The Future of Second-Hand Retailing

The modern luxury industry did not see this coming. The secondhand market rewrote the rules, and it's time for brands to recognize the cold, hard facts. "In 2024, it hit an estimated €48 billion, growing 7% year over year — actually outpacing the sales of new luxury goods. That's not a small trend; that’s a full-on shift." Source: Bain and Co Hard luxury (meaning watches and jewelry) continues to dominate, making up about 80–85% of total second-hand sales. Jewelry is exploding, but even secondhand apparel is picking up speed. Secondhand has become the gateway into luxury for new, aspirational buyers. When their dream product feels out of reach at retail, resale offers the perfect, accessible alternative, and not just for budget reasons. Brands are catching on. Instead of fighting it, some brands are launching their own platforms and rethinking their brand as an ecosystem rather than a single sale. I truly believe the brands that master resale, authentication, and inventory control will be the ones who build deeper, longer-lasting customer relationships. The future of luxury isn’t just about selling new, it’s about engineering value across a product’s entire lifetime.

It’s been a rollercoaster week in retail. But there’s a silver lining. Here’s what I’ve heard from retail CEOs all week: don’t let a crisis go to waste. Yes, this is a scary moment for brands. Even if the tariffs get completely reversed, there is still huge uncertainty around the future of trade. But company-defining innovation often happens in moments of turbulence and chaos. Now is the time to diversify your revenue and shift the fundamentals of your business. And I can’t help but put forward the case for brand-owned resale. Instead of 100% reliance on new product imported from overseas, why not create a big, profitable revenue stream from the items already in the US, just waiting to be given a second life? 🟢 Enjoy zero tariffs on resale: These products are already made— sitting idle in brand warehouses or customer closets—so they’re not subject to import duties. 🟢 Keep price sensitive customers: 59% of consumers say that if new government policies around tariffs and trade make apparel more expensive, they will seek more affordable options like secondhand. If you don’t own your resale channel, you will lose that 59% to third party marketplaces. 🟢 Meet customers where they are: The resale market grew 5x faster than the broader apparel market in 2024. 🟢 Grow, even in a tough market: Resale is a resource-light way to grow both top and bottom line—quickly. Resale isn’t just a nice-to-have. In today’s climate, it might be your strongest hedge.

Are tariffs the great accelerator to resale like COVID to eCommerce? Roughly 95% of apparel sold in the U.S. is imported, with 30% coming from China. These new trade measures will raise costs for brands, squeeze margins, and ultimately drive retail prices higher for consumers. It is going to be rough water for a while. But as Thomas Shelby from Peaky Blinders put it, “every catastrophe comes opportunity.” The dire situation opens up a growing opportunity: Resale According to ThredUp’s 2025 Resale Report: 59% of consumers say they’d consider buying secondhand if retail prices rise due to tariffs The U.S. secondhand apparel market grew by +14% in 2024, 5x faster than traditional retail It's projected to reach $74B by 2029, growing at an average of +9% per year In the past, nearly half of retail executives said their organizations have deprioritized circular models like resale because customers aren’t asking for ESG-focused initiatives. This is starting to shift. Resale isn’t just about sustainability anymore. It’s becoming a strategic revenue channel that can drive loyalty, attract value conscious shoppers, and offset margin pressure. Example of leading brands/retailers seeing results recently: 🧘♂️ Lululemon’s “Like New” program delivered 2x customer retention compared to traditional shoppers 👗 M.M.LaFleur’s “Second Act” resale initiative saw 50% YoY growth after being integrated into their homepage 🏄♂️ Faherty Brand’s resale program is already ROI positive 👓 Urban Outfitters launched Reclectic, a 40,000 sq ft resale concept blending secondhand, rental returns, and sample stock, a signal that resale is no longer on the sidelines. Demographically, 62% of Gen Z and Millennials check the resale value before purchasing new. That means resale isn’t just about post-purchase; it’s shaping primary market behavior. While some brands scramble to rework supply chains, I believe others will seize this moment to scale resale and meet their customers where they’re headed. What are the best technology tools to help brands start or grow resale? #tariffs #ecommerce #brands #strategy

👚 ThredUp's Annual Resale Report is always a goldmine of insights for the secondhand & sustainable fashion space — and this year was no exception. With 15% year-over-year growth in the global secondhand market and resale growing 8X faster than the broader retail market in the US, secondhand fashion has become un-ignorable for the fashion industry, whether you're part of the secondhand market or not. Here were my main takeaways from the report: 1️⃣ Secondhand has reached a key tipping point The report revealed that more consumers than ever shopped secondhand apparel last year (58%) and about half of younger generation consumers look secondhand *first* for apparel. ✨ I don't think that stat can be underestimated — among younger demographics, the *majority* are now shopping secondhand first. ✨ 📌 Whether a brand is integrating a resale arm or including curated vintage finds in-store, integrating secondhand in some form — if not several forms — is becoming table stakes for fashion brands, even outside of the sustainability space. 2️⃣ Resale value as a key decision factor About half of consumers now say that resale value is "an important factor when it comes to purchasing new apparel". And 41% of younger customers say they would be LESS likely to buy apparel *without* good resale value. Though intentions can often differ from action, the percentage of people actually reselling their clothes last year grew too, ThredUp reported. The percentage of younger shoppers reselling apparel went up 6 points in 2024. 📌 People are increasingly thinking of their clothes and fashion choices as investments which has implications for the resale market and for fashion brands. This makes quality a more important factor, but brand reputation & perceived brand value may matter even more. 3️⃣ The secondhand shopping experience still has room to improve ThredUp reports that 40% of shoppers are overwhelmed by the sheer volume of items available secondhand. But respondents said that personalization, improved search, and discovery is making it easier. 70% of retail execs say they're turning to AI to make secondhand more appealing to customers. 📌 Some customers like the thrill of the hunt, but others appreciate a more streamlined experience. If your secondhand customer is the latter, consider the power of curation for brand-owned experiences whether in-person or online. And ensure your website (or product listings on a resale platform) are optimized for AI-powered search, which seems to be coming our way whether we want it or not. ⤵️ What are your thoughts on ThredUp's Resale Report? Where do you think secondhand — and its role in the fashion industry — is headed from here? ************ For more sustainable fashion industry insights & updates like this, join Conscious Fashion Collective's weekly newsletter! 📧