Fashion resale, encompassing the buying and selling of pre-owned clothing and accessories, has surged in popularity, especially among younger consumers who prioritize sustainability and affordability. With insights from a McKinsey 2023 report revealing that 63% of consumers prioritize sustainability in their purchasing decisions, it's evident that resale is no longer a niche market but a mainstream trend reshaping consumption models. In this overview, we'll delve into the key trends, challenges and opportunities, driving the fashion resale industry. From analyzing consumer behavior to uncovering emerging market dynamics, Oly’s goal is to provide you with valuable insights that empower your success in this ever-evolving sector.
The fashion resale market is witnessing unprecedented growth, fueled by changing consumer preferences and a growing awareness of sustainability. According to a report by Statista, in 2022, the estimated global market value of secondhand and resale apparel stood at a substantial $177 billion USD. Projections indicate a rapid ascent in the coming years, with the market expected to nearly double in size by 2027, reaching an impressive value of $351 billion USD.
One of the key drivers behind the success of the fashion resale industry is the shifting attitudes towards sustainable fashion. Today's consumers are more conscious than ever about the environmental impact of their purchases, leading to a surge in demand for pre-owned clothing. From a consumer perspective, it's evident that the secondhand market continues to ascend, with an increasing number of individuals opting to fill their wardrobes with pre-owned fashion items. This expansion is due, on one hand, to a rise in the number of customers embracing secondhand purchases (+ 10 millions of new shoppers between 2018 and 2019), and on the other hand, to an uptick in the volume of secondhand pieces consumers are acquiring. Together, these trends forecast a notable surge in the proportion of secondhand clothing in people's closets.
The rise of the secondhand fashion market can be mainly attributed to younger consumers, with Generation Z and millennials showing the highest propensity to purchase pre-owned clothing, as highlighted by a global survey conducted in 2021 by Statista. For this demographic, second-hand shopping represents an attractive option due to its affordability and environmental benefits, aligning with their concerns about sustainability. Moreover, the reduced prices of pre-owned garments have democratized access to fashion, allowing individuals to afford items that would typically be out of their budget range. Consequently, there has been a notable expansion in the resale market for personal luxury goods.
Online resale platforms have emerged as pivotal players in revolutionizing the fashion resale industry, offering convenience, accessibility, and a diverse array of pre-owned fashion items.In 2021, online resale accounted for 69% of the overall resale market, up from 40% in 2019, as reported by the Fashion Resale Market Report; and we can only assume that they will continue to grow as the secondhand fashion market expands, driven by shifting consumer preferences towards sustainable and accessible shopping options.
Poshmark has carved a niche for itself as a social marketplace, blending the traditional e-commerce model with social networking elements. Indeed, Poshmark reported over 80 million active users and $4.2 billion in gross merchandise value (GMV) in 2021, reflecting its continued expansion and influence in the fashion resale space. Poshmark stands out as more than just an online marketplace; it's a platform that empowers individuals to transform their love for fashion into a real reselling business by offering a unique avenue for entrepreneurial success. For instance, it provides built-in marketing tools such as Posh Parties and social sharing options, helping sellers increase visibility for their listings and attract potential buyers; the platform also offers detailed analytics and insights into sellers' performance, including data on views, likes, and sales. Finally, Poshmark handles shipping and logistics seamlessly, providing pre-paid shipping labels and packaging materials to simplify the fulfillment process for sellers.
Grailed has emerged as a prominent player in the fashion resale market, particularly renowned for its specialization in menswear and streetwear. With a community of over 7 million users worldwide, the platform has established itself as a go-to destination for both buyers and sellers seeking exclusive and niche fashion pieces. Statistically, Grailed boasts millions of listings, offering a diverse range of curated items spanning from coveted streetwear brands to high-end designer labels. The platform's user-friendly interface and robust features have contributed to its popularity, facilitating seamless transactions and fostering a vibrant community of fashion enthusiasts. Discover additional guidelines for successful selling on Grailed as a fashion reseller in the article below: How to sell on Grailed as a resale business?
Vinted has garnered substantial popularity across Europe and beyond, providing a seamless platform for the exchange of secondhand apparel. What sets Vinted apart is its commitment to affordability, as it imposes no listing fees and maintains low transaction fees. This cost-effective approach appeals to both sellers and buyers, positioning Vinted as a compelling choice in the competitive fashion resale landscape, particularly for luxury items. While initially focused on mainstream secondhand fashion, Vinted has recently ventured into the luxury resale market. The platform's introduction of an authentication service marks a significant expansion, opening doors to a wider range of high-end products. With this move, Vinted retains its competitive edge, offering unique advantages that other marketplaces may find challenging to match.
Moreover, Vinted has placed a great emphasis on the importance of the pro reseller status on its platform. As a professional fashion reseller, you can now subscribe to a Vinted Pro account for free, enabling you to sell high volumes on the platform with the same advantages as other users in terms of shipping options, except that you gain access to extra features to attract more buyers and sell fast.
Oly can assist professional resellers in automatically connecting their e-shop catalog, on Shopify or WooCommerce, to their Vinted account through integration features. Oly synchronizes their inventory management systems with their Vinted profiles, ensuring seamless updates of product listings, inventory level, and pricing. This automation streamlines the process for resellers, saving them time and effort while maintaining consistency across platforms. Overall, Oly offers a solution to professional resellers looking to efficiently manage their inventory and maximize their presence on the Vinted platform.
Vestiaire Collective has solidified its position as the top destination for luxury resale. With a rigorous authentication process in place, Vestiaire Collective guarantees the authenticity of every luxury item listed on its platform, instilling confidence in buyers and enhancing the overall shopping experience. In a strategic move to further bolster its dominance in the luxury resale market, the French online platform recently made its first acquisition in the US with the purchase of its competitor, Tradesy. This acquisition reinforces Vestiaire Collective's status as the premier platform for luxury pre-owned items, while also expanding its visibility to the American market.
Selling on Vestiaire Collective as a professional reseller offers global exposure to a wide audience of vintage lovers - leveraging Vestiaire Collective enhances brand visibility and credibility within the fashion industry thanks to the platform's streamlined processes and established reputation. Additionally, the platform provides essential tools for professional resellers to streamline their inventory management with automated listing capabilities, making it possible to connect automatically the e-shop listings from Shopify, Woocommerce or other CMS, to Vestiaire Collective. For further details, please reach out to the Oly platform.
If you are a fashion resale business using Vestiaire Collective, here are some tips and tricks for professional resellers to grow your sales on Vestiaire Collective.
Quality control and authentication issues persist as significant challenges within the fashion resale market. In particular, maintaining authenticity, especially in the realm of luxury resale, remains a real concern. The emergence of counterfeit goods and the sophistication of counterfeiters further exacerbate these challenges, highlighting the need for robust authentication processes and diligent quality control measures across all resale platforms. Ensuring the legitimacy of pre-owned luxury items remains a significant barrier for some consumers when considering secondhand fashion purchases, mainly when it comes to luxury pieces. Therefore, as professional fashion resellers, it is crucial to prioritize understanding the background of each product and ideally provide certificates and other tangible proof of authenticity to instill confidence in potential buyers. To address this challenge, online platforms like Vestiaire Collective and Libas are leveraging expert teams and/or AI tools to efficiently establish the authenticity of products listed on their platforms. Furthermore, a multitude of online services globally offer similar authentication services. For comprehensive guidance on authenticating your products, refer to the following article: Ensuring Authenticity in Secondhand: Essential Websites and Applications for Authenticating your Luxury Item
While the fashion resale industry presents lucrative opportunities, it also comes with its own set of challenges. From inventory management to pricing and authentication, resale professionals face numerous hurdles in running their businesses efficiently, especially when listing single-SKU items across several marketplaces at the same time. Fortunately, innovative solutions like SaaS inventory management platforms offer a lifeline for fashion resale businesses. According to a study by McKinsey & Company, businesses that adopt digital solutions can increase productivity by up to 45% and reduce operating costs by up to 20%.
Efficient inventory management stands as a key element of success in the fashion resale market, offering the capability to streamline operations through automation and maximize profitability. Oly, a digital service tailored specifically for fashion resellers, can be a transformative solution to address inventory management issues within this industry. Oly offers a centralized platform for resellers to manage their entire inventory in real-time. This enables resellers to easily list across several marketplaces, ensuring optimal inventory control and accuracy throughout the resale process. Oly facilitates cross-listing management, allowing resellers to seamlessly synchronize their inventory across multiple marketplaces such as the previously mentioned ones :, Vestiaire Collective, Vinted, eBay, The Vintage Bar, Joli Closet, Grailed. This seamless integration eliminates the need for manual data entry, significantly reducing the risk of overselling or discrepancies between platforms. As a result, operations are streamlined,empowering resellers to effectively manage their inventory and concentrate on sourcing products and driving sales.
As we look to the future, the outlook for the fashion resale industry appears promising. The fashion resale industry is undergoing a revolution, driven by changing consumer preferences and a growing demand for sustainability. With continued growth and innovation, resale businesses have the opportunity to reshape the fashion landscape and drive positive change. By understanding market trends, embracing technology, resale professionals can position themselves for success in this dynamic and ever-evolving landscape. At Oly, we are committed to supporting fashion resale businesses with innovative solutions that empower them in the dynamic landscape of fashion resale.
