A joint research by BCG and Vestiaire Collective reveals that the second-hand trend and luxurious market has tripled since 2020, with no indicators of slowing down
PARIS, October 5, 2022 /PRNewswire/ — The estimated worth of the resale marketplace for clothes, footwear and equipment is between $100 Y $120 billion worldwide, greater than triple the scale it was in 2020, in accordance with new analysis from the Boston Consulting Group (BCG) and Vestiaire Collective, a world platform for secondhand trend. The report, titled What a fast-paced second-hand market means for trend manufacturers and retailers, opens at the moment.
The second-hand market already represents between three% and 5% of the final clothes, footwear and equipment sector and will develop to 40%. Whereas resale gadgets make up a couple of quarter of thrift consumers’ wardrobes, they’re anticipated to comprise 27% of thrift retailer wardrobes by 2023. Gen Z shoppers are the probably to buy (31 %) and promote (44%) second-hand gadgets. , with millennials following intently behind.
“At BCG, now we have been analyzing the worldwide resale market intimately since its infancy,” mentioned sarah willersdorf, world head of luxurious at BCG and co-author of the report. “It’s now sure that second-hand clothes has been embraced by shoppers and it’s altering the best way they purchase and promote their clothes. There’s a enormous alternative for manufacturers getting into this market to seize new clients whereas additionally attracting to current patrons motivated by sustainability, affordability and exclusivity.
Sustainability is an more and more necessary driving power for second-hand patrons
The report relies on two world surveys of 6,000 shoppers performed in 2020 and a couple of,000 shoppers in 2022, to raised perceive their engagement with the resale market. Whereas affordability was cited as the primary driver for getting second-hand gadgets amongst greater than half of these surveyed, this development is declining. Product selection was reported because the second largest driver of second-hand items consumption. Forty p.c of consumers see second-hand clothes as their approach of consuming trend sustainably, and the identical quantity select the second-hand marketplace for the wide range and distinctive items it gives. The joys of the hunt and the chance to barter with distributors are additionally more and more in style elements for getting second-hand clothes, with 35% of respondents citing them as their driving forces.
Sellers are motivated by their wardrobe detox, however deterred by lack of time
Sixty p.c of those that promote secondhand gadgets want to clear out their wardrobes and make room of their closets. That very same quantity additionally reported motivation to get better the residual worth of their merchandise and spend it on second-hand (39%) or first-hand (20%), or basically (39%) merchandise.
Whereas promoting is an more and more in style conduct amongst patrons, not all patrons have bought gadgets on the secondhand market. Thirty p.c of non-sellers have one thing to promote, however have not been capable of finding the time to publish their articles. As a substitute of promoting, 30% of these surveyed favor to offer their gadgets away to mates or charities. 1 / 4 of consumers reported that they’d not know what gadgets they’d promote from their wardrobes.
“Vestiaire Collective is the main world app for desired second-hand trend created in 2009 with a mission: to remodel the style trade for a extra sustainable future,” mentioned Fanny Moizant, co-founder and president of Vestiaire Collective. “We’re proud to see that sustainability and environmental consciousness are rising drivers for purchasers to purchase and promote, but additionally for corporations that need to combine circularity into their enterprise mannequin. Whereas there are lots of avenues for manufacturers to discover this market, internally or with an exterior associate, collaborating with a longtime platform like Vestiaire Collective has important benefits, together with entry to a neighborhood of greater than 23 million resale shoppers worldwide, in addition to greater than a decade of expertise in information, pricing, logistics and compliance.
Succeeding within the Courageous New Resale World
Almost 60% of shoppers have both found a model or purchased it second-hand for the primary time, underscoring the large alternative for manufacturers to extend their attain to new clients by taking part within the resale market.
The report outlines three fashions that manufacturers or retailers ought to take into account when getting into the used market.
- Personal and function your individual reselling capabilities: By reselling their very own collections on-line and in shops, corporations can preserve management of their model and pricing construction and nonetheless make double the margin on the identical merchandise. However this strategy may be resource-intensive and there could also be restricted buyer attain, in addition to quantity and stock dangers.
- Affiliation with a reseller platform: This mannequin gives a mutually useful resolution. The platform handles logistics, fee processing, and product validation, whereas gaining elevated visitors, promotion, and credibility from the retailer. For its half, the model can resell its merchandise, increase recognition and appeal to new clients at a low value with out having to execute the reselling operation.
- Discover reselling with out making a major funding or long-term dedication: This feature contains granting a retail associate modest-sized retail area in shops and creating low cost schemes and incentives to promote second-hand clothes to retailers. These lighter options assist improve visitors and viewers attain, and permit avid gamers to take part within the round economic system whereas mitigating the danger of counterfeit merchandise.
Obtain the publication right here: www.bcg.com/publications/2022/the-impact-of-secondhand-market-on-fashion-retailers
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About Vestiaire Collective
Vestiaire Collective is the world’s main app for fascinating second-hand trend. It’s devoted to remodeling the style trade for a extra sustainable future by selling the round trend motion as a substitute for the overproduction and overconsumption and wasteful practices of the style trade. Impressed by the “Lengthy Dwell Trend” philosophy, it supplies its neighborhood – those that reside for trend and cherish it for all times – with inspiration, instruments and options to steer change as they purchase and promote distinctive second-hand items. of one another’s wardrobes. The platform is exclusive due to its extremely engaged neighborhood and its uncommon and fascinating stock of 5 million gadgets. Launched in Paris in 2009, Vestiaire Collective is a Licensed B Firm® with places of work in Paris, New York, The Angels, Hong Kong, seoul, Singapore and a know-how middle in Sedan. Study extra by downloading the app, visiting www.vestiairecollective.com and following @vestiaireco on Instagram.
SOURCE Boston Consulting Group (BCG)