In a world where possessions often come and go, fashion stands out as a unique and ever-evolving industry. Fashion is not just about what you wear; it's a reflection of your identity and a statement of your style. While some items may last a lifetime, the fashion industry is characterized by its constant flux and the pursuit of the latest trends. This article delves into the changing landscape of fashion, highlighting the shift towards second-hand clothing and its impact on the market.
Fashion on the Spectrum of Possessions
Goods, whether a cup of coffee or a diamond ring, exist on a spectrum of possessions. At one end, you find consumables that provide immediate gratification, while at the other, investment goods like houses and diamonds offer long-term value. Fashion occupies the middle ground, with durability and desirability determining its place on the spectrum.

Fashion in an Era of Excess
In today's world, people allocate a smaller portion of their income to clothing, yet the number of items they purchase annually has skyrocketed. Unfortunately, many of these items are worn only a few times before being discarded. Shockingly, 95% of discarded clothing in the United States could have been reused or resold. This wasteful behavior has profound environmental consequences, with clothing manufacturing and distribution contributing significantly to global carbon emissions.
The Technology Transformation
The rise of technology has ushered in a new era in the fashion industry, revolutionizing the resale market. Just as Airbnb and Uber harnessed technology to create sharing economies for lodging and transportation, fashion resellers have followed suit. Online platforms like The RealReal, ThredUP, Depop, and Poshmark have transformed the resale of clothing, making it easier for individuals to buy, sell, and rent fashion items.
Resale's Astonishing Growth
In 2021, the resale clothing market reached approximately $15 billion, a remarkable increase from less than $1 billion in 2013. Adding in the $21 billion spent on garments from charity and thrift shops, the total spent on second-hand fashion, around $36 billion, outpaces the fast fashion market. By 2025, the value of resold and thrifted clothing is projected to soar to $77 billion, with resale revenues tripling to $47 billion annually.
Resale Business Models
Various resale platforms have emerged, catering to different niches within the market. For instance, The RealReal and Vestiaire Collective focus on higher-end fashion items and provide a curated experience for buyers and sellers, even authenticating garments. ThredUP accepts a wide range of items, sorts them, and offers them for sale, with sellers receiving a percentage of the sale price. Peer-to-peer platforms like Depop and Poshmark allow users to list their own items and charge flat-rate commissions.
Retailers Embrace Resale
Traditional retailers have also recognized the potential of second-hand fashion. Brands like Madewell collaborate with resale platforms, offering preloved items alongside new products in their stores. Many major retailers use resale platforms like ThredUP to tap into the growing market for second-hand clothing.

The COVID-19 pandemic contributed to the growth of the resale market as people had more time to clean out their closets and explore second-hand fashion online. An estimated 33 million new buyers and 36 million new sellers entered the market in 2020, further fueling the trend. The perception of second-hand clothing has shifted significantly. What was once considered uncool is now trendy, with influencers proudly showcasing their thrift store finds. Consumers are becoming more conscious of the value of high-quality garments that can retain their worth on the resale market. The fashion industry is undergoing a profound transformation, with second-hand clothing gaining prominence. Resale platforms are redefining the way we buy and sell fashion items, and retailers are adapting to this shift. As fashion tastes evolve, the allure of second-hand fashion grows stronger, creating a self-reinforcing cycle that is reshaping the future of the industry. The days of disposable fashion may be numbered as consumers embrace the sustainability and value offered by the resale market.