Topic of the Week - How Second-Hand Shopping is Changing the Fashion Industry
The fashion industry has long been plagued by waste and excess, with millions of garments ending up in landfills each year. However, a growing trend towards second-hand shopping is changing the game. In this market update, we'll explore the rise of resale and its impact on the fashion industry.
According to a recent report by ThredUp, the second-hand apparel market grew 18% last year to reach a staggering $197 billion valuation. In the US alone, consumers spent nearly half of their clothing budget on second-hand items. These numbers are a testament to the growing demand for sustainable fashion.
So, why are consumers turning to second-hand shopping? For starters, it's a more sustainable option. The production of new clothing has a significant environmental impact, from the harvesting of raw materials to the transportation of finished products. By buying second-hand, consumers can reduce their carbon footprint and support a more circular economy.
Second-hand shopping also offers consumers a more affordable option. With prices often significantly lower than those of new clothing, it's a great way to refresh your wardrobe without breaking the bank.
Several companies are leading the charge in the resale revolution. ThredUp, a popular online consignment store, has been at the forefront of the movement, offering a wide range of second-hand clothing and accessories. Vestiaire Collective, a luxury resale platform, has also seen significant growth, with a focus on high-end designer items.
Other companies, such as Fashionphile and Arrive Recommerce, are also making waves in the resale space. These platforms offer a convenient and curated way for consumers to shop second-hand, often with the added benefit of authentication and quality control.
As the resale revolution continues to gain momentum, we can expect to see even more innovation and growth in the industry. With companies like New Balance and Asics launching their own resale platforms, it's clear that the trend is here to stay.
In fact, a recent petition launched by American Circular Textiles, a coalition of circular economy advocates, is calling for an end to taxation on second-hand apparel. The group argues that the current system, which taxes second-hand items twice, is a barrier to sustainable shopping practices.
The resale revolution is a game-changer for the fashion industry. By promoting sustainability, affordability, and convenience, it's a trend that's here to stay. As consumers become more aware of the environmental impact of their purchasing decisions, we can expect to see even more growth and innovation in the resale space.
So, the next time you're thinking of updating your wardrobe, consider giving second-hand shopping a try. Not only will you be doing your part for the planet, but you'll also be supporting a more sustainable and circular fashion industry.
In other news
Walmart will soon allow third-party sellers to use its supply chain to fulfill orders and manage returns from any e-commerce site via a new program.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Secondhand apparel eCommerce stats
The global secondhand apparel market is projected to reach $243 billion by 2025
Online secondhand sales reached $17.6 billion in 2022, growing by 25% from 2021.
Secondhand apparel sales grew 22% in 2022, outpacing the overall apparel market growth of 5%.
The average price of secondhand items on online marketplaces is $30.
*Statistics sourced from Statista
That’s all for this week…
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