Resale, pre-loved, second-hand, vintage, circular fashion, re-commerce – whatever you call it, the clothing resale phenomenon is here and here to stay. According to a new report from resale platform Recurate, Circular Fashion Is Now, the re-commerce/circular fashion market has “benefits without end.”
What’s interesting for fashion brands and retailers is that their items are most likely already part of the resale market, whether they have their own platform for it or not – according to the report, 74 percent of people worldwide already buy secondhand. The question now is how brands can best capitalize on this trend.
“Resale, thrifting and vintage shopping have long been a part of our economy, especially in the fashion world. But today, the confluence of technological, economic and environmental factors has made garment resale increasingly popular. A recent article in Forbes notes that the resale market will double in the next five years to reach $77 billion,” the report reads.
This is based on a survey of 1,000 adults each in Canada and the USA, conducted in March 2022 by the Agency for Sustainability and Social Impact Branding (BBMG). She reached out to a mix of non-active and active recommerce participants, including people who are currently selling, buying, or doing both. The report also drew on data from nine other markets (Australia, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, UK) from the GlobeScan 2021 Healthy and Sustainable Living survey, which surveyed approximately 1,000 adults per market .
Young, urban, female population drives resale trend
According to the survey, typical resale consumers are usually between 21 and 40 years old, live in the city and are female. They buy secondhand but don’t sell. A majority of them earn less than $30,000 a year and only 35 percent have a full-time job.
Resale sellers fall into the same socio-demographic category, but only sell and do not buy second-hand items themselves. Most of them earn between $50,000 and $100,000 a year and work full-time.
There are also so-called “Circulars” who both buy and sell second-hand. They are typically between 18 and 40 years old, live in the city and are female. A majority of them earn between $50,000 and $100,000 a year and almost half of them (49 percent) have a full-time job. 77 percent of them sell used clothes at least once every two to three months and 89 percent of them would buy second-hand branded clothes.
On the other hand, there are non-active people who have neither bought nor sold second-hand items in the last 12 months. You are over 41 years old and live in the suburbs; the ratio of men and women is balanced. Two-thirds of them earn less than $75,000 a year and many of them are retired.
Mid-price segment most in demand
Mid-range brands such as Levi’s, J.Crew, Lululemon and Nike are the most sought-after, ahead of fast-fashion brands like Zara, H&M and Gap, as well as outdoor brands, independent labels and luxury brands.
Overall, second-hand shoppers change their wardrobe 2.6 times more often than non-active shoppers and want their clothes to attract attention twice as often.
The re-commerce potential for brands
Brand-driven re-commerce has great potential for Recurate. After all, one of the main reasons consumers buy secondhand is the opportunity to try a new brand, and the lower price makes this possible. If you like it, maybe a new part will be bought.
For Recurate, a huge opportunity for brands and retailers to acquire new customers and not have to overproduce. “You can produce knowing that any additional demand can be matched by resale,” says Karin Dillie of Recurate. You also avoid discounts at the end of the season.
And eight out of ten respondents (nine out of ten circulars) would trust the brand-driven re-commerce recommended by friends and acquaintances. “While thrift marketplaces like eBay, Craigslist and Facebook are popular, anyone who has used these platforms knows they can also be overwhelming and sometimes untrustworthy,” the report concludes.
“This is where brands can step in to improve the resale experience for their customers while reclaiming the brand experience – not to mention a portion of the resale profit that would otherwise go to the third-party platform.”
A great opportunity for brands, who can choose from a variety of resale models such as peer-to-peer, take-back, swap and more.