Lululemon is the second most popular brand in resale, according to ThredUp’s 11th Annual Resale Report. Other activewear brands that made its Top 20 Most Popular Brands In Resale include Patagonia, at No. 6; Vuori, in 10th place; and The North Face, at 18.

Overall, the most popular brand at resale, according to the ThredUp Report, was Torrid, followed in the Top 10 by Lululemon, Madewell, Zara, Free People, Patagonia, Reformation, Urban Outfitters, Overland, and Vuori. Levi’s landed at No. 11 in its Top 20 list, followed by Anthropologie, Abercrombie & Fitch, Modcloth, Lane Bryant, Johnny Was, The North Face, Lillie Pulitzer, and Tory Birch.

ThredUp reported that 30 percent of the Top 20 brands in its report offer dedicated resale programs, including Lululemon Like New, Patagonia’s Worn Wear and The North Face Renewed. Hot items include:

  • Dr. Martens boots,
  • Fjallraven Backpack,
  • Patagonia vests,
  • SmartWool track jacket,
  • Vuori casual pants,
  • Lululemon Belt Bag, and
  • The North Face raincoat.

Resale Expected To Nearly Triple By 2027
ThredUp’s study, based on research conducted by GlobalData, delivered bullish growth for resale, with the global secondhand market forecasted to nearly double by 2027, reaching $351 billion. Global resale sales are predicted to expand three times faster than new clothing sales.

In 2022, global second-hand sales reached $177 billion, up 28 percent.

In the U.S., the secondhand market is expected to reach $70 billion by 2027, up from $39 billion in 2022. Secondhand sales grew 11 percent in 2022, but growth is expected to accelerate to 26 percent in 2023 and continue its momentum into 2024, growing at 33 percent. Overall, resale in the U.S. is expected to grow nine times faster than the broader retail clothing sector by 2027.

U.S. consumers bought 1.4 million secondhand apparel items in 2022 that they usually would have purchased new, up 40 percent from 2021.

Among channels, online resale is one of the fastest-growing sectors of the U.S. secondhand market, expected to grow 21 percent annually over the next five years, reaching $38 billion by 2027.

Resale includes traditional thrift and donation, resale platforms from brands or retailers and resale platforms, including ThredUp, The RealReal, Depop, and Poshmark.

ThredUp’s findings were based on its December 2022 survey of 3,012 U.S. adults over 18, asking specific questions about their behaviors and preferences for secondhand, and a survey in January 2023 of the Top 50 U.S. fashion retailers and brands.

Among consumers surveyed by ThredUp, value is the number one driver influencing purchasing decisions in resale. The remaining Top 5 resale drivers for respondents were quality, selection, convenience, and transparency. Respondents considered trends to be the weakest spending motivator. 

Among Gen-Z respondents, more than half said they are more likely to shop with a brand that offers secondhand apparel alongside new, and 64 percent said they search for an item secondhand before buying it new.

Among retailers surveyed, more than two in three who offer resale said its integral to their company’s long-term growth strategy. Eighty-two percent of retailers who offer resale said they expect resale to generate a positive return on investment.

“Resale is starting to blossom globally, with many of the largest retailers in the world adopting more circular business models; value continues to be a key driver that motivates consumers to think secondhand first; and at the same time, global climate issues have increased awareness of resale’s potential to reduce fashion’s impact on the environment,” said James Reinhart, ThredUP’s CEO. “It’s clear we’re on a promising trajectory, and by working together through collective action, we can alter fashion’s future for the better.”

Globally, the study showed that 52 percent of consumers shopped for secondhand apparel in 2022. One in three apparel items bought in the last 12 months was secondhand, and two in five articles in Gen Z’s closet are secondhand. Among the consumer respondents, 37 percent spent a higher percentage of their apparel budget on secondhand last year. Of those, 63 percent increased their spending in response to inflation.

Younger Generations Driving Resale Demand
Younger generations are expected to account for nearly two-thirds of incremental secondhand spending as their purchasing power increases, according to ThredUp. Among generations, secondhand sales in the U.S. are expected to expand by 33 percent for Millennials through 2027, 28 percent for Gen-Z, 26 percent for Gen-X, and 12 percent for Baby Boomers.

The study found that 58 percent of Gen-Z and Millennials said their closet contributes to climate change, compared to 43 percent of overall consumers. Sixty-three percent of Gen Z and Millennials said they can reduce their footprint, compared to 55 percent of general consumers. Sixty-one percent of Gen Z and Millennials consider themselves sustainability-focused, compared to 51 percent of general consumers.

Retailers Attracted To Resale’s Sustainability Benefits
Among the retailers surveyed by ThredUp, 45 percent who offer resale said they satisfy investor demands around ESG. More than one-third of retailers said if resale proved successful, they would cut production of new products.

Overall, 86 percent of retail executives said their customers are participating in resale, up 8 percent from 2021. 

Eighty-eight brands launched dedicated resale programs in 2022, a 244 percent increase from 2021. Fifty-eight percent of retail executives said offering resale options to customers is becoming table stakes, up six percent from 2021.

To read the study, go here. 

Photo courtesy Lululemon