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. 

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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.

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