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July 23, 2025

Do Fashion Retailers Who Ignore Apparel Resale’s Evolution Risk Obsolescence?

Fashion and apparel resale has been a big business for some time, with prominent players such as Poshmark, The RealReal, and ThredUp proving that there’s a market for quality secondhand garments and accessories.

Now, according to a recent piece from Forbes contributor Kristen Classi-Zummo, the resale market is undergoing a shift away from “the romantic notion of resale as a treasure hunt for vintage gems” into something broader, with greater market implications beyond the initial stakes.

While One-Third of Consumers Purchase From Resale Sites, Motivations Have Shifted

Citing Circana data, Classi-Zummo pointed out that online resale sites were enjoying broad-based support from consumers — a third had purchased from these sellers over the course the past 12 months. Also, a primary motivation of price emerged: Half of resale shoppers bought items specifically because they perceived the items purchased to be priced as bargains, versus just 23% who snagged items based on them being “hard-to-find.”

And while a significant cohort of those who did so indicated that they had been shopping for the often-presumed luxury or designer brands (31%), a second statistic was perhaps more interesting: A full 34% said they were instead shopping resale sites for mass or specialty brands.

“This isn’t about aspirational shopping anymore—it’s about stretching purchasing power. In an inflationary environment where tariffs threaten to push clothing prices even higher, resale offers consumers access to the same brands they’d buy new, just at sustainable price points,” Classi-Zummo wrote.

She pointed to tariffs and import costs rising and general macroeconomic conditions as generating a new paradigm in which fashion resale was no longer competing only with vintage boutiques, but more pertinently with department store sales floors.

Shifting Interests: Men Shopped Resale Sites More Frequently Than Women, and Gen Z Is Creating a Circular Commerce Loop

In another interesting angle, Classi-Zummo pointed to survey data — seemingly pulled from ThredUp’s most recent annual report — indicating that a greater proportion of men (34%) had shopped resale sites over the past 12 months as opposed to women (29%). Further, concerning the 12 months to come, nearly half (44%) of men stated intentions to shop resale, while just over one-third (34%) of women said the same.

“This 10-point intention gap signals untapped potential that most platforms are ignoring. While resale marketing continues targeting female sustainability advocates, male consumers are quietly embracing the channel. Brands and platforms focusing on this demographic could capture disproportionate growth,” the author added.

Further, among 18-34 year olds, 46% said they’d sold clothing via resale, something Classi-Zummo indicated that — alongside headline-making news of the Klarna-Poshmark BNPL partnership — signaled a boom in circular commerce loops. Younger consumers appeared to be highly motivated by resale potential when buying into initial purchases, which could end up pressuring an already embattled fast-fashion ecosystem built on disposable but cheap garments.

The end result?

“The implications extend far beyond resale platforms. As secondhand shopping becomes mainstream price comparison, traditional retailers face a new competitive reality. Every new item now competes against its secondhand equivalent, forcing brands to justify premium pricing through quality, experience, or immediate availability,” Classi-Zummo suggested.

“Retailers ignoring this shift risk obsolescence. Those embracing it—through certified pre-owned programs, trade-in initiatives, or resale partnerships—position themselves within the circular economy rather than outside it,” she added.

Discussion Questions

Will fashion retailers who fail to adopt resale integration into their operations, at least in some form, face sales consequences? If so, to what degree? If not, why not?

Is Classi-Zummo’s statement regarding a risk of obsolescence accurate? How important will a circular commerce loop regarding apparel be to most U.S. consumers, in your opinion?

Is there an untapped market regarding men’s clothing in the apparel resale business, as suggested? How can traditional retailers leverage this data to their benefit, if this potential does exist?

Poll

14 Comments
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Neil Saunders

To risk obsolescence, one would have to assume that the market for new apparel will disappear or shrink to the point that it becomes insignificant. It will not. In ten years, the market for new will still be way bigger than the market for secondhand. That said, resale is on a growth spurt, and the majority of consumers now participate in the segment in some way. This is an opportunity for brands – both to generate revenue and to play a role in the circular economy. However, resale is not easy – especially because it involves intake of product and selling. That’s why many traditional retailers partner with a resale firm like ThredUp.

Craig Sundstrom
Craig Sundstrom
Noble Member
Reply to  Neil Saunders

Yes, people who think the market for second hand goods will – or even can – be bigger than new goods will have to explain the physics to me (i.e. how something can be the former without first being the latter). Fashion retailers biggest problem is that the concept of “fashion” is on the endangered species list.

Neil Saunders
Famed Member

Well, quite. That math ain’t mathing!

AbbyEarsman
AbbyEarsman
Reply to  Neil Saunders

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Last edited 3 months ago by AbbyEarsman
Mark Ryski

While I don’t believe that it’s imperative that fashion retailers integrate resale into their operations, for many it’s an opportunity – and maybe a big one. According to some sources, more than half of consumers purchased pre-owned apparel last year. I was surprised that it was that high. The fact is circular commerce is a major trend driven in part by inflation and concerns about the environmental impact of fast fashion. All retailers should be mindful of this resale trend and consider how it might work in their chain or brand. If retailers don’t want to manage their own resale program, there are plenty of partnership opportunities to explore. 

Cathy Hotka
Cathy Hotka

Many customers love resale, but they don’t expect it at full-price retail. That said, retailers should consider why resale exploded in recent years.

Gene Detroyer
Famed Member
Reply to  Cathy Hotka

I suspect that customers not only don’t expect these two categories to be in the same place, but they also don’t want them.

Gene Detroyer

Obsolescence is a big word.

Neil Saunders
Famed Member
Reply to  Gene Detroyer

Also a hyperbolic word!

Brian Numainville

Higher prices and inflation touches shoppers in a variety of ways. Whether it means purchasing more private brand items in supermarkets or moving to secondhand clothing, shoppers are finding ways to strategize in this environment, and I expect that to continue for the foreseeable future. Retailers need to pay close attention to these trends and pivot where needed.

Mohamed Amer, PhD

The obsolescence framing is overblown- numbers don’t support this. However, the underlying trend deserves serious attention. The primary threat is margin compression, as consumers gain transparency to compare new items with secondhand equivalents, which forces retailers to justify premium pricing through quality and experience rather than brand mystique alone.

The operational hurdle is non-trivial. Most fashion retailers are forward logistics operations optimized for sourcing and buying with predictable inventory flows. Resale demands reverse logistics capabilities—such as authentication, condition assessment, and unpredictable inventory management—that are fundamentally incompatible with retail’s core competencies. It’s conceptually similar to luxury auto brands in the 1990s, which activated certified pre-owned programs to manage end-of-lease returns inventory, but is significantly more complex operationally.

The better strategic play isn’t direct integration but selective engagement through partnerships with resale specialists. This allows retailers to maintain customer touchpoints and gather competitive intelligence without the operational complexity, although the business case for even these partnerships remains unproven for most retailers. Fashion resale is not an opportunity for a new kind of vertical integration; however, brands seeking to control their secondary market can be more optimistic as they face a different set of trade-offs.

Jeff Sward

Surely there is a business model where an apparel brand can always offer a flow of new, fresh product, AND not over-produce/over-buy, AND recycle products where it makes sense from both a fashion and durability point of view. AND be profitable within each layer. I know…that’s a lot of AND’s, but the current apparel model keeps contributing to landfills, and that’s just crazy. Of course the market for new is not going to evaporate, but it seems like the market for second-hand is vastly underutilized.

Gene Detroyer
Famed Member
Reply to  Jeff Sward

Of course there is. Just nobody wants to execute it.

Nolan Wheeler
Nolan Wheeler

Retailers should consider the impact of resale. As more consumers turn to secondhand options for affordability and sustainability, brands need to find ways to differentiate. Offering value that resale can’t match – like better customer experience, services, warranties, or return policies – can encourage people to choose new over secondhand.

BrainTrust

"Many customers love resale, but they don’t expect it at full-price retail. That said, retailers should consider why resale exploded in recent years."
Avatar of Cathy Hotka

Cathy Hotka

Principal, Cathy Hotka & Associates


"While I don’t believe that it’s imperative that fashion retailers integrate resale into their operations, for many it’s an opportunity – and maybe a big one."
Avatar of Mark Ryski

Mark Ryski

Founder, CEO & Author, HeadCount Corporation


"To risk obsolescence, one would have to assume that the market for new apparel will disappear or shrink to the point that it becomes insignificant. It will not."
Avatar of Neil Saunders

Neil Saunders

Managing Director, GlobalData


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