Second-Hand Fashion: How First-Hand Brands can Compete and Thrive

The second-hand market is no longer a niche – it is now a mainstream force, growing at ~20% CAGR. In the UK the second-hand fashion market has grown to in excess of £7bn with nearly 1 in 4 fashion transactions now resale. This growth, largely driven by online channels which now account for about 50% of second-hand sales, is shifting the dynamics of the apparel industry, with consumers increasingly valuing affordability, sustainability and unique finds.

For first-hand brands and retailers, this presents both a challenge and an opportunity. While volumes of traditional retail sales are projected to stagnate, the second-hand market is projected to double by 2029 and claim up to 10% of the fashion wallet. Brands must adapt now to stay ahead.

The Second-Hand Market is Booming

Recent years have seen accelerated growth in the resale market, with particular focus on growth in online channels. In particular, the UK, France and Poland have seen significant penetration with 30% of adults participating as buyers, with significantly higher engagement among millennial women. Market projections suggest that by 2029, online resale could double in size and reach between €6-9 billion in major European markets. The two key forces driving growth being increase in participants and spend per buyer.

The rapid expansion of second-hand marketplaces is both adding liquidity to and displacing volume from the first-hand market, providing more choice for consumers and reshaping consumer behaviour. Retailers that ignore resale risk losing wallet share to digital resale platforms – and understanding how to compete or collaborate with the resale economy is critical for long-term success.

Why Consumers are Choosing Second-Hand Fashion

Consumers are drawn to second-hand fashion for several reasons:

Price Sensitivity: 40-50% of buyers cite bargain hunting as the primary motivation for second-hand shopping. Financial factors are also strong motivators to sell second hand apparel online, with 20-30% of consumers selling to make some money of the side

Sustainability: while not the main driver, 10-20% of consumers choose resale for environmental reasons

Access to premium brands and new aesthetics: many shoppers use resale to acquire high-end fashion at a fraction of the price. Second-hand shopping also offers a treasure hunt experience, with 20-30% of shoppers citing this as a motivator.

Consumers are increasingly valuing sustainability and affordability – first-hand brands that want to remain competitive must recognise this and address consumer demand.