Despite the fact that the coronavirus pandemic destroyed most of the retail business and began to restrain clothing sales, it is expected that the used clothing market will continue to grow rapidly, according to one of the online resale markets.
The used clothing market today is valued at approximately $ 28 billion and is projected to reach $ 64 billion over the next five years, the ThredUp annual report concludes in partnership with a third-party research firm GlobalData Retail.
It says that the resale market grew 25 times faster than the general retail market last year. An estimated 64 million people bought used goods in 2019.
“Resale is here to stay,” said ThredUp co-founder and CEO James Reinhart. “The next question is who wins and who loses.”
Some experts warn that consumers may refuse to buy used goods because they are thinking about the Covid-19 virus and how it can be transmitted. Some worry that this may remain on the tissues. But according to Reinhart, this fear is not yet apparent in the data.
“A constant news cycle on how the virus is transmitted informed consumers. He is not transmitted in clothes, ”he said. “When it started, we were all worried about take-away food. Now it is safe. Consumers are smart about this. ”
ThredUp, based in San Francisco, has its own website and several stores where consumers can sell their goods and buy resold goods. He calls himself “the world’s largest online commission store.” Experts and analysts are increasingly turning their attention to the company as it works with large retailers including Macy’s, Walmart and Gap. Everyone seems to want a piece of cake.
“Young people are getting smarter than ever about how wasteful [fast fashion] this, “explained Reinhart.” For many years I tried to convince retailers to take care of this. ”
According to the report, second-hand goods are expected to make up 17% of the person’s share in the closet by 2029, compared with 3% in 2009. This would allow us to reserve only 19% of goods purchased at non-priced stores such as TJ Maxx. Meanwhile, it is expected that the proportion of department stores in the cabinet in 2029 will be 7% compared with 22% two decades earlier.
“Department stores admit that they will lose their share if they don’t catch the magic mojo … and what else happens in their clothes,” Reinhart said. “The department store is looking at us to help in some small way.”
Meanwhile, given that America’s unemployment rate is skyrocketing amid this pandemic, more consumers will shop with a limited budget, if any.
Thredup and GlobalData expect used markets, Amazon fashion business, and discounted retailers to be the only three clothing sectors to receive new customers this year.