The second-hand fashion industry is on the rise, and it is no longer considered a ‘poor man’s choice. Brands like Balenciaga and websites like Hardly Ever Worn It are pioneering and leading this profitable industry. 

In fact, Europe's second-hand apparel industry is estimated to reach a value of US$17,329.90 million in 2024. The momentum is forecast to prevail with a CAGR of 7.70%, taking the valuation to a projected US$36,368.10 million by 2034. Following a Statista report, resale surpassed traditional thrift and donation for the first time in 2023, generating 11.9 billion euros versus 11.5 billion euros, respectively.

In light of these facts, no one can deny that there is money in the second-hand market. But why? Why is second-hand growing so much? One of the main reasons for this is a generational shift: Gen Z seems more than ‘okay’ with the idea of buying pre-owned products. That’s why most second-hand transactions are done via e-commerce marketplaces. 

What websites or platforms are leading Europe’s second-hand fashion market? 

In this ‘new sector’—no pun intended—there are only a few websites and e-commerce platforms leading the way. One of them is Vestiaire Collective. Founded in 2009, Vestiaire Collective is Europe’s biggest resale site for luxury fashion, with 25,000 pieces added to the platform every day. As there’s no shortage of choice, search for your favorite brands or the exact piece you’re looking for to avoid being overwhelmed.

Products like Rolex, Dolce & Gabbana, and Versace are sold directly from the owner to new customers using this solution. 

Another long-time second-hand e-commerce solution is Farfetch, which has long been ahead of the game, launching its pre-owned section back in 2010. Fitting in seamlessly with the rest of its offerings, the e-tailer allows you to shop second-hand while enjoying the same luxury experience it provides for those shopping brand-new.

And some other places like Depop - one of Gen Z’s favorite resale sites - were even promoted by Bella Hadid.

Is Europe ready for a secondhand logistic structure? 

Many of the leading logistics and delivery companies have already begun to adapt to the specific needs of this second-hand fashion market. And we say ‘specific needs’ because, indeed, second-hand fashion requires some specific logistics needs, like recovering used products directly from the client to be processed, cleaned, and reviewed by the second-hand marketplace to guarantee their quality or even some specific maintenance required to resell high-ticket products from luxury brands.  

This is why logistic providers are quickly picking up the pace to create specific second-hand solutions and logistic alliances. Thus giving birth to an entirely new logistic infrastructure in Europe. 

Perhaps one of the most well-known cases of this is the DHL and Reflaunt alliance, which we previously covered in Cross Border Magazine. Following a one-year pilot in Europe, the two companies have announced a partnership, with DHL Supply Chain becoming the new logistics provider for the second-hand fashion retail platform.

According to Cathaleen Chen, The Business of Fashion at DHL Supply Chain, the agreement brings unprecedented scale and efficiency to the resale industry, with more than 1,300 warehouses and offices worldwide. "Using Reflaunt's technology and DHL's logistics power, brands have a convenient and fully integrated resale service to provide to their buyers," she said.

Overall, with approximately $49.3 billion (€45 billion) worth of secondhand luxury products worldwide in 2023 — according to Bain & Company estimates — brands and businesses whishing to remain relevant — or even profitable — should start taking into consideration the profitable second-hand market. 

The post Europe's second-hand fashion industry is forecasted to reach US$36,368.10 million by 2034! appeared first on Cross-Border Magazine.

According to a report by US fashion resale platform ThredUp, the global second-hand fashion market is expected to double in size to $350 billion by 2027. In 2023, it recorded revenues of $211 billion.

The report highlights that online sales are one of the main drivers of this market, which is expected to grow by 21% on average over the next five years. Another growth factor is Generation Z, as 56% make at least one purchase a year in online second-hand shops, and 64% look first to see if a product is second-hand when buying it.

However, the study shows how the sector's growth has slowed in recent years and will continue to do so. Peak revenue in the sector was seen in 2022 when it grew by 28%. In the last year it grew by 19%, and by 2024 it is expected to grow by 17% to $240 billion. By 2027, we will see stagnation in its growth, with revenues rising by only 8%.

"We have made significant progress in stimulating circularity in fashion: resale is beginning to flourish globally, and many of the world's largest retailers are adopting more circular business models," explains James Reinhart, CEO of ThredUp. "We are still in the early days of inventing how resale can reduce the current glut in the apparel industry, and I don't see a world where we go back to the way it used to be," he added.

Reasons to choose second-hand products 

Among the main reasons why consumers choose second-hand products are the price of the items, topping the list, and quality. In third place is product selection, followed by convenience and transparency.

In addition, according to the data, 82% of retailers who have started offering resale products expect it to generate a positive ROI. Nearly two out of three retailers who offer resale say their resale investment will increase in the next two years. Even so, almost half of retailers offering resale say that resale may cannibalize new product sales in the short term, but they believe it will bring positive returns in the long term.

The post ThredUp claims the global second-hand fashion market will reach $350 billion by 2027 appeared first on Cross-Border Magazine.

The second-hand luxury goods market in Europe keeps growing strong. With an estimated of around three billion U.S. dollars in 2023, and Central & Western Europe accounting for roughly 62% of the total market revenue, second-hand luxury has become a profitable sector that is pushing some of the leading luxury global brands to try their luck in it. 

According to Statista estimates, the European second-hand luxury goods market is set to see an increase, reaching over 4.6 billion U.S. dollars by 2028. The second-hand luxury market comprises apparel, footwear, leather goods, jewelry, watches, and eyewear purchased via platforms for second-hand luxury goods.

This rise of second-hand luxury products has brought multiple second-hand luxury marketplaces to the game. Among the most popular are: 1stDibs, By Rotation — a fashion rental service — HURR —  a bag rental with resale functionalities via direct messages to the brands  —  and obviously The RealReal, currently the world’s largest online marketplace for authenticated luxury resale, hosting more than 25 million members. 

Second-hand products will keep growing in the EU 

But it is not only the luxury second-hand products the ones getting a lot of love from the EU citizen. All second-hand products — regardless of the category —  seem to have increase their acceptance.  

In a survey of 5,000 European consumers across Belgium, France, Germany, Italy, Netherlands, and Spain, Adevinta found that half (50%) of all respondents plan to spend less this Christmas due to the high cost of living.

As a result, most people (64%) are considering purchasing second-hand items over the festive period this year. The most cited reasons as to why consumers are considering shopping for second-hand items are the need to save money (47%) and a desire to shop more sustainably (37%).

Second-hand gifts are also an option

Last year, nearly one-third (32%) of European consumers turned to the second-hand market for their Christmas shopping needs. The most purchased items were home decorations (45%), gifts for friends or family (39%), and clothing for themselves (36%). Of those considering buying second-hand this year, one-quarter (25%) reported that they like gifting retro or nostalgic items, and a similar proportion (24%) stated they like sourcing items locally.

While many consumers turn to the second-hand market this festive season to cut costs, some hold reservations about preloved gifting. Over a third (35%) of those who did not buy second-hand items last year stated that they prefer to buy brand new, and 40% stated that they don’t want to give used items as gifts.

The post Second-hand keeps growing strong in the EU appeared first on Cross-Border Magazine.

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.

Second-hand clothing market keeps growing 

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.

The post Shein will launch its second-hand clothing platform in Spain appeared first on Cross-Border Magazine.