The preexisting stigma in secondhand shopping no longer prevails.
The preexisting stigma in secondhand shopping no longer prevails. According to a 2021 report from Thredup, the secondhand clothing market in the U.S. is expected to double in the next five years to $77 billion.
Thanks to increased consumer consciousness around sustainability, the circular economy, and fair labor, resale has become fashion’s hottest sector—and brands want in. But scaling and making resale profitable isn’t easy, and with increasing competition in the space, it’s only going to get harder.
COVID-19 pandemic drove many to clean out their closets and essentially accelerated the growth of the secondhand clothing market. Customers who purchase luxury items have also helped grow the secondhand clothing market as they are driven by fashion and price. Everyone wants to be a part of the secondhand clothing market, even big companies, such as Levi’s and Coach to name a few. Consignment online stores are also popping up everywhere like The RealReal and Fashionpile; where as Poshmark and Tradesy are peer-to-peer marketplaces. (Re)Loved is Coach’s recycled pieces and restored vintage pieces.
Although the trend for secondhand clothing shopping is rising, online shops like ThreadUp, The RealReal and Poshmark have had net losses recently. It takes a long process, strategy, man-power, and marketing to make all these shops stay afloat, as many of them have to intake inventory that needs to be authenticated.