The explosion of the second-hand market: economic revolution and business opportunities

The second-hand market is undergoing an unprecedented transformation. This circular economy, once confined to exchanges between individuals, is now establishing itself as a major strategic sector.

In France, this market already weighs 7 billion euros, including 1 billion for textiles. Initially reserved for exchanges between individuals to supplement their income, second-hand has become a real underlying trend.

This transformation is explained by several converging factors:

• Growing environmental awareness among consumers
• The accelerating impact of the health crisis
• The emergence of technological solutions facilitating market access

The second-hand market is now disrupting the balance of power in all sectors. It goes well beyond the fashion sector, affecting home appliances, automobiles, furniture, and even luxury goods.

New players appear daily, pushing traditional brands to position themselves in this promising market. Technological solutions make it easier to enter the second-hand market, democratizing access to this circular economy.

The second-hand market explodes resale platforms

What was a practice of exchange between individuals to save money and create additional income has created economic giants. Platforms that enable the exchange of second-hand items between individuals have literally exploded in recent years.

The emblematic example of Leboncoin

Leboncoin, for example, was initially a simple classified ads site between individuals. In 2020, this giant closed a record year, despite the health crisis.

Its revenue grew by 10% in 2020 to reach 393 million euros.

Pure players in the second-hand market

Other pure players, like Vinted, who bet on second-hand from the beginning and placed it at the heart of their business model, have become essential.

The company was valued at 1 billion euros in 2021 and weighs between 700 and 800 million euros in France in annual transaction volumes.

A diversified ecosystem in full expansion

Other C2C platforms have appeared since and have established themselves well in sectors such as:

• Clothing
• Home appliances
• Automotive
• Furniture

There is no limit — any second-hand item can be exchanged via a platform between individuals.

Attractiveness for investors

Given their potential, marketplaces are massively attracting investors. Since early 2020, resale companies like Fashionphile, Rebag, Vestiaire Collective, and The Luxury Closet have raised more than $134 million in total funding.

In France, Vestiaire Collective closed a record funding round for a total value of 178 million euros. Founded in 2009, Vestiaire Collective immediately positioned itself in the second-hand fashion market.

Consumers have adopted second-hand for good

Consumer behavior has radically changed in recent years. The perception of second-hand items has changed.

Today, many consumers consider second-hand items of equal or even superior quality to new products.

A profound paradigm shift

The rejection of the hyper-consumption model has led to the emergence of alternative models that are more economically and socially responsible, such as second-hand.

The size of this market is estimated at more than 7.4 billion euros in 2020. Its growth is very dynamic and according to experts, this should continue with strong demand and the development of online and in-store supply, particularly by traditional players.

Acceleration linked to the health crisis

This trend has accelerated even further with the health crisis. Seeking savings and concerned about more responsible consumption, buyers are turning enthusiastically to second-hand products.

These products allow them to access very good quality products for a price lower than buying new.

Motivations of French consumers

Main motivation	Percentage of French people
Savings realized	86%
Environmental considerations	78%
More respectful consumption	78%

Second-hand revolutionizes the fashion industry

It's a new force currently reshaping the fashion industry. The US second-hand clothing market is expected to more than triple in value over the next ten years.

It should grow from $28 billion in 2019 to $80 billion in 2029. This market currently weighs $379 billion in the United States.

Exceptional growth

Moreover, in 2019, second-hand clothing sales grew 21 times faster than new clothing sales. In France, second-hand fashion weighs 1.16 billion euros.

The battle against fast fashion

Progressively, second-hand fashion is eating away at fast fashion growth.

Sector	Expected growth (10 years)
Fast fashion	20%
Second-hand fashion	185%

Engagement of major fashion brands

The second-hand market is a solid trend. Long represented by platforms like Vinted, Leboncoin, or eBay, it now attracts major brands.

This trend is confirmed in the fashion sector, long criticized for the damage caused to the environment by fast fashion. Growing demand, linked to the emergence of new digital platforms, facilitates the adoption of the second-hand market.

Examples of major brand initiatives

La Redoute launched a platform dedicated to second-hand and circular fashion — La Reboucle. This second-hand sales site between individuals offers the sale and purchase of second-hand products (fashion, decoration, home) from all brands.

For each sale made, sellers have the choice of being paid in cash or receiving a 25% discount card for their purchases on the La Redoute site.

Other major fashion brands have already taken the plunge:

• Cyrillus with Seconde Histoire
• Balzac with Seconde Vie
• Aigle with Second Souffle

These major brands that are getting into second-hand

The second-hand market is gradually extending to other goods and historic retailers are beginning to offer refurbished items in turn.

Motivations of traditional distributors

With growing demand and a booming market, traditional distributors intend to establish themselves there to:

• Generate additional revenue
• Attract a younger clientele

Cdiscount: the example of a generalist marketplace

Cdiscount launched Cdiscount Occasion which allows its customers to buy and resell second-hand products, such as:

• Toys
• Clothing
• High-tech products
• DIY items
• Video games

The retailer's promise is of course to help its customers save money, but also to be part of a more responsible model.

IKEA: buying back and reselling furniture

For its part, furniture giant IKEA offers its customers to bring back second-hand furniture to the store in exchange for a discount card for their future purchases.

Decathlon: taking back second-hand sports items

Other retailers, like Decathlon, have launched their own platform for taking back second-hand sports items. Customers can be paid by bank transfer or in shopping vouchers.

Second-hand, circular economy and CSR commitments

The second-hand market goes hand in hand with the circular economy and CSR commitments of large companies.

Profound transformation of companies

The momentum of the circular economy is profoundly transforming companies, driven by consumers who are increasingly turning to brands concerned with sustainability.

Legislation is also evolving: let's remember that in France, Article 5 of the circular economy law prohibits the destruction of non-food unsold items from 2022.

All the more reason for major retailers to better manage their inventory by adopting a new business model.

Benefits for companies

Adopting a circular model also allows companies to affirm their CSR commitments.

La Reboucle for example has committed to:

• Zero plastic by 2030
• Carbon neutrality
• 60% responsible products in collections

Strengthening customer relationships

Being part of the circular economy also means:

• Strengthening relationships with customers
• Multiplying contact points with them
• Building loyalty
• Creating traffic in-store or online

The rise of the second-hand market in various fields

In a world where responsible consumption and the circular economy are gaining ground, the second-hand market is rapidly transforming.

A diversified ecosystem

Resale sites and consignment stores are thriving, offering consumers great deals on a variety of items:

• From clothing to ready-to-wear
• Watches and accessories
• Used vehicles

Thrift stores and private sales add to this trend, allowing customers to find unique clothes at advantageous selling prices.

Adaptation of traditional retail

E-commerce and Galeries Lafayette, among others, are adapting to meet this growing demand by integrating second-hand objects into their offerings.

Websites like Le Bon Coin and Cash Converters simplify shopping for these goods, offering an easy platform to sell and buy.

This trend underlines the growing importance of ecology and waste reduction in purchasing decisions.

Diversity and accessibility in the second-hand market

The second-hand market is not limited to clothing and electronics; it extends to a multitude of fields.

Physical distribution channels

Consignment stores offer sold items in good condition, ranging from childcare to various second-hand goods.

Garage sales and flea markets have become privileged places to find hidden treasures:

• Clothing and accessories
• Elegant handbags
• Items at very attractive prices during sales

Specialized digital platforms

Second-hand stores and online resale sites, like Troc de l'Ile, facilitate the buying and selling of a wide variety of items:

• Second-hand books
• Trendy sneakers
• All types of everyday objects

These platforms allow consumers to sell clothes or other items they no longer use, while offering buyers the opportunity to renew their wardrobe or find the perfect used vehicle.

All without leaving the comfort of their home and often with reduced shipping costs.

Towards luxury second-hand

Luxury second-hand is gaining ground spectacularly. This market weighs 36 billion euros in 2021 and its annual growth rate is 12%.

Luxury brands represent 18% of the 50 most sought-after brands in the second-hand market in France.

Platforms specialized in luxury

Platforms like The RealReal or Vestiaire Collective offer a digital marketplace for authentic consignment of luxury products.

Customers can buy and sell designer brands such as:

• Louis Vuitton
• Chanel
• Hermès

Interest from luxury groups

Moreover, these new players have attracted the attention of luxury players: in March 2021, Kering invested 178 million euros in Vestiaire Collective.

Innovation in circular luxury

New luxury second-hand models are appearing. The Tous brand is currently developing the concept of giving jewelry a second life by recycling it.

Responsible Consumption

In a world where responsible consumption and the circular economy are gaining ground, the second-hand market is rapidly transforming.

The responsible resale ecosystem

Resale sites and consignment stores are thriving, offering consumers great deals on a variety of items:

• From clothing to ready-to-wear
• Watches and fashion accessories
• Used vehicles

Thrift stores and private sales add to this trend, allowing customers to find unique clothes at advantageous selling prices.

Adaptation of traditional commerce

E-commerce and Galeries Lafayette, among others, are adapting to meet this growing demand by integrating second-hand objects into their offerings.

Websites like Le Bon Coin and Cash Converters simplify shopping for these goods, offering an easy platform to sell and buy.

This trend underlines the growing importance of ecology and waste reduction in purchasing decisions.

---

---

Sources:

1. GlobalData
2. Xerfi, IFM
3. Toute la franchise
4. Oney
5. ThreadUp
6. Kantar
7. ThreadUp
8. BCG
9. Wallapop