The secondhand fashion and luxury market is growing three times faster than the market for new products and will be worth between $320 billion and $360 billion by 2030, a study conducted by Boston Consulting Group (BCG) and Vestiaire Collective has found.
The study estimated that this market was currently worth between $210 billion and $220 billion, implying growth of around 50% by 2030, with sales expected to grow by around 10% a year for the rest of the decade.
The research, based on a survey of 7,800 customers of luxury resale site Vestiaire Collective, found that 28% of all wardrobe items are now secondhand, compared with 21% five years ago. U.S. respondents demonstrated a higher adoption rate: their wardrobes were 32% secondhand on average, compared with 27% for respondents in Europe.
More than half of the secondhand items owned by respondents had been bought using multibrand resale sites, such as Vinted, the RealReal and Vestiaire Collective.
Resale is especially attractive to consumers who want to buy affordable luxury, the research found: “Over half of respondents said they prefer buying premium labels secondhand, rather than settling for more affordable firsthand alternatives,” it stated.
BCG concluded by advising brands that “the secondhand fashion and luxury market has evolved from an emerging trend to a strategic imperative,” and noting that in future, successful brands would need to strike a balance between new and secondhand sales.
