Perfect circle

Gone are the days when second-hand clothing meant a trip to the local charity shop to rummage through a selection of mothballed cardigans. Today second-hand means big business. Indications are that within ten years, the resale market could be bigger than fast fashion.

By 2023 the second-hand apparel market is estimated to be worth $51bn and a recent survey from thredUP found that 64% of women over 18 are open to buying second-hand clothing - up from 45% in 2016.

Millennials and Generation Z – the "Instagram Generation" – are driving this growth, but not exclusively. Many consumers crave newness and originality, but also care about sustainability. This means they embrace product churn but are also looking for a solution that lengthens the product lifecycle. The rental, resale and refurbishment model addresses this conundrum.

Whilst the faithful charity shop is still very much a stalwart of the sector, a number of platforms have evolved which cater to the more dynamic shopper:

The physical store
Luxury focussed second-hand shops are becoming increasingly prevalent. Think Rolexes and designer handbags, the Designer Exchange in Manchester's Royal Exchange, Boutique by Shelter in London's Coal Drops Yard and Cancer Research `Premium' on Marylebone High Street are all examples, which have the feel of chic boutiques but without the hefty price tag. They provide customer experience and are a great way for consumers to access a brand or product that would otherwise be out of their price range.

In this same way, vintage has experienced an upsurge as an affordable and sustainable alternative to fast fashion. Start-up brands such as Human Sea Vintage and Retold Vintage in London, and Wolf and Gypsy in Brighton have gained momentum behind their brands through social media platforms.

Rental and subscription
Consumers are now able to access the latest designer outfits without the need to purchase. The standard rental model is where consumers rent individual pieces from a business for a fixed period. Examples include Front Row, which enables customers to rent current season luxury designer outfits straight off the runway. Alternatively, peer-to-peer rental is a growing segment, HURR Collective and Our Closet enable consumers to lend or rent outfits via their online platforms.

Subscription services are also gaining momentum: YCloset, Rent-the-runway, Girlmeetsdress and Express Style Trial allow consumers to pay a fixed subscription fee, which gives them access to an array of items on a rotational basis. Most enable consumers to then purchase the items if they wish.

Online marketplaces
Online marketplaces facilitate the resale of items and second-hand purchases. Managed marketplaces adopting the consignment model have the benefit for consumers that items are authenticated and fairly priced. thredUP is one of the largest online fashion resale marketplaces which facilitates the purchasing and reselling of over 35,000 brands (anything from Gap to Gucci), but this sector is also massively growing specifically in the luxury sector for example TheRealReal and Vestiaire Collective. Other leaders in the sector include peer to peer models such as facebook marketplace, Poshmark and app-based Depop.

Social consciousness is also driving brands to offer rewards for acting sustainably, which benefit both consumers and retailers via credit schemes. FarFetch, the leading global technology platform for luxury fashion has introduced a pilot initiative "second life", which allows consumers to sell their designer bags via their online platform, in exchange for FarFetch credit. Stella McCartney has collaborated with TheRealReal and offers consumers an immediate $100 credit to shop at Stella stores if they consign with TheRealReal; and thredUP, whom have collaborated with Reformation to offer every consumer who sends clothes into thredUp via its clean out initiative, credit to spend in Reformation.

Social media and online have been huge facilitators of this sector and whilst still in its infancy, we believe circular fashion is going to be hugely transformative for the retail industry in years to come.

Olivia Gannon