#USA #Paris #Resale Market #BCG #Vestiaire Collective

Resale Market Growth: An Analysis

A new report released by the Boston Consulting Group (BCG) in partnership with Vestiaire Collective shines a light on the transformative trends affecting the global resale market. Titled "Resale's Next Chapter: How Fashion and Luxury Brands Can Win in the Secondhand Market," this comprehensive study draws insights from a survey involving 7,800 Vestiaire users, revealing that resale currently constitutes approximately 28% of their wardrobes. Interestingly, this figure is projected to increase to 30% for clothing and 40% for handbags.

The Surge in Secondhand Fashion

Secondhand fashion is on the rise, with predictions indicating that the global resale market could soar to $360 billion by the year 2030. Notably, this sector is expanding at an impressive rate of 10% annually—three times faster than the traditional retail market for new items. Fanny Moizant, co-founder and president of Vestiaire Collective, articulated this shift, stating, "Resale has become an integral part of how consumers shop and curate their wardrobes, evolving into a conscious choice for many."

Felix Krueger, a managing director and partner at BCG, shared insights on how brands are adjusting to this rapid change. He emphasized that many companies now view resale not just as a nascent trend but as a vital avenue for attracting a fresh demographic of customers, particularly among younger consumers like Gen Z.

Motivations Behind Consumer Choices

According to the report, several key factors motivate consumers to embrace secondhand shopping. Affordability remains paramount, with nearly 80% of respondents indicating that this is their main reason for buying secondhand. However, other influential aspects include:

• - Diverse Selection and Uniqueness: About 55% of buyers value the wide variety and one-of-a-kind nature of secondhand items.
• - The Thrill of Discovery: Approx. 50% of participants find joy in the search process and the interactions that come with resale platforms.
• - Sustainability Considerations: Nearly 40% of respondents are driven by environmental concerns and the desire to support sustainable fashion practices.

On the selling front, motivations are equally compelling, with 66% of sellers interested in clearing their wardrobes. Financial gains also play a significant role—41% aim to earn extra income, while 44% intend to use those earnings to fuel future secondhand purchases, and 18% aspire to fund new acquisitions in the first-hand market.

Gen Z and U.S. Resale Trends

The report highlights Gen Z as the leading demographic in adopting resale practices, with secondhand items constituting up to 32% of their wardrobes. Notably, this figure rises to 45% for handbags. Additionally, 80% of Gen Z respondents view resale as a platform for discovering new brands, a figure notably higher than the 66% average across all demographics. The United States showcases a distinct pattern of resale adoption, heavily influenced by affordability—87% of American respondents highlight cost as their primary motivation for buying secondhand goods.

The Future of Resale: Digital Product Passports

As the resale ecosystem evolves, digital product passports (DPPs) are surfacing as crucial enablers for enhancing consumer trust. These passports can significantly alleviate concerns regarding product authenticity and provide detailed specifications. Nevertheless, a knowledge gap exists: 65% of survey participants reported never having heard of DPPs.

Catharina Martinez-Pardo of BCG drew attention to the strategic value of DPPs, stating, "They transcend mere compliance requirements and serve as effective tools for building consumer trust, ensuring authenticity, and creating new revenue streams throughout a product's lifecycle."

In summary, the findings from BCG and Vestiaire Collective underscore a pivotal moment for the resale market, characterized by rapidly evolving consumer behaviors and expectations. As the fashion industry shifts towards more sustainable and circular practices, brands will need to embrace these changes to stay relevant in a marketplace increasingly defined by the need for innovation and transparency.

• ---