It’s hard to keep track of the ups and downs of retail, especially in such an unstable economy. While brands are developing new strategies to attract their customers, there is a consumer market where shopping is increasing day by day: second hand.

The growth rate of the second-hand market is exciting. The momentum is so high that even luxury brands have already started pressing the resell button. When the numbers are involved, the picture becomes a little clearer and you begin to understand the attitude of brands such as Rolex and Chanel to second-hand sales. According to the latest research, 7% of consumers have second-hand products in their closets. This rate is expected to reach 17% within 10 years. Another report published in 2019 says that the second-hand market in the US will more than triple in 10 years, meaning an increase from $28 billion to $80 billion is expected.

In comparisons with fast fashion, the growth rate of the second hand is remarkable. In the past years, it has been determined that the second-hand market has grown 21 times faster than fast fashion. Of course, the dominance of fast fashion in the market is indisputable. The fact that brands such as Zara and H&M place viral trends on the shelves without wasting time, encourage multiple purchases with their low-price policy and increase their stocks show that the foundation of retail is solid. However, the predictions are surprising again by turning the opposite corner. Despite all this consumption and marketing dominance, the expected growth rate of fast fashion in the next 10 years is 20%, whilst the second-hand market is gaining momentum with 185%.

So, how has the perspective of the pieces that were previously called the old ones changed? The first point that comes to mind is the change in consumer demographics. 64% of millennials and Gen Z are keen on second-hand shopping. The popularization of qualified second-hand applications such as Depop and the improvement of purchasing experience and customer service also make second-hand shopping more accessible. The idea of buying better quality products at a more affordable price is another reason for the increasing interest. Finally, the topic of the age is sustainability and opinions against fast fashion are among the important factors in the growth of the second-hand market.

image 65

Well, where is the place where luxury consumption stops when we have a rapidly developing sector in front of us? Just like fast fashion, the luxury second-hand market is growing faster than luxury retail. 3% to 12% is not a very undeniable difference. Sales of second-hand luxury goods already have a volume of $24 billion. However, there are still question marks besides the encouraging points of the sector.