BCG and Vestiaire Collective Reveal Trends Shaping the Resale Market
A new report from the Boston Consulting Group (BCG) in collaboration with Vestiaire Collective has just been released, shedding light on the rapid evolution of the global resale market, particularly in the luxury fashion segment. With projections indicating that the sector will skyrocket to an impressive $360 billion by 2030, it’s clear that the market is experiencing unprecedented growth.
The report, titled "Resale's Next Chapter - How Fashion and Luxury Brands Can Win in the Secondhand Market", is rooted in an expansive survey of 7,800 users from Vestiaire Collective, a leading platform for pre-owned luxury fashion. It emphasizes that resale already accounts for 28% of users’ wardrobes, with clothing making up 30% and handbags as high as 40%.
Significant Growth Drivers
The data reveals a staggering annual growth rate of 10% in the resale market, which is three times that of primary retail markets. This surge reflects shifting consumer habits as more individuals prioritize sustainable shopping practices. "Whether it’s hunting for affordable second-hand pieces or the thrill of discovering unique items, resale has become an integral part of how people shop and build their wardrobes," notes Fanny Moizant, co-founder and president of Vestiaire Collective, adding that shopping second-hand is now a conscious choice made by many.
Felix Krueger, managing partner at BCG, highlights the transition of resale from an experimental niche to a critical channel for attracting new customers among fashion and luxury brands. He emphasizes how brands are now considering resale a key part of their strategy, particularly with Generation Z and other resale-savvy consumers leading the way.
Consumer Motivations
The report identifies several compelling reasons why consumers are engaging with the resale market. Firstly, affordability remains a primary driver, with nearly 80% of respondents citing price as the main motivation for purchasing second-hand items. Additionally, around 55% of buyers appreciate the extensive selection and unique offerings available through resale channels.
The enjoyment derived from the hunt for bargains is also significant, with nearly 50% of users indicating that the interactive nature of buying and selling, including seller engagement, enhances their shopping experience. Furthermore, approximately 40% highlight sustainability as a significant factor influencing their decision to buy pre-owned products.
On the selling side, motivations primarily include a desire to declutter wardrobes and generate additional income. About 66% of sellers claim they are cleaning out their closets, while 41% seek to earn money for future purchases of second-hand items.
The Leading Role of Generation Z
Generation Z stands out in this evolving landscape, with second-hand items constituting 32% of their wardrobe. This figure climbs even higher for handbags, reaching 45% globally and peaking at 66% in the United States. Interestingly, eight out of ten Gen Z respondents view resale as a means to discover new brands, significantly surpassing the general average of 66%. The U.S. market is particularly attuned to value, with around 87% of respondents citing affordability as a primary motivation for purchasing second-hand products—the highest globally.
The Future of Resale and Digital Product Passports
While strategic resale models are paving the way for a sustainable future in fashion, challenges remain, particularly concerning data interoperability beyond initial sales. Digital Product Passports (DPP) are emerging as a pivotal asset in this regard. They facilitate consumer authentication—playing a crucial role for 70% of buyers and 67% of sellers who prioritize assurance about product authenticity.
However, awareness of these DPPs is low, with two-thirds of survey participants having never heard of them. This presents a unique opportunity for brands willing to lead the market in this aspect. It will not only be important to comply with evolving standards but also to leverage these tools to build trust with their clientele.
In conclusion, the landscape of fashion and luxury is rapidly shifting toward a circular economy where each item can have multiple lives. Vestiaire Collective aims to foster this circularity by enabling brands to create truly sustainable fashion, providing seamless resale experiences and total transparency, and empowering customers to turn their wardrobes into dynamic and valuable assets.
The report, titled "Resale's Next Chapter - How Fashion and Luxury Brands Can Win in the Secondhand Market", is rooted in an expansive survey of 7,800 users from Vestiaire Collective, a leading platform for pre-owned luxury fashion. It emphasizes that resale already accounts for 28% of users’ wardrobes, with clothing making up 30% and handbags as high as 40%.
Significant Growth Drivers
The data reveals a staggering annual growth rate of 10% in the resale market, which is three times that of primary retail markets. This surge reflects shifting consumer habits as more individuals prioritize sustainable shopping practices. "Whether it’s hunting for affordable second-hand pieces or the thrill of discovering unique items, resale has become an integral part of how people shop and build their wardrobes," notes Fanny Moizant, co-founder and president of Vestiaire Collective, adding that shopping second-hand is now a conscious choice made by many.
Felix Krueger, managing partner at BCG, highlights the transition of resale from an experimental niche to a critical channel for attracting new customers among fashion and luxury brands. He emphasizes how brands are now considering resale a key part of their strategy, particularly with Generation Z and other resale-savvy consumers leading the way.
Consumer Motivations
The report identifies several compelling reasons why consumers are engaging with the resale market. Firstly, affordability remains a primary driver, with nearly 80% of respondents citing price as the main motivation for purchasing second-hand items. Additionally, around 55% of buyers appreciate the extensive selection and unique offerings available through resale channels.
The enjoyment derived from the hunt for bargains is also significant, with nearly 50% of users indicating that the interactive nature of buying and selling, including seller engagement, enhances their shopping experience. Furthermore, approximately 40% highlight sustainability as a significant factor influencing their decision to buy pre-owned products.
On the selling side, motivations primarily include a desire to declutter wardrobes and generate additional income. About 66% of sellers claim they are cleaning out their closets, while 41% seek to earn money for future purchases of second-hand items.
The Leading Role of Generation Z
Generation Z stands out in this evolving landscape, with second-hand items constituting 32% of their wardrobe. This figure climbs even higher for handbags, reaching 45% globally and peaking at 66% in the United States. Interestingly, eight out of ten Gen Z respondents view resale as a means to discover new brands, significantly surpassing the general average of 66%. The U.S. market is particularly attuned to value, with around 87% of respondents citing affordability as a primary motivation for purchasing second-hand products—the highest globally.
The Future of Resale and Digital Product Passports
While strategic resale models are paving the way for a sustainable future in fashion, challenges remain, particularly concerning data interoperability beyond initial sales. Digital Product Passports (DPP) are emerging as a pivotal asset in this regard. They facilitate consumer authentication—playing a crucial role for 70% of buyers and 67% of sellers who prioritize assurance about product authenticity.
However, awareness of these DPPs is low, with two-thirds of survey participants having never heard of them. This presents a unique opportunity for brands willing to lead the market in this aspect. It will not only be important to comply with evolving standards but also to leverage these tools to build trust with their clientele.
In conclusion, the landscape of fashion and luxury is rapidly shifting toward a circular economy where each item can have multiple lives. Vestiaire Collective aims to foster this circularity by enabling brands to create truly sustainable fashion, providing seamless resale experiences and total transparency, and empowering customers to turn their wardrobes into dynamic and valuable assets.
Topics Consumer Products & Retail）
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