Covid-19 boosts global luxury resale market to grow better



According to the latest research by BCG (Boston Consulting Group), the average annual growth rate of the global luxury resale market is 12%, much faster than the average growth of the luxury fashion market is 3%.  

According to ThredUp, the world's largest online second-hand fashion luxury products business, the resale business model is growing very well during the Covid-19 outbreak. 

Accordingly, during the period from March to the end of May, this business has maintained a growth rate of 20% since the social isolation order was enacted, while other fashion trade models decreased up to 24%.

In addition, the global luxury resale market is expected to grow from $28 billion in 2019 to $64 billion by 2024, accounting for 7% of the luxury fashion market.

According to statistics by ThredUP, Millennials and Gen Z (those born between 1996-2005) are the ones who adopt the second-hand luxury fashion trend 2.5 times faster than other age groups.

Covid-19 boosts global luxury resale market to grow better

Millennials and Gen Z adopt the second-hand luxury fashion trend 2.5 times faster than other age groups / ph: pexels

Gen Z and late-Millennial is a generation of young people who love to represent and assert themselves through strongly developing social networking platforms such as Facebook, Instagram, Tiktok, Snapchat ...

Paralleling with demand of expressing themselves through fashion, this generation is also oriented and instilled with the ideology of sustainable fashion, extremely strong environmental protection and climate change.  

Especially, Covid-19 epidemic made many people concerned about health issues and more deeply aware of the living environment. Therefore, consumption decisions also follow a more sustainable trend.  

Covid-19 social isolation shaped a new way of life. 

During the Covid-19 social isolation period, the number of people doing the cleaning and sorting of second hand clothes was huge.  Most of them will choose to sell old fashioned clothes for the right reasons: to make money, recycle for the environment, clean the closet or make money to buy other second-hand clothes.   

With the progress of Covid-19, more and more people will buy second-hand luxury products to save costs, but at the same time, relieve psychology of isolation or economic problems, and other arising in the difficult period.  

Covid-19 is the launching pad that drives the global luxury resale market to grow better. 

According to experts, over the next five years, the growth in the global luxury resale market will increase by 52%, rental luxury services will increase by 28%, and sustainable fashion is 43%, while fast fashion will be reduced by 24% and shopping malls by 44%.

Covid-19 boosts global luxury resale market to grow better

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