The Second-Hand Market Goes Mainstream

Trends in the market and with customers

The market for used clothes around the world has grown from $141 billion in 2021 to $230 billion in 2024, and it’s expected to reach $350 billion by 2028. The second-hand luxury market has grown especially quickly, with sales of used items rising by 125% from 2017 to 2023.

Young people are the ones who are driving this trend. Millennials and people in Generation Z buy used items at least every few months, while only 20% of baby boomers do the same. This change shows how people’s ideas about value and sustainability are changing.

Major Brands’ Projects

Ikea

• Ikea Preowned started a marketplace for used goods in Madrid and Oslo
• Allows people to sell furniture to each other
• Gives a 15% bonus for using store vouchers instead of cash
• Currently free

Lego

• Replay service was launched in the US, Canada, and the UK
• Has been donated with almost 500 tons of bricks
• You can currently ship only from US state (including Alaska and Hawaii)



Problems and worries of second-hand businesses

Complexity of Operations

• Complex processes for sorting and verifying
• Costs are high for reverse logistics
• Need for specialized knowledge in judging goods

Good Quality and Fraud

• Concerns about the authenticity of high-end items
• Different levels of quality
• Possible abuse of the system
• Effects on donations to charity

Effects on Industry

People are giving away less valuable items and selling their best ones on new platforms, which is changing the traditional charity sector.

Even though there are problems, the second-hand market keeps growing as businesses look for environmentally friendly ways to run their businesses and consumers accept the ideas behind the circular economy.

To be successful in this field, you need to know how to handle complicated logistics, keep an eye on quality, earn customers’ trust, and keep costs low.