The Second Hand Clothing Market Is Becoming Increasingly Large And The Future Market Size May Reach 51 Billion Us Dollars

The second-hand clothing market is becoming increasingly large, and the future market size may reach 51 billion US dollars!

With the advent of the era of consumption upgrading, consumers’ clothing purchasing needs and habits are changing. More and more people are favoring second-hand clothing, creating huge supply and potential for the second-hand clothing trading market.

At present, the second-hand clothing market has gradually developed into a major trend in the clothing market.  According to the 2019 retail report released by the online used clothing distribution company, the growth rate in the United States was three points.  The second-hand market for second-hand clothing has grown over the past three years from $24 billion today to $51 billion in 2023.

South Korea’s second-hand clothing market is also gradually developing

According to a recent report by South Korea’s “Central Daily News”, in South Korea, the main consumer group in the second-hand clothing market is young people in their early 20s.  Those accustomed to the sharing economy are increasingly favoring second-hand clothing, and South Korea’s second-hand clothing market is also gradually developing.  As the main force of future consumption, this group’s preference for the second-hand clothing market is worthy of attention.  This means that not only do they tend to use less money to buy practical, high-quality clothing, but they are also not shy about second-hand products that have been used by others.

“MarketInU” is a second-hand clothing store with three branches in Seoul.  Kim Sung-kyung, the representative of MarketInU, said, “Most of the people who come to the store to shop are customers who want to buy high-quality products at low prices, and young people who are accustomed to the culture of secondary use and sharing.”

Jin Shengjing also said, “For this generation who are more accustomed to sharing than owning, second-hand clothing is just a choice and has no special meaning. Rather than wearing clothing with obvious brand style, they prefer to express their individuality through mix and match  “.

Zheng Ensong, a representative of Millionarchive, another second-hand clothing store, said, “The media constantly reports on celebrities’ wonderful outfits wearing second-hand clothing, attracting young people to look for interesting and unique designs.”  Moreover, purchasing second-hand clothing also satisfies young consumers’ awareness of environmental contribution. As people abandon fast fashion products, which are accused of being the main culprits of environmental pollution, and look for slow lifestyle but valuable “slow fashion” trends, second-hand clothing has begun to attract attention.

More and more clothing brands are entering the second-hand market

The second-hand market contains huge business opportunities, and this industry means huge profits.  For example, last year H&M Group announced that it would launch a pilot project in Sweden to sell second-hand and antique clothing under its brand &OtherStories. The partner of this pilot project is Sellpy, which is creating a “second-hand clothing” section for &OtherStories on its website.

Since 2015, H&M Group has successively invested 50 million Swedish kronor in sellpy through co:lab.  Regarding the continuous increase in the shareholding of sellpy, Nannaandersen, director of co:lab, said: “We have been paying attention to sellpy. We value its unique business model and the similarities with h&m in recycling.”

As Andy Ruben, CEO of Yerdle, a company that specializes in providing technology and logistics services for brand resale projects, said: “This is the biggest opportunity in the supply chain.”

Ruben said: “Our wardrobes are twice as big as they were 30 years ago, but there are more things in the wardrobes and we wear them less. This is a business opportunity.” These barely worn items may  What’s just a clutter in one person’s closet may be a unique find at an affordable price to another.  Creating a one-of-a-kind rotating wardrobe is attracting shoppers in droves.

Wells Fargo analysts wrote in a report released not long ago: “In recent years, the retail industry has successfully dealt with a variety of influencing factors, such as price declines, fast fashion, and e-commerce. We believe that another key influencing factor is  Emerge: the resale market.” Wells Fargo said the luxury market has been most severely affected by the resale market, with companies like TheRealReal, an American second-hand luxury resale site, able to buy second-hand luxury goods at discounted prices and introduce brands to new people. customers, and the ability to earn residual/resale value also drives more sales through primary channels.  RealReal currently has 9 physical stores in the United States.

This partly explains why in the past year, the second-hand luxury goods market has become one of the keywords that luxury brands are most concerned about following digital transformation.

At the end of last year, TheRealReal released a latest report on the resale value of luxury brands through analysis of the platform’s own data and statistics on luxury brand prices.

The report shows that French luxury brands Hermès, VanCleef & Arpels (Van Cleef & Arpels), Italian luxury brand Gucci and luxury down brand Canada Goose are the brands that consumers are most optimistic about in the second-hand luxury market. In terms of resale value, they were also the most popular brands last year.  Top performing brands.

In the women’s market, Hermès ranks first on the list of the most valuable second-hand luxury goods with its three series of Birkin, Kelly and Constance handbags. The resale value of these handbags increased by 7% year-on-year last year.  Other star series of bags include Goyard, which has a resale value of 80%, and some series under the Moncler brand have a resale price of up to 90% of the original price.

Male consumers also contribute significantly to the second-hand luxury goods market.  In the men’s category, luxury down brand Canada Goose topped the list, with resale value increasing to 82%.  Trendy brands are still the backbone. Among them, the resale price of Off-White, one of the popular brands, has increased by 12% year-on-year, and the resale value of Off-WhiteXNike sneakers far exceeds the original retail value.

There is also an awakening in the secondary market for high-performance sportswear that can withstand wear and tear during exercise.  Outdoor luxury brands Patagonia and R.E.I., known for their stewardship of the environment and commitment to getting people involved in outdoor activities, also sell pre-owned items.

In addition to selling used gear, R.E.I. also has a rental program, which has been expanded in 2019 to include products such as ski boots, snowboards and camping equipment.  The project aims to provide products for all consumers who participate in outdoor activities, whether they just want to try before buying, or because they cannot afford it, or travel too frequently, leasing or buying second-hand is more practical than buying new.

“Essentially, we are experiencing and sharing professional outdoor knowledge,” said Eric Artz, interim president and CEO of R.E.I. “As long as we stay focused on that and meeting our customers’ needs, we will find ways to do good for our customers and the planet.”  ”

Strong demand for second-hand clothing unleashes huge market potential

The 2019 resale market report of ThredUp, an American second-hand clothing consignment website, pointed out: “The second-hand market will surpass the fast fashion market within 10 years.” It estimates that by 2028, the second-hand market will grow to nearly 1.5 times the size of the fast fashion market.  Because resale is taking share of the retail market.

Neil Saunders, General Manager and Chief Market Analyst of GlobalData, said: Compared with the overall ready-to-wear market, resale growth is astonishing.  We expect this high growth intensity to continue as this market has unique capabilities that meet consumer preferences for variety, value and sustainability.

Data shows that the global second-hand luxury goods trading market reached nearly US$25 billion in 2018 and is still rising.  German financial institution Berenberg has predicted that this category will continue to grow at an annual rate of 10% in the global market in the future, which may be more than twice the growth rate of the luxury primary market.

ThredUp, an American second-hand clothing consignment website, predicts that the second-hand market will reach US$51 billion by 2023, much higher than the US$24 billion in 2018. One-third of Generation Z will buy second-hand items in 2019.

A report by ThredUP and retail analytics company GlobalData shows that by 2028, about 13% of the clothes in women’s wardrobes may be secondhand, compared with only 6% in 2018.

Under the trend of sharing concept, the development of second-hand clothing market is unstoppable.