A joint report by Boston Consulting Group (BCG) and resale platform Vestiaire Collective has cemented the impact of the secondhand fashion and luxury market as it appears to only continue going upwards.
According to the duo’s report, ‘What an Accelerating Secondhand Market Means for Fashion Brands and Retailers’, the estimated value of the apparel, footwear and accessories resale market is between 100 and 120 billion dollars worldwide, more than triple the size it was in 2020.
It further stated that the secondhand market is already worth three to five percent of the overall apparel sector, yet it could grow to as much as 40 percent.
The report, which is based on two surveys in 2020 and 2022, predicted that resale products are expected to comprise 27 percent of closets in 2023, largely driven by Gen Z consumers, closely followed by Millennials.
“A tremendous opportunity for brands…”
In a release, Sarah Willersdorf, BCG’s global head of luxury and co-author of the report, said that the consulting agency has been analysing the global resale market since its origins.
She continued: “It is now certain that consumers have embraced secondhand and it's changing the way they buy and sell their clothes. There is a tremendous opportunity for brands that enter this market to capture new customers while also appealing to existing shoppers motivated by sustainability, affordability and exclusivity.”
The report went on to state that affordability was consumers’ driving factor when buying secondhand items, however they were also motivated by product variety and sustainable consumption.
For sellers, 60 percent said they were selling as a means to clean out their wardrobe, with the same number also looking to recover the residual value of their items.
Many of those interested in selling, 30 percent, said they had items to sell but haven’t been able to find the time, while 25 percent said they wouldn’t know what items they would sell.