Can secondhand fashion really replace fast fashion?

It no longer surprises anyone: fast fashion has a considerable environmental impact.

Clothing production alone accounts for 10% of global carbon emissions and is the world's second-largest water consumer (1).

Since the 2000s, clothing production has doubled: not only are consumers buying more, but they're wearing them for shorter periods.

Result: 85% of textiles end up in landfills each year. Every second, the equivalent of a garbage truck full of clothes is burned or sent to landfill.

Linear models are no longer sustainable. With environmental challenges and consumer-driven change, other models are emerging.

More "slow fashion" to eventually replace fast fashion?

Preserving resources, consuming differently — circular models are making their way into the fashion industry.

This is the slow fashion movement: it first appeared with pioneer brands like Patagonia, which has implemented slow fashion initiatives for several years.

The outdoor clothing manufacturer offers its customers lifetime warranty, repairs, and after-sales service.

In recent years, the slow fashion movement has gained ground: it tackles unnecessary production methods and encourages more thoughtful and reasoned consumption.

Since then, traditional brands have launched their platforms, partnering with companies that already have the necessary technology.

This is the case with Tommy Hilfiger, which recently launched the rental of its unisex pieces from the TommyXRomeo collection and some iconic Tommy Jeans, encouraging the brand's loyal customers to consume differently.

Celebrities are also starting to openly support these alternative models.

Recently, stylist Harry Lambert launched his first store on secondhand clothing site Depop, the platform favored by Generation Z. Unique secondhand pieces sold within hours.

Likewise, American resale site ThredUp unveiled its partnership with Stranger Things actress Priah Ferguson. The goal? Discourage Generation Z from buying fast fashion.

The store offers a "confessional hotline" where customers are advised directly by the actress to make good choices in terms of sustainability.

From thrift stores to "Resale-as-a-service"

Just a few years ago, buying secondhand clothes had a bad image.

Thrift stores, for example, had negative connotations, stigmatized as an option that consumers didn't boast about.

Then, buying secondhand gained ground under the name "vintage" with the appearance of specialized stores, both physical and online. However, these were isolated and poorly structured initiatives.

More recently, buying secondhand has gained a trendier and more climate-friendly image.

Then, the secondhand market began to structure itself with the appearance of platforms like Vinted or Vestiaire Collective in France or ThredUp in the USA to become a booming market.

Indeed, by 2024, the secondhand market is expected to reach $77 billion, compared to $36 billion in 2021, in the United States alone (3).

Thus, one in five American consumers would be ready to replace their fast-fashion purchases with secondhand clothes.

Same story in studies conducted by merchants themselves: according to The RealReal, the online luxury goods marketplace with 28 million members, resale has increased by more than 3 times since 2018; more than twice as many items originally purchased on the platform have been resold since the beginning of the pandemic (4).

In France, the online secondhand clothing market grew by 51% between 2019 and 2021! (5).

The secondhand market for fashion items (clothing, shoes, lingerie and accessories) is currently growing 11 times faster than traditional retail.

By 2030, the secondhand market is expected to surpass the fast fashion market to become twice as large (6).

So much so that major brands are joining the movement. In the United States, 60% of American retailers are open to offering resale to their customers (7).

Brands like Madewell, Lululemon and H&M have already launched their resale programs.

An "emotional shift"

Consumer behavior has changed considerably in recent years.

However, few companies are yet aware of this profound transformation, driven by... emotional choices.

Thus, a recent report from platform The RealReal (8) not only maps changes in behavior and spending habits of their customers, but reveals the emotional and environmental impact of secondhand, particularly in the current context of economic uncertainty.

According to the report, 2021 was pivotal in transforming consumer behavior: how they buy and engage in resale has changed considerably.

They are increasingly mindful of how they spend their time, money and energy.

Who are secondhand consumers?

Traditionally, millennials and young conscious consumers were the driving force of the secondhand market.

It's true that this category of consumers still constitutes the core clientele of resale platforms.

In Europe, the biggest secondhand consumers are young people between 18 and 34 years old. They represent 40% of Europeans who buy secondhand products at least once a month.

80% of Europeans and 82% of French people have a good image of the circular economy and the secondhand market (9).

This trend is global: in the USA, more than 40% of Generation Z and millennial members made secondhand purchases in 2020, compared to 23% in 2016 (10).

This trend should continue: with environmental awareness and economic issues affecting all segments of populations, regardless of their country of origin, the secondhand market will concern everyone in the coming years.

What products are favored by secondhand buyers?

Regarding fashion items and accessories, new trends are emerging according to The RealReal report:

Collectibles and vintage

• Collectibles sales growth is 78% in the first half of 2022
• Demand for vintage collectible clothing increased by 439%, surpassing all other vintage clothing categories
• Demand for unbranded necklaces for men increased by 33%, exceeding that of women by 29%

Luxury brands

• Balenciaga experienced the strongest demand growth (+41% compared to the previous year) among the top ten brands; Generation Z is the main driver
• Dior landed in the top 10 for the first time since 2019; Generation X and baby boomers are responsible for the 31% annual demand increase

Consumers seem to be turning to secondhand platforms to acquire unique pieces and luxury items.

Moreover, the secondhand luxury market is growing 4 times faster than the traditional market and online platforms represent 25 to 30% of the secondhand luxury market.

In the clothing industry, environmental awareness is driving a rethinking of the garment lifecycle.

To reduce waste and refuse, haute couture and ready-to-wear are moving toward zero-waste models, favoring reuse and valorization of textiles.

Efforts focus on managing household and electrical waste, encouraging consumers to sort and opt for renewable resources.

Waste reduction and prevention are key aspects of modern ecology, supported by initiatives such as resource centers and recycling channels.

Organizations like ADEME contribute to energy management and green growth, aligning environmental practices with functional economy objectives.

Challenges of new circular secondhand models

Emerging models in the secondhand market are closely linked to the circular economy.

Consuming less, but better, preserving resources, no more waste... However, implementing these new models comes with its share of new challenges.

Indeed, building a circular business model is not as simple as launching any e-commerce activity.

Some regions of the world still lack infrastructure, such as recovery or recycling solutions, or don't necessarily have access to technologies that connect value chain actors to support circular economic models.

The ready-to-wear industry, facing significant environmental challenges, is evolving toward more sustainable models.

Websites and stores are reorienting toward the second life of clothes, thus reducing waste and environmental impact.

Initiatives such as bartering, selling unsold items, and promoting eco-responsible fashion are transforming consumers' wardrobes, encouraging more thoughtful purchasing habits.

Companies like Vuitton integrate digital personalization and social economy to valorize their end-of-life products.

Platforms like ZIQY support this transition by offering rental and reuse solutions, thus contributing to a more circular and collaborative economy, limiting greenhouse gas emissions.

This approach redefines shopping and wardrobe, aligning with consumers' new expectations for a sustainable future.

Even in more developed countries, traditional retailers still face logistical difficulties (recovering secondhand items, cataloging them, storing them, shipping them...), but also technological ones (setting up a resale platform and ensuring a customer experience as qualitative as buying new items).

Are you planning to enter the secondhand market? Transform your goods offering into a service offering.

You can entrust the creation of your entire value chain to ZIQY or simply choose to connect our SaaS platform. Test our platform for free.

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Sources:

1. Business Insider
2. Ellen MacArthur Foundation
3. ThreadUp
4. RealReal 2022 Report
5. Natixis Payments Observatory
6. Cross-Border Commerce Europe
7. GlobalData Fashion Retailer Survey
8. RealReal 2022 Report
9. Cetelem Observatory
10. ThreadUp
11. RealReal 2022 Report