The estimated value of the apparel, footwear, and accessories resale market is between $100 and $120 billion worldwide—more than thrice the size it was in 2020, according to new research by Boston Consulting Group (BCG) and Vestiaire Collective, a global platform for preowned fashion. The second-hand market is already worth 3 per cent to 5 per cent of this overall sector and could grow to as much as 40 per cent.

The research report, titled ‘What an Accelerating Secondhand Market Means for Fashion Brands and Retailers’, was released recently. It is based on two global surveys of 6,000 consumers conducted in 2020, and 2,000 consumers in 2022, to better understand their engagement with the resale market.

The estimated value of the apparel, footwear, and accessories resale market is between $100 and $120 billion worldwide—over thrice the size it was in 2020, according to a study by Boston Consulting Group and Vestiaire Collective. The second-hand market is already worth 3 per cent to 5 per cent of this overall sector and could grow to as much as 40 per cent.

While resale products make up nearly a quarter of second-hand products buyers’ closets, they are expected to comprise 27 per cent of closets in 2023. Gen-Z consumers are the most apt to both buy (31 per cent) and sell (44 per cent) second-hand items, with millennials close behind, a press release from BCG said.

While affordability was cited as the primary driver for buying second-hand items among more than half of respondents, this trend is declining.

Product variety was reported as the second biggest driver behind consumption of second-hand goods. Forty per cent of buyers view second-hand as their way to consume fashion sustainably, and the same number are choosing this market for the large choice and unique pieces it offers.

Sixty per cent of those selling second-hand items are looking to clean out their wardrobes and make room in their closets. That same number also reported motivation to recover the residual value of their item and either spend it on secondhand (39 per cent) or firsthand (20 per cent) products, or in general (39 per cent).

“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,” said Sarah Willersdorf, BCG’s global head of luxury and co-author of the report.

While selling is an increasingly adopted behavior among buyers, not all buyers have sold items on the second-hand market themselves. Thirty per cent of non-sellers have something to sell but have not been able to find the time to list their items.

In lieu of selling, 30 per cent of respondents prefer to give their items away to friends or charities. A quarter of buyers reported that they would not know what items they would sell from their wardrobes.

Nearly 60 per cent of consumers have either discovered a brand or bought it for the first time second-hand, underscoring the strong opportunity for brands to increase their reach to new customers by participating in the resale market, the study found.

Fibre2Fashion News Desk (DS)