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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DHL joins the second-hand fashion market alongside Reflaunt. 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.

Specifically, DHL Supply Chain will manage the logistics process on behalf of Reflaunt, from the management of items received at customers' homes, including inspection, sorting, photography, and digital input to Reflaunt's proprietary digital platform, to the core logistics functions of inventory management, warehousing, picking and packing, and distribution.

With Reflaunt and DHL, the new brands will be able to bring e-commerce and resale operations under one roof while expanding their circularity efforts globally, they said. DHL will also support both of Reflaunt's business channels: the concierge service, which was developed for luxury brands and retailers, and the returns service, which was created for all fashion brands.

Net-a-Porter and Balenciaga pioneering Reflaunt 

The program is already in place with some brands, such as Net-a-Porter or Balenciaga, with concierge and return services integrated into a European DHL warehouse operation.

Earlier this year, Reflaunt also announced a partnership with recycling startup SuperCircle to provide an end-of-life solution for items that cannot be resold in the marketplace.

Sustainability is high on DHL's agenda. The company is investing heavily in electrified vehicles to support the growth of e-commerce, as well as sustainable aviation fuels, upgraded and fuel-efficient aircraft, and even electric planes.

The post DHL and Reflaunt join forces to conquer the second-hand fashion market 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.

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