By Ethos
The clothing resale market has experienced remarkable growth in 2024, surpassing traditional retail sectors in apparel, accessories, and footwear. This expansion is driven by consumers seeking budget-friendly and sustainable shopping alternatives, according to new data from Consumer Edge. The report indicates that year-over-year spending in clothing and footwear resale surged from a summer low of a 3 percent decline to a peak growth of 5 percent in October, marking the highest increase of the year.
“Pure-play resale companies have been gradually growing share of the overall apparel, accessories, and footwear industry as many consumers look for alternatives to traditional retail,” the report notes. This expansion excludes brands that have integrated resale into their platforms, such as On, an athletic footwear and apparel company that recently launched its own resale site.
According to the findings, the resale market is expected to maintain its momentum. The global secondhand clothing market was valued at $40 billion in 2023 and is projected to reach $80 billion by 2032, with a compound annual growth rate of 7.2 percent during the forecast period. Factors such as potential new tariffs and other inflationary measures anticipated in 2025 may further drive consumers toward resale options, seeking value and sustainability in uncertain economic times.
Peer-to-peer online marketplaces are at the forefront of this growth. Grailed and Depop have led the resale market, with Grailed experiencing a year-over-year spending increase of over 180 percent, and Depop nearly 90 percent. Vinted also reported significant gains. Traditional brick-and-mortar thrift stores have also seen growth alongside omni-channel retailers such as Clothes Mentor and Goodwill.
The demographic driving this shift has expanded beyond Gen Z. Consumers aged 25 to 44 have notably increased their spending in the resale market, raising their share by more than 6 percent in the first ten months of 2024 compared to the same period in 2023. Platforms like Depop and ThredUp, which have a strong presence among this age group, are poised to benefit if this trend continues into 2025.
Income levels also play a role in resale market participation. Middle-income consumers, particularly those earning between $80,001 and $100,000 annually, are the leading spenders in this category, followed by those in the $40,000 to $60,000 and $60,001 to $80,000 brackets. Goodwill and Salvation Army are well-positioned to attract these consumers, as both brands have a strong presence within these income groups. Goodwill’s significant investments in its e-commerce platform have enabled it to reach a broader consumer base across various platforms.
In the luxury segment, handbag resale values have shown notable trends. Rebag’s annual Clair report reveals that Goyard has surpassed Hermès in value retention for the first time, achieving a 104 percent retention rate compared to Hermès’s 100 percent. Chanel and Louis Vuitton also demonstrated high value retention rates at 92 percent and 88 percent, respectively, entering what Rebag defines as “unicorn” status — brands with value retention exceeding 85 percent.
Pop culture influences have significantly impacted luxury handbag trends. Taylor Swift’s Eras Tour led to a rise in demand for small, concert-friendly designer handbags adorned with sequins and rhinestones, mirroring the artist’s style. Prada’s triangle top handle pouch bag achieved a 124 percent retained value rate, while Chanel’s giant crystal CC camera bag and Fendi’s Baguette 1997 bag reached 106 percent and 100 percent retained value rates, respectively.
Additionally, vibrant lime accessories have gained popularity, influenced by cultural trends such as Charli XCX’s album “Brat.” Bottega Veneta’s vibrant green padded cassette bag saw its value climb by 20 percent, and the Balenciaga Hourglass Top Handle in the same color experienced a 17 percent increase year over year.
Social media platforms, particularly TikTok, have also played a role in shaping consumer behavior. The “very demure, very mindful” trend on TikTok has coincided with a rising popularity of ladylike accessories, including top handle bags. Notable examples include Hermès’s Kelly Mini II bag, with a 150 percent retained value, Chanel’s Kelly top handle shopping bag at 131 percent, and Loewe’s Puzzle bag with a 93 percent retained value.
Rebag has been active in expanding its presence in the luxury resale market. In August 2024, the company partnered with Bloomingdale’s to offer over 2,500 pre-owned designer accessories through the retailer’s e-commerce site. Earlier in the year, Rebag launched a membership program providing members with prices up to 10 percent lower than non-members. Beyond its online platform and select Bloomingdale’s locations, Rebag maintains a retail presence in California, Florida, and New York.
—
This post was previously published on The Ethos.
***
Join The Good Men Project as a Premium Member today.
All Premium Members get to view The Good Men Project with NO ADS.
A $50 annual membership gives you an all access pass. You can be a part of every call, group, class and community.
A $25 annual membership gives you access to one class, one Social Interest group and our online communities.
A $12 annual membership gives you access to our Friday calls with the publisher, our online community.
Register New Account
Need more info? A complete list of benefits is here.
—
Photo credit: iStock
The post From Goodwill to Goyard, the Resale Economy Surged in 2024 appeared first on The Good Men Project.