The rise of resale is transforming the fashion industry and beyond, making second-hand shopping popular and sustainable. This trend is reshaping consumer attitudes and creating opportunities for brands across sectors to engage in the new circular economy.

For most of my lifetime, second-hand clothing—or second-hand anything, for the most part—was seen as a reflection of affordability rather than sustainability. Used clothing was for those who couldn’t afford new, and hand-me-downs carried the smirch of being “less than.” It was a reflection, not of purpose, but of one’s station in life. This cultural association is perfectly captured in the refrain of “Second Hand Rose”—a song made famous by Fanny Brice in 1921 and reprised by Barbra Streisand in Funny Girl (the story of Brice’s life). “Everyone knows that I’m second hand Rose from Second Avenue”—lyrics that echoed the perception held by generations…of second-hand items being inferior.

But today, we’re witnessing a dramatic transformation. Pre-owned is no longer a dirty little secret—it’s become a conscious, even chic choice. In large part, we have platforms like eBay to thank for conditioning the market. During the late 90s and early 2000s, eBay made pre-owned goods accessible to the masses, helping change how people viewed the value of used items. This set the foundation for the rise of circular fashion and resale, which is now more mainstream than ever.

The resale market for fashion alone is expected to reach $218 billion by 2026, fueled by growing consumer concerns about sustainability and the desire for unique, individual styles. By 2030, second-hand is expected to make up 27% of global wardrobes, driven by increased consumer awareness of sustainability. What was once seen as a stigma is now embraced, and the resale economy is setting new trends in consumer behavior.

Re-Sell-ebration: The Growth of Resale Platforms and Marketplaces
The rise of resale is an industry-wide shift that’s impacting both new and established brands. What was once an unusual niche, often referred to as “Vintage”, is now commonplace. Platforms like Depop, Poshmark, and luxury resale sites like Vestiaire Collective are leading the way in creating value from pre-owned clothing.

These platforms have been central to Gen Z’s embrace of resale. Their marketplace models make buying and selling second-hand clothing as easy as sharing on social media, with a focus on community engagement and personalized style. Depop reported over 30 million users in 2023, highlighting just how far the trend has come. And 75% of its user base is under the age of 26, making it a popular platform for younger consumers.

For high-end fashion, Vestiaire Collective has become a go-to for consumers seeking luxury items with a lighter environmental footprint. In 2023, they partnered with brands like Gucci to offer authenticated resale, underscoring how even the most luxurious names are embracing second-hand as a complement to new collections.

New startups like Relove are emerging with innovative approaches to resale. Relove focuses on enabling consumers to resell their fast fashion pieces through a brand-managed platform, allowing brands to engage with consumers beyond the initial sale.

The Circular Road Less Traveled
The growth of circular fashion is reshaping consumer attitudes toward sustainability, uniqueness, and waste reduction. Platforms and brands are capitalizing on this shift by providing new ways to shop:

Pioneering the resale game, Patagonia’s “Worn Wear” allows customers to buy used items, trading in old Patagonia gear for store credit. In 2023, Patagonia reported a 40% increase in Worn Wear sales compared to the previous year, indicating growing consumer demand for pre-owned outdoor gear. This program has helped position Patagonia as a sustainability leader and expanded the brand’s reach.

Levi’s launched its buy-back program in 2023, offering credit for returned jeans, which are then resold. This approach supports Levi’s sustainability efforts while bringing new customers into the fold.

Partnering with ThredUp, H&M launched its “Pre-Loved” initiative, targeting customers looking for both affordability and sustainability. By leveraging its vast network, H&M is able to capture a new, eco-conscious audience and further its green initiatives.

Re-love Beyond Fashion
The success of resale is not limited to fashion. Other industries have followed suit, extending the ethos of circularity into new realms.

The market for refurbished consumer electronics is expected to reach $65 billion by 2026. Apple’s refurbishment service offers budget-friendly, pre-owned devices with the same quality as new items. This contributes to reducing e-waste while expanding Apple’s reach to budget-conscious consumers. Dell and Samsung have followed suit, creating similar refurbished product offerings that reduce waste and support the circular economy.

IKEA’s buy-back program allows customers to sell back their used furniture, which the brand refurbishes and resells. This initiative helps reduce waste while allowing customers to upgrade their furniture more sustainably.

The automotive industry has long embraced resale, but manufacturers like Volvo have reimagined used car sales by creating Certified Pre-Owned programs with warranties and subscriptions. These initiatives help consumers see used vehicles as a quality option while addressing environmental concerns.

Non-fashion brands can ride the circular wave by following these examples and finding new ways to bring refurbished or used versions of their products to market. Reconditioned tech, reupholstered furniture, and certified used cars aren’t just about being budget-friendly; they represent a commitment to sustainability and a new value-added customer experience.

Embrace the Reuse Revolution
A recent Nielsen survey found that 62% of Gen Z shoppers prefer to buy from sustainable brands, making a case for resale programs as a means to capture environmentally-conscious consumers. Also, McKinsey & Company reports that brands offering a resale model see up to a 30% increase in overall sales, largely due to attracting budget-sensitive customers who later buy new items.

If your brand is considering its entry into the pre-loved universe, there are a few ways to begin.

1. Develop Authentic Partnerships: Work with existing resale platforms (like ThredUp or Depop) to gain expertise and credibility. Gucci’s collaboration with Vestiaire Collective is a great example of how luxury brands can enter the space without building from scratch.
2. Leverage Store Credit Programs: Encourage returns of used items by offering store credit. Levi’s and H&M have successfully done this, creating an incentive for consumers to engage with the brand while supporting sustainability goals.
3. Control Quality and Authentication: Trust is crucial in resale. By taking charge of the refurbishment process, brands can ensure the quality of the pre-owned items. Apple’s “Certified Refurbished” program provides a perfect model for this approach.
4. Create an Engaging Experience: Build an engaging resale experience that feels like an extension of your brand. Make it easy for customers to participate and emphasize the benefits—not just in terms of cost, but also environmental impact.

Final Words: Re-sell and Rise
Resale isn’t just about affordability or finding unique items; it’s about reshaping consumer expectations toward sustainable consumption. Brands that take an active role in facilitating and embracing the resale economy are better positioned to adapt to changing consumer values, build loyalty, and create a new stream of revenue that complements their existing business.

Whether it’s reconditioned tech, pre-owned fashion, or refurbished furniture, the circular economy offers a way for brands to be more than just sellers—they can be facilitators of a more sustainable lifestyle. As we move away from the stigma of “Second Hand Rose” and toward a future of “First-Rate Sustainability,” it’s clear that resale will help drive the future of consumerism.

Sources:

• ThredUp’s 2024 Resale Report
• GlobalData
• Business of Fashion
• Counterpoint Research
• Nielsen
• McKinsey & Company