A Boston Consulting Group survey of 7,000 individuals from six countries suggests the global secondhand luxury clothing market will grow at 15 per cent CAGR over the next five years. According to the survey conducted in collaboration with Vestaire Collective, developed markets may see even greater gains, and some online resale players could potentially experience 100 per cent year-on-year growth.

Though the secondhand luxury apparel market is primarily driven by factors such as affordability, selection availability, uniqueness, consumers’ mounting environmental concerns are also contributing to its growth. Nearly 70 per cent of buyers of preowned clothes are driven by its sustainable factor. Shoppers hope to own fewer, though better items, to reduce overconsumption.

To meet changing needs of consumers, brands should recognize how secondhand consumers can evolve—from occasional shoppers of luxury items to full-fledged brand loyalists. They can capture value from this growing market by selling secondhand themselves, developing their own resale platforms, instituting buy-back programs and partnering with existing resale platforms to leverage outside expertise. According to the report, 62 per cent consumers would buy more from fashion brands that partner with secondhand players.