t go out of style,” Kristine Kim, the company’s senior director, impact and responsible sourcing said at the Sourcing Journal x Rivet Sustainability LA event last month.

Studies have shown that shoppers are more likely to buy new items if they feel it will hold its value and provide a resale opportunity. Resale value is often also tied to authentication, particularly in the luxury space. This means brands and retailers must up their traceability and transparency tools. Vogue Business reports that some brands like Coach, Tod’s and Breitling are leveraging digital IDs to deliver product, authenticity and sustainability information. With the mandate for digital product passports on the horizon, the industry could leverage this new technology to tie brands to garment owners, whether they’re the first, second or beyond. In some cases, this digital tether could allow companies to profit each time the item changes hands or simply create brand awareness with future owners.

Daniela Ott, strategic advisor of Authentique, told the publication connecting DPPs directly with secondhand marketplaces “provides a huge opportunity for the brands to become part of the conversation about resale and not entirely leave this to third-party platforms.”

In fact, some brands are already finding value in fully participating in the resale space—and a large portion of consumers prefer it that way. Thredup has found that of secondhand shoppers who opt to purchase through the brand directly, more than half report they do so because they trust the brand more than marketplaces. While it may seem risky to offer shoppers a potentially lower priced item alongside full price goods, those that do are reaping the rewards. Home textile brand Coyuchi sells new and resale items side by side on its site and the company told Sourcing Journal that nearly 40 percent of carts feature products from each category. Other brands report that resale helps them capture consumers looking for an entry price point into the brand as well as their full price shoppers who may just need to snag an item they missed out on the first time around.

By considering resale across design, product development and retail, the apparel industry can fuel the already booming secondhand market.

Texworld NYC and Apparel Sourcing continues its commitment to sustainability through the introduction of specialty sourcing categories, under the umbrella of Messe Frankfurt’s Econogy initiative. Designed to reinforce the concept that environmentally responsible practices are economically beneficial, Econogy supports sustainable materials and collections. In an effort to bring more transparency to sourcing, the show will highlight products with the Texpertise Econogy certification with a green booth ID, indicating these materials have been verified by a third party.

Additionally, the show will also bring visibility to deadstock with clearly identifiable booth labels. Buyers will be able to easily identify exhibitors with excess fabric that would otherwise go unused. In this way, Texworld is encouraging the use of surplus and unused fabrics, thereby reducing waste and promoting the circular economy.

The show dates for the summer Texworld shows on both coasts have been announced.

Texworld NYC, Apparel Sourcing NYC, and Home Textiles Sourcing will take place July 22 - 24 at the Javits Center in New York City.

The third annual Texworld LA and Apparel Sourcing LA will take place July 29 - 31 at the California Market Center in Los Angeles. The Los Angeles show makes the buying and educational features of its East Coast counterpart accessible to the West Coast.

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