Apparel resale is a robust category centered on the ability to sell and buy pre-worn clothing that is in good condition. Apparel resale is also the experience of seeking and finding unique items that make a personal statement. Plus, there is the “hunt” for the unique gem. In certain stores, apparel retail is known as consignment. Consignment stores tend to pop up in affluent towns.
Anyhow, the idea of shopping for your wardrobe at “resale” options, aka, used clothing, is taking off. Vintage clothing has always carried a certain cachet. But, today’s behaviors go way beyond vintage.
This article is part of Branding Strategy Insider’s newsletter. You can sign up here to get thought pieces like this sent to your inbox.
Recent data indicate that “… more young and middle-aged shoppers” are visiting used clothing stores. “It’s not just the old ladies anymore,” an entrepreneur told The Wall Street Journal.
The Wall Street Journal adds that secondhand stores and secondhand online options are increasingly shopped. The pandemic started the frenzy. All of that free time with your closet. But, today, apparel resale is fast becoming a profitable business.
Gone are the days of rummaging through an Army-Navy store for that pair of navy blue wool button-flap sailor pants with a sailor’s name inscribed with indelible ink or for that used Pea Coat. All those Janis Joplin feathers, beads, boas and silk mules have given way to wardrobe essentials for all members of the family. Secondhand clothes are really rocking the retail boat.
But, more than just a way to shop, indications are that resale shoppers may have an enormous effect on the future of fashion shopping. Brands must take notice now. Not just because consumers are willing to buy used. But, also because your brand could be one of the used items purchased.
The apparel resale category is already full of competitors. Poshmark and ThredUp are already thriving options. In fact, ThredUp “… reported a 95% year-over-year increase in new sign-ups between January and March” 2025.
Urban Outfitters, the retail lifestyle brand that is home to Anthropologie, Free People, Terrain and BHLDN, for example, built its own clothing resale entity, Nuuly Thrift. Rent The Runway is having another moment. After the pandemic put a lid on cocktail dresses and formal gowns, Rent the Runway has been flourishing again. A portfolio of “work” clothing has helped spur re-interest.
Resale apparel shows up in luxury. Kering, the French luxury brand corporation home to Gucci, Yves Saint Laurent, Bottega Veneta, Brioni, Alexander McQueen and Balenciaga, invested in Vestiaire Collective, a high end luxury resale brand. In the US, there is The RealReal, another upscale luxury resale brand.
The Wall Street Journal reported that reductions in consumer luxury spending have been a boon for The RealReal.
“Shoppers are cutting back on purchases of designer handbags and shoes. For luxury resale website The RealReal, that’s a good thing.
“The RealReal’s sales have grown for three straight quarters as shoppers look to the secondhand market to save on high-end wares. The company sells 75% of everything on its resale platform within 90 days, while luxury brands have lost millions of customers over the last couple of years and are selling fewer items. The RealReal is working to keep items selling, and fast, by investing heavily in technology developed in-house that cuts down the time and cost it takes to prepare products, including Chanel bags, Rolex watches and Gucci shoes, for sale.
“’We’re constantly pushing the envelope on what we could use technology for to drive.
efficiencies in our business,’” Chief Financial Officer Ajay Gopal said. “’We have a real advantage in how we can benefit from the advancements in [artificial intelligence].’”
There are many reasons for second-hand clothing purchase behavior.
- Finding that special shoe, vintage dress or unique skirt at an unbelievable price is one reason for apparel resale. Researchers point to the fact that consumers recognize how pre-loved, good condition, possibly vintage, clothing increases in value over time. At some consignment stores, that Armani knit herringbone jacket still has its price tags attached.
- Sustainability is another factor. Many shoppers are sensitive to the environmental harm of fast fashion. Some shoppers are open to taking personal actions to better the planet. There are people who have deep concerns about disposability. Recycling and reselling clothing fits with their unease about waste. One financial advisor points out that some younger shoppers are “…much less concerned about newness than they are with waste….” Patagonia has been on top of this trend for some time. It has been selling its gently used clothing, as has sustainable foot wear brand Allbirds via its Rerun store. However, it is probably a good idea to use caution when considering the sustainability angle. After all, it does boggle the mind to think that all of those H&M, Zara and Shein shoppers have suddenly become sustainability shoppers.
- Inflation, recession and tariffs are other answers. Costs are rising while many people have been unemployed or living on reduced income. Being able to make money by selling gently-used apparel as a side hustle adds to the appeal. Poshmark advertises youthful, style-conscious “entrepreneurs” who seem to make a decent living off of selling their closets. Poshmark highlights the ability to pay for special events such as a wedding or family travel. All you have to do is sell your not-recently-used, pre-loved items. According to one executive, savvy sellers can make around $300,000 a year. This gives sellers the cash to invest in a house or a car. Even after the pandemic has faded, shoppers continue to be worried about continuing price increases on goods ranging from clothing to restaurants. One individual interviewed by The Wall Street Journal indicated that food costs were out of her control. Saving money on clothing was something she could control.
- Finding a retro or vintage outfit that makes a personal statement about the owner’s character is a yet one more possibility. Finding a Fortuny pleated skirt says something about your style quotient.
- Being able to play in a treasure-hunt experiential “game” is another. For generations that grew up with digital gaming, searching for a valuable item is rewarding fun à la RPG. The “find” is definitely something about which to blog. Stores such as Costco and TJ Maxx have incorporated the “search and reward” factor into their strategies.
- Covid-19 was an igniter for apparel resale. Data show that being in lock-down gave people the time to clear out their wardrobes. Receiving money for those about-to-be-discarded clothes makes more sense than throwing these items in the trash. Whether this remains a lasting behavior is questionable.
Apparel resale has the potential to change the future of fashion shopping. Brands in and beyond fashion should take heed.
Second-hand is a growing market that has been followed for the past 5 years. Resale is not about hand-me-downs anymore. Resale is now about hand-it-over. After all, we buy used cars without blinking an eye. Refilling used printer ink cartridges is acceptable. There is still a market for “used” books. And estate-sale jewelry is considered to be just fine.
In its 2020 Top Trends report, Euromonitor International pointed to a segment of buyers labeled Reuse Revolutionaries. Reuse Revolutionaries are those who look to a more circular business model. Recycling plastics, for example, is not as credible an action as it used to be for saving the planet. Reuse Revolutionaries are into “reusing, refilling and renting.” Euromonitor Data showed that globally 54% of those interviewed wanted to make a positive contribution to the planet through their purchasing. Their goal: a waste-free world.
As mentioned, it is probably best to not become too carried away with the idea that we are generating generations of sustainability enthusiasts when it comes to apparel. Data reported in WWD do indicate that pre-owned clothing make a point of reporting their environmental ethos and progress. Sustainability optimists see the circulation of secondhand clothing as the beginning of a new era in environmental and social responsibility. Currently, with a few exceptions such as Patagonia, Stella McCartney and Eileen Fisher, fashion has a poor ecological cred. Brands should probably give more attention to the circular economy. For example, when you tell the Starbucks barista that you are consuming the order in the store, you receive a ceramic cup that does not go into a land fill.
Additionally, the Euromonitor report pointed to the value of personalization as a trend, as well. Personalization has been recognizable for over a decade. For many, good-as-new is no longer a negative descriptor. It is a statement about personal character and beliefs. It is increasingly critical that brands help consumers make personal statements about who they are and their values. It is essential that a brand promise reflect the values of its core customers.
Worn is wonderful not just because people are making money on unused used items. Currently, an Accenture executive agrees. “We are at a tipping point where that remaining stigma (about used clothing) is really going to go away.” Worn is wonderful not just because shoppers can make a purchase of something already in circulation. Worn is wonderful because of the impact it will have on how we consume. In this new future, brands will need to optimize going for the greater social good with personal character and values.
Contributed to Branding Strategy Insider by: Joan Kiddon, Partner, The Blake Project, Author of The Paradox Planet: Creating Brand Experiences For The Age Of I
At The Blake Project, we help clients worldwide, in all stages of development, define and articulate what makes them competitive and valuable at pivotal moments of change. Please email us to learn how we can help you compete differently.
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth, and Brand Education
Post Views: 0
