STATUS
The global market for resale, or resale, of clothing, footwear and accessories has been developing very dynamically in recent years and has become a real and capacious segment of the fashion industry. Today, it accounts for about 7-8% of the global clothing market and, according to forecasts, by 2027 the share of resale will grow to 11-12%.
The formation of resale as a separate niche of the fashion market was facilitated by the global economic crisis of 2008-2013, which formed a separate direction of demand for «forced savings while maintaining access to favorite brands.» It was then that most of the largest foreign resale platforms were launched: Japanese Mercari, American TheRealReal, Poshmark, Thredup and others.
This year, the American resale platform Ebay entered fashion week and held shows as part of New York and London Fashion Weeks. The show presented items that are sold on the platform and cover different eras and price categories: from 24 to 1000 pounds sterling. The goal: to show that archival designer items are valuable, an integral part of the brand’s history.
Currently, the drivers of fashion resale are:
«environmental anxiety»: the need to reduce the carbon footprint. This is possible by extending the life cycle of things, including their «sharing» — the transfer from owner to owner.
«generation rotation» — the shopping habits of generation Z. According to the Resale Report for 2023, prepared by ThredUp, on average 40% of the wardrobe of representatives of generation Z consists of used clothes.
«new retail ethics» — representatives of the business community of the new generation share and support the idea of eco-responsibility and the transition to a circular economy.
Initiatives to develop this area are being implemented not only by the resale platforms themselves, but also by large fashion retailers, for example, Zara and H&M:
1. Zara Pre-Owned. Currently, the Zara Pre-Owned program, launched 2 years ago in the UK, is already available in 16 European markets. Zara is expanding the geography of its Pre-Owned project, and bringing it to the US market. Buyers can choose their service: Repair, Resale and Donation.
2. H&M Preloved. The Swedish retailer tested the concept in Barcelona and a year later is launching the project in France and Belgium. The stores will have a section with second-hand items, where visitors can not only buy used goods of good quality, but also bring their own items from H&M and other brands to sell.
HOT POINTS of global resale
According to the annual report of the resale platform The RealReal, the number of users of which has exceeded 37 million, the most popular categories were: exclusive jewelry, iconic bags from famous fashion houses (the most popular brands on the platform were Gucci and Chanel), as well as items that have gone viral on social networks, thanks to the global trend for nostalgia.
RUSSIA
The resale boom is one of the key trends of 2024 on the Russian market. According to Avito, the share of fashion resale in 2023 approached 6% of the total volume of the Russian fashion market.
The development of resale in the local market in 2023 was influenced by:
- The desire to save money has become a significant market driver, which is manifested in buyers searching for goods at the best price. The key motivation for turning to resale is the opportunity to save money (53%), while environmental ethics and concern for the conservation of natural resources are decisive factors for only 15% (Avito and SberAnalytics, 2023).
- Rising prices and the departure of foreign brands affected all buyers and formed:
among the mass audience — the desire to maintain access to their favorite brands;
among wealthy buyers — to maintain access to brands with «investment» potential — Chanel, Gucci, Hermes, Louis Vuitton, Balenciaga, Saint Laurent, etc.
- Development of retail infrastructure, simplifying the launch of such projects. First of all, the growth of online commerce, which received an impetus for development during the pandemic.
- The activity of leaders promoting the very concept of «pre-owned fashion». Resale platforms have significantly increased their marketing budgets aimed at increasing the popularity of resale in social networks through media personalities and influencers. The idea is that «things with history» are relevant, rational and ethical.
HOT POINTS of resale in Russia
The most popular category on resale is women’s clothing (37%). Then come bags (about 25%), men’s clothing (14%), women’s shoes — 15%, men’s shoes — 9%. (Avito data)
LEADERS AND FOLLOWERS
In addition to well-known players in this segment (Oskelly, The Cult, Tsum Collect, Spin4spin), many niche projects are appearing, the assortment of which consists of iconic archival items or vintage (Vintage Vintage, Tacky not Tacky, PifPaf Supershop, Snova Vintage) and many others.
New resale platforms with expanded functionality are also appearing. This spring, a new platform was opened — Resophya, which presents bags, jewelry and watches of luxury brands. The platform expanded the functionality of resale projects and, in addition to the sale and purchase of products, presented additional services to clients: concierge service, professional authentication, spa and restoration of bags, polishing of watches and jewelry.