Resale platforms expected to see continued growth in 2021

The fashion industry seems to be undergoing a major transformation due to the global pandemic of the COVID-19 pandemic . During the pandemic, consumer demand for second-hand clothing has surged , which has also driven the booming development of resale platforms in the past two years .

According to a report released by research and analysis company GlobalData and ThredUp , with the closure of physical stores during the epidemic and the booming of e-commerce, resale platforms such as Poshmark, ThredUp, The RealReal , and millennial favorite Depop have seen amazing growth . In 2020 , sales in the resale category increased by 25% compared to 2019.

The resale market is expected to continue to grow. Secondhand clothing, footwear and accessories are currently worth $30 billion to $40 billion worldwide , according to Boston Consulting Group, and the resale market is expected to grow 15% to 20% annually over the next five years.

Poshmark's senior vice president of new markets, Tracy Sun, believes that they have only scratched the surface of the resale market . Tracy Sun said that when Poshmark was first established 10 years ago , resale was still a novelty . Today , the resale market has huge opportunities and consumer demand for second-hand goods is growing exponentially.

Poshmark said in its second-quarter earnings report that the total transaction volume on the platform in the quarter was US$449.6 million, a year-on-year increase of 25% . At the same time, Depop's gross merchandise sales also doubled in 2020 , with Depop 's merchandise sales of approximately US$650 million and net income of US$70 million in 2020 .

As the resale market becomes increasingly popular , many brands , including some luxury brands , have begun to accept resale as a protection mechanism to prevent the proliferation of counterfeits . In October 2020, Gucci began to establish a partnership with The RealReal, and Neiman Marcus announced in April this year that it would resell bags and accessories through the resale website Fashionphile.

The change in consumers' shopping habits is driving the rapid growth of the resale market. As the COVID-19 pandemic continues to hit the global economy, consumers are giving more priority to the value of goods when shopping, which is driving a shift in consumer habits toward frugality. At the same time, the millennial generation's pursuit of environmentally friendly and sustainable goods is also one of the driving forces behind the rapid development of the resale market.

The concept of resale is becoming more and more popular . The current demand for resale is not limited to clothing . Electronics, household items, collectibles and other categories all have great potential in the resale market. The number of new sellers in the resale market is surging. Sellers who are interested in this "cake" can learn more about relevant information and seize market opportunities.

Resale Platform

Second-hand market