Pushed largely by a shopper shift to a sustainability ethos, the secondhand market is poised to greater than double in dimension to $77 billion over the following 5 years, in line with ThredUp’s 2021 Resale Report launched Wednesday.
In 2020 alone, the secondhand market reached $36 billion, the report stated, made up of resale items ($11 billion) and conventional thrift and donation objects (at $21 billion).
Citing the pandemic, the report famous that 33 million customers purchased secondhand attire for the primary time final yr. The common thrifter bought about seven secondhand objects—ones that they might usually purchase new. That displaced greater than 542 million new objects of attire, stated ThredUp.
What’s extra, 223 million individuals stated in 2020 that they’ve already shopped or are open to buying secondhand merchandise. Definitely, the pandemic helped drive demand for thrift objects, ThredUp famous, with one out of two customers saying they turned to the secondhand market to economize.
Retailers even have resale on their minds. In response to the report, which surveyed 3,500 Individuals in March and April, 42 % of retail executives stated resale will probably be an necessary a part of their enterprise over the following 5 years.
“We’re within the early stage of a radical transformation in retail,” stated James Reinhart, co-founder and CEO of ThredUp, within the report. “Shoppers are prioritizing sustainability, retailers are beginning to embrace resale, and policymakers are getting on board with the round economic system.”
ThredUp itself has benefited from rising curiosity within the secondhand market. The corporate went public in March, elevating $168 million; the net buying platform had revenues of $186 million within the final fiscal yr, with 1.2 million energetic patrons. The corporate was based in 2009.
Millennials and Gen Zers paved the way relating to buying secondhand. The report discovered that 53 % of individuals from these generations say that over the following 5 years, they plan to spend extra on secondhand items. In the meantime, 45 % of individuals from the millennial and Gen Z generations is not going to purchase from non-sustainable retailers and types.
The ThredUp report famous that purchasing a brand new merchandise versus buying a used one has clear environmental impacts: Whereas the footprint of a brand new merchandise would use 78.5 gallons of water, a secondhand merchandise would solely use 1.2 gallons. For emissions, new objects usually contribute 21.1 kilos of carbon dioxide, whereas used merchandise contribute 3.7 kilos.
Trying forward, 58 % of shops stated monetary incentives would make them extra prone to check resale. For instance, the report stated, the federal government may supply tax deductions for manufacturers which have licensed resale applications and/or take away gross sales tax on purchases of secondhand items.
Over the previous couple of years, an rising variety of main retail companies have entered the resale enterprise by way of quite a lot of means. Walmart, Macy’s and JCPenney, as an illustration, have cast partnerships with ThredUp, whereas Neiman Marcus took a minority stake in Fashionphile in 2019.
Extra lately, Mytheresa and Vestiaire Collective launched a joint resale service permitting the previous’s so-called “high shoppers” to promote their pre-loved purses on the Vestiaire Collective platform. And Etsy’s acquisition of Depop earlier this month additional illustrated the rising concentrate on secondhand as a robust enterprise alternative.