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Transforming Fashion: The Rise of Resale Markets

A recent collaboration between the Boston Consulting Group (BCG) and Vestiaire Collective, a leader in luxury secondhand fashion, has unveiled critical insights into shifting trends within the global resale market. As outlined in their 2025 report titled "The Next Chapter of Resale: How Fashion and Luxury Brands Can Thrive in the Secondhand Market," the resale sector is poised for remarkable growth over the next decade.

The Rapid Growth of Resale

The report forecasts that the resale market for fashion and luxury items will reach a staggering valuation of $360 billion by 2030, growing at an annual rate of 10%. This growth trajectory is three times quicker than that of new goods, indicating a paradigm shift in consumer behavior towards secondhand markets.

Fanny Moizant, co-founder and president of Vestiaire Collective, emphasizes that the motivation behind this trend extends beyond mere affordability; it reflects a conscious choice among consumers to make sustainable fashion decisions. She notes, "The resale market has become an essential part of people’s shopping behavior and wardrobe choices."

Driving Forces Behind the Trend

The findings of the report are grounded in a comprehensive survey conducted among 7,800 users of Vestiaire Collective. Notably, resale items constitute 28% of respondents’ wardrobes, with clothing and handbags accounting for 30% and 40%, respectively.

1. Affordability remains a key driver, with nearly 80% of participants citing it as their primary reason for purchasing secondhand items.
2. Diversity and uniqueness also play critical roles, with 55% agreeing that the variety of available secondhand goods strongly influences their shopping habits.
3. The thrill of the hunt resonates with nearly 50% of respondents, highlighting the engaging experience of interacting with other buyers and sellers.
4. Finally, sustainability emerges as a significant motivator, with 40% expressing a belief in the environmental benefits of choosing used products.

On the selling side, motivations include decluttering closets (66%) and generating extra income, which 41% acknowledged as a reason for selling their items.

Generation Z: Pioneers of Resell Culture

Generation Z stands out in this landscape, as they lead the charge in embracing resale markets. Secondhand items comprise up to 32% of their wardrobes, with a remarkable 66% of U.S. respondents indicating a preference for purchasing secondhand handbags. Moreover, this demographic perceives resale as an opportunity to explore new brands, significantly higher than the overall average of 66%.

Interestingly, while U.S. consumers exhibit a strong inclination towards resale, their approach is more transactional and value-driven. Almost 87% of respondents highlighted affordability as the main consideration for secondhand purchases, 11 percentage points higher than their European counterparts.

Challenges and Future Opportunities

Despite the harmonious relationship forming between brands and the resale market, challenges remain, particularly the issue of data interoperability. Digital Product Passports (DPPs) are emerging as a potential solution to this problem. These passports can verify authenticity and product specifications, with 70% of consumers valuing this feature.