Research into consumer behavior identifies several factors influencing the decision to use these stores: An Online Consignment & Thrift Store - ThredUp
The secondhand apparel market—comprising stores that buy and resell used clothing—is a rapidly expanding sector projected to reach . Research indicates this growth is nearly three times faster than the traditional retail apparel industry, driven by economic uncertainty, a shift toward sustainable values among younger generations, and the rise of digital "re-commerce" platforms. The Business Model: Circular Economy vs. Hidden Waste a store that buys used clothes
Academic and industry analysis identifies two primary ways these stores operate: Hidden Waste Academic and industry analysis identifies two
Major brands are increasingly launching their own resale programs to capture this revenue, with 47% of consumers more likely to buy from a brand if they offer credit for trade-ins. Consumer Psychology and Barriers driven by economic uncertainty
Gen Z and Millennials are the primary drivers, with roughly 70% of secondhand spending expected to come from these groups by 2029.
Recent data from Forbes highlights that men are adopting resale more aggressively than women, with 44% of men planning to shop resale in the next year compared to 34% of women.
Stores acquire goods through direct purchases from customers, consignment (paying the seller only after a sale), or donations. Modern platforms like ThredUp have automated this by providing "Clean Out Kits" to handle inspection and listing.