A ThredUp warehouse.
Despite the coronavirus pandemic that is affecting much of the retail industry and holding back clothing sales, the second-hand clothing market is expected to increase, according to an online resale market.
The second-hand clothing market is worth around $ 28 billion today and is forecast to hit $ 64 billion within five years, ThredUp said in its annual report, which is completed in partnership with the signing of Global Research GlobalData Retail.
He said the resale market grew 25 times faster than the general retail market last year, with approximately 64 million people buying second-hand goods in 2019.
“Reselling is here to stay,” said ThredUp co-founder and CEO James Reinhart. “The next question is who wins and who loses.”
Some experts have warned that consumers may backtrack on buying used products while thinking about the Covid-19 virus and how it can be transmitted. Some fear that it may stay in the fabrics. But according to Reinhart, that fear does not appear in the data.
“The constant cycle of news about how the virus is transmitted has educated consumers. It is not transmitted through clothing,” he said. “When this started, we were all concerned about takeout. Now that’s for sure. Consumers are smart with these things.”
San Francisco-based ThredUp has a website and a few stores where consumers can sell their things and buy resold products. It calls itself the “World’s Largest Online Thrift Store”. The company has been increasingly highlighted by experts and analysts as it has partnered with leading retailers, including Macy’s, Walmart, and Gap. Everyone apparently wants a piece of the cake.
“Younger people get smarter than ever about how useless it is [fast fashion] is, “said Reinhart.” For years, I tried to convince retailers to worry about this. ”
According to the report, second-hand goods are expected to account for 17% of a person’s share of closet space by 2029, compared to just 3% in 2009. That would put it behind only merchandise purchased in out-of-price outlets such as TJ Maxx, at 19%. A department store’s share of a closet is expected to be 7% in 2029, down from 22% two decades earlier.
“Department stores recognize that they will lose share unless they catch the magic mojo … and what else is going on in the apparel,” Reinhart said. “The department stores are looking for us to help in some way.”
Meanwhile, with the unemployment rate in the United States skyrocketing, more consumers are going to shop on a budget, if at all.
Thredup and GlobalData expect second-hand markets, Amazon’s fashion business, and off-price retailers to be the only apparel sectors to gain new customers this year.