A new Boston Consulting Group (BCG) report says, the next half-decade could see the resale market rise at a compound annual growth rate (CAGR) of 15 per cent to 20 per cent. For some strategically placed online resale players, the researchers calculated a potential CAGR of 100 per cent over the next half a decade alone.
BCG surveyed 7,000 consumers across six countries, specifically individuals who are active on Vestiaire Collective – an online fashion resale platform. The aim was to explore a market that is rapidly gaining momentum, positioned on the bright side of the dramatic changes in consumer behavior resulting from Covid-19.
A subdued economy this year has been devastating for the global luxury goods market, as all manner of discretionary spending came to a grinding halt. The good news is that the appetite for luxury has not disappeared – putting secondhand fashion in the spotlight.
The market has already gained some ground across the world – currently valued anywhere between $30 billion and $40 billion. Against this backdrop, considering the fact that resale only represents 2 per cent of the global fashion market at the moment, the only direction seems to be upwards.
