Billion Dollar Circular Fashion Revolution
According to BCG, “today’s secondhand market is estimated at $210 billion to $220 billion and expected to reach $320 billion to $360 billion by 2030. With a 10% annual growth rate, the secondhand market is expanding three times faster than the firsthand market.”
Many luxury brands are turning to brand-owned resale or take-back programs to offset the loss of new collection sales in the age of tariffs.
Luxury Resale Boom
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Burberry launched a resale initiative with Vestiare Collective via Resale-as-a-Service (RaaS), which enables customers to trade in pre-loved Burberry items via Vestiaire in the UK and the US.
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Valentino has a take-back program of vintage archived pieces collected from customers in exchange for store credit.
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Balenciaga partnered with Reflaunt to launch a brand-backed resale program, offering customers the opportunity to drop off pre-owned Balenciaga items at select stores that are authenticated and listed on Reflaunt’s network.
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Gucci partnered with The RealReal for resale and reported the resale value of Gucci clothing as 2.3x stronger than average through the platform.
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Stella McCartney also partnered with The RealReal to develop collaborative upcycled collections.
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Further luxury brands collaborating with The RealReal include Jacquemus and Dries Van Noten to produce one of a kind pieces made from reinvented second-hand pieces.
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Condé Nast recently announced eBay as their official secondhand retail partner in a multi-year agreement that will cover titles such as Vogue, GQ, Vanity Fair, Teen Vogue, and more publications.
KEY PLAYERS IN THE FASHION RESALE MARKET
Image Source: Business of Fashion
Younger consumers are attracted to resale platforms due to affordability, accessibility, and sustainability factors. Shopping circular fashion models supports reducing waste and extending the lifecycle of clothing.
50% of resale market expansion is driven by Millennial and Gen Z’s increasing interest in pre-loved designer pieces and through sustainable and circular fashion trends.
Source: Proficient Market Insights
