“In the past, wearing recycled clothing was motivated by economic necessity, but lately there has been a shift in fashion trends that has helped rid thrift stores and flea markets of their stigma “(Delong, M., Heinemann, B., & Reiley, K., 2005). This social awareness change has voided previous negative terms like “second hand” or “hand me downs” and changed the perception back into re-valued clothing. Commodities we now refer to as vintage, retro, or classics are subsequently creating a huge uptick in desirability in this form of clothing apparel. A global movement towards sustainability and preserving the environment has generated a huge demand for quality used clothing. In the end, this renewed interest in pre-owned apparel extends the product life-cycle and has given the secondhand industry elevated status and a new identity, turning yesterday’s fashions into today’s lifestyle.
Identifying the core audience and their demographics.
I believe the strong social conscious movement is one of the dominating forces behind the resell clothing industry explosion. Due to many controversies involving child labor abuse and solid waste’s environmental impact, secondhand fashion is becoming attractive for more reasons than one. “Not only does it contribute to a cleaner environment while supporting local retailers and entrepreneurs, but it is also less expensive” (Shahbandeh, 2020). Without the resell market, an estimated 2.5 Billion pounds of consumer textile waste will enter the world’s waterways, exacerbating a serious global crisis. Due to mass overconsumption, sustainability has become a sobering concern of many consumers, giving cause for consumers’ demand for eco-friendly and socially conscious brands.
So, this presents a dilemma and dual opportunities. First, identifying ideal markets for resources and identifying customers/consumers. According to a September 2006 report by Oakdene Hollins,” It is estimated that 21 % of annual clothing purchased stays in the home, increasing the stocks of clothing held by consumers” (Claudio, 2007). This implies a significant resource from which resellers can tap into to satisfy demand. Accordingly, Gen Z and millennials are quickly becoming the foundation of this demand and are the fastest and largest growing demographic, adopting the secondhand retail platform.
Figure 1
Graph Indicating the Fastest Growing Market of Secondhand Consumers
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Figure 2
Chart Indicating Growth of Female Secondhand Consumers
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Estimating internet and social media potential and identifying competitors and projected long-term growth.
As we previously learned, “Millennials and baby boomers are the largest consumers for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z” (Fernandez 2020). Women represent the largest group of consumers that are proud to shop secondhand. This number has been growing steadily since 2016. In fact, industry reports show that as of 2019, 70% of women are active or not opposed to shopping in the secondary retail market. Recent estimates say that “The resale industry is estimated to reach $36.0 billion by 2021”(Fernandez 2020).
Key players in this industry have already begun to establish their dominance by getting in on the movement early. Resale companies like ThredUP, Depop, Poshmark, and The RealReal have been cashing in on this trend since 2009. As indicated, sales growth within the market is expected to follow an upward trajectory based on eCommerce projections.
Figure 3
Graph Indicating Growth of Resale Market
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