Second-hand fashion is en vogue, especially among Gen Zers. With the help of social media, the perception of buying pre-worn clothes is now seen as cool, and not just for those on a budget.
This new interest in thrifting is spilling over to online channels, with the number of resale sites such as Depop and Thredup that are dedicated to the sale of secondhand clothing growing at a rate.
As the rise of resale continues, huge brands such as Levi’s, New Look and Allbirds are getting in on the act by selling their pre-worn products.
Meanwhile, Retail Gazette revealed last month that fast fashion giant PrettyLittleThing would launch a resale app, PLT Marketplace, in a bid to tap into the growing trend.
And it’s no surprise why. According to GlobalData’s consumer survey, 25% of UK shoppers had purchased clothing, footwear and/or accessories via resale channels in 2021.
This growth looks set to continue. The 2021 Resale Report, produced by US online resale platform Thredup with analysis by GlobalData, found that the resale market is growing at a rate 11 times faster than traditional retail and should be worth $84 billion by 2030.
While buying second-hand was already growing in popularity prior to the pandemic, with current supply chain issues hitting availability and inflation driving up prices, now more than ever shoppers are on the hunt to find resale deals.
Who dominates resale?
Tom Hedges, trends analyst at marketing research specialist GWI, says online is now the go-to place for resale and this is likely to remain the case.
“The pre-owned clothing market has shifted from charity shops and thrifting, to online retail and resale platforms,” he says.
“The pre-owned clothing market has shifted from charity shops and thrifting, to online retail and resale platforms”
And he’s not wrong, in recent years those on the hunt for vintage clothing no longer head to Oxfam or Cancer Research on their local high street – instead apps like eBay are king.
Hedges says that eBay dominates the UK’s resale market, which will come as no surprise to many considering that, according GWI’s latest data, 60% of the nation’s internet users visited eBay in the last month.
However, the marketplace giant has many contenders to its resale throne.
Depop, which launched back in 2011, is growing rapidly with a younger audience. The resale site currently has over 30 million active users with 90% of them under the age of 26.
Meanwhile, US resale platform ThredUp, which does not trade in the UK yet, grew sales 35% to $251.8 million in 2021. The specialist acquired European resale site Remix Global last year and is understood to be targeting expansion in Europe.
Add to that the many brands, from Levi’s to Adidas to PrettyLittleThing, that are launching their own resale sites and eBay has got stiff competition for its resale crown.
The future of resale
With so many new resale options available, how will consumers shop for second-hand goods in the future? Are shoppers likely to gravitate towards one big resale platform or, as retailers launch their own branded offer, will those the hunt for second-hand gems go directly to their favourite brand to shop resale?
Rohini Wahi, senior strategist WGSN Insight says that “armed with many tools at their disposal, consumers will seek out inventory across multiple channels and platforms, opting for a hybrid way of shopping”.
“From mobile apps and marketplaces to stores, social media and resale sites, they will buy from anywhere, ensuring it ties up to their priorities – sustainability, speedy delivery and variety,” he explains.
Matthew Heath, senior marketing director at market intelligence firm IDC Europe agrees, and says since resale is still a relatively new trend for fashion consumers and that customers will shop around to properly familiarise themselves with the different offerings available, at least for the near future.
But can eBay maintain a clear lead over this new generation of resale website?
Hedges explains that younger adults are already starting to expand the list of second-hand sites they use.
“In the UK, the gap between eBay and Etsy, which sells a lot of vintage items, closes with age, and the difference is 22 percentage points among Gen Z.
“This doesn’t mean eBay’s losing relevance; it stands out for its huge collection of refurbished tech and its commitment to guaranteeing the authenticity of luxury products.”
He says that this is important as eBay customers “are more likely to buy luxury brands and to be tech-savvy, whereas Etsy customers are most distinct for being interested in handicrafts”.
Hedges adds other retailers pushing into resale will be able to find their own specialism within the fast-growting market.
GlobalData apparel analyst Pippa Stephens agrees that despite the recent surge in popularity of fashion-specific resale platforms, eBay is still the most favoured online resale site, according to GlobalData’s latest monthly consumer survey.
“To better compete, emerging platforms should offer personalised recommendations and trend edits so consumers can find relevant items more easily, as well as introduce an authentication service for luxury products, to help increase shopper confidence.”
Despite eBay’s dominance, Depop is likely to be amongst the winners in this market. Wahi says: “One element that resonates with Depop’s devoted user base is the app’s resemblance to Instagram – in fact, many sellers cross-advertise between the two platforms to leverage one following for the other.”
“Unlike first-generation selling apps like eBay or Etsy, Depop allows sold items to remain on a user’s profile, creating a digital back catalogue buyers can browse.”
However, as the second-hand market gets bigger, experts believe that the big fashion giants will begin to make their mark in this space.
Heath says he expects “leading fast-fashion retailers with a strong ecommerce presence such as Boohoo, Asos and Zalando will continue to compete for the market by expanding their resale offering”.
With the resale market predicted to grow so rapidly over the next decade, the battle to win market share will be hotly contended. Expect fashion’s behemoths to make big plays in this space to knock eBay off its throne.
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