Shein will launch its second-hand clothing trading platform, known as Shein Exchange, in Europe. As El Economista from Spain advanced, the firm plans to land in Europe in the coming months. "The launch in France and Germany is imminent, and in Spain, it will probably be available in 2024," said Peter Pernot Day, Shein's global director of strategy.
In this way, the firm will compete directly with Inditex, which is also finalizing the launch in Spain of Pre-Owned, Zara's second-hand clothing buying and selling platform, which, according to the Galician group's CEO, Óscar García Maceiras, will be launched in Spain before the end of the year.
Launched for the first time in November last year in the United Kingdom, Inditex's goal is to have the platform available in all its major markets by 2024.
Like Inditex, Shein's goal, as Pernot emphasized, is to "promote the circular economy and reuse, extending the life cycle of products", but also to "take advantage of the strong demand in the second-hand clothing market".
At the moment, Shein Exchange is only available in the United States. The platform works with a system similar to other marketplaces, such as eBay, where consumers themselves manage the process of selling, buying, and shipping items. The company receives 5% of the revenue generated by each transaction, although the maximum prices of each garment will be limited.
Growth in the market for second-hand clothing might outpace fast fashion as more consumers become aware of the environmental, social, and economic benefits of thrift shopping.
In fact, according to Statista, in 2022, the global market value of secondhand and resale apparel was estimated to be worth 177 billion U.S. dollars. This value is projected to rise rapidly in the coming years, almost doubling in size from 2022 to 2027, reaching a value of 351 billion dollars.
The global secondhand apparel market is expected to grow 127% by 2026, three times faster than the apparel market overall, according to a recent report by thredUP, an online consignment and thrift store.
In 2022, the market for secondhand apparel grew 24% from the year before to $119 billion dollars. The report from thredUP shows growth happening worldwide, with North America making up around 42% of the market. Worldwide, the market for secondhand fashion is expected to grow 127% by 2026 to $218 billion worldwide.
