2020 Resale Report

Foreword

We were just days from publishing our 2020 Resale Report in March when the Covid crisis hit.

Like every business in the world, thredUP paused to focus on the safety of our teams and set a plan for the rest of 2020. At the time, it seemed that Covid had “changed everything.” But is that really true as we look ahead? Here’s what the latest data is telling us:

First, changes that were already afoot in retail are accelerating rapidly. Sheltering in place catalyzed the shift toward shopping online. As a result, opportunities are expanding for the strongest ecommerce and marketplace businesses.

Second, for all the challenges Covid posed to our assumptions about consumer behavior, one thing is clear: consumers everywhere are prioritizing value and accelerating the shift to thrift. When times get uncertain, we all focus on our family balance sheet. Brands whose core proposition delivers value and convenience have the opportunity to gain share. Amazon, off-price, and resale are emerging as winners.

Finally, the youth of the world are more switched on than ever about the health of the planet. With their words, deeds, and dollars, the younger generation is demonstrating a genuine desire to be part of the long-term solution to fashion waste. This should inspire much optimism in all of us. The consciousness of the next generation of consumers is a tailwind for businesses that deliver customer value in a sustainable way.

This year’s Resale Report, unlike any we’ve published, captures insights from two different consumer worlds: pre- and post-Covid. We hope it sparks rich dialogue about the enduring shifts underway and the forces fueling the future of resale.

– Anthony S. Marino
President, thredUP

Resale Growth & The Impact of Covid

Industry Experts Agree: Resale is Set to Soar

"Even as the retail industry has slumped, dragged down by disappointing earnings and an unending trade war, resale is exploding."
– Forbes

"Before the pandemic hit, the resale market was on track to double. Now this growth may very well accelerate. Resale sites are coming out big winners as the pandemic plunges the economy. Analysts predict consumers will turn to sites like thredUP and Rebag to clean out their closets for extra cash...and stuck at home and worried about their finances, they’re hunting for bargains online."

"Bargain hunting, environmental concerns and the sharing economy have erased the stigma of used goods at the same time technology has made thrift shopping more accessible, reliable and cool. Even Kim Kardashian West wears vintage designer duds."

"Thrift shopping has grown tremendously over the past few years and, with the events of the past few months changing the way many consumers look at purchasing, is likely to become more mainstream."

"Americans could begin to change their spending habits in the fallout from this pandemic...More people are embracing frugality or thrift."

"Unlike after the financial crisis, we believe the period after Covid is an opportunity for brands to embrace sustainability and we expect to see a continued, if not accelerated, shift towards sustainable fashion as the economic outlook improves."
Sustainable & Thematic Investing

"There is little doubt that buying habits will change after the pandemic, becoming more deliberate, out of both economic necessity and a shift in values. The kind of instant gratification represented by so much of fast fashion increasingly seems simply wasteful. Understanding what you have that has lasted (and why it has lasted) will help you make better decisions later."

Secondhand Market Set to Hit $64B in the Next 5 Years

Resale is expected to overtake the traditional thrift and donation segment by 2024.

Market Sizing and Growth Estimates (2020)

GlobalData Market Sizing and Growth Estimates

Online Thrifting is a Bright Spot in Broader Covid Retail Slump

With consumers seeking bargains from home, online secondhand is set to grow 69% between 2019 and 2021, while the broader retail sector is projected to shrink 15%.

Growth Indexed to 2019 Market Size

GlobalData Market Sizing and Growth Estimates

thredUP Weathers Covid Storm Better Than Competition

thredUP has maintained 20% growth since shelter-in-place orders started, while other online shopping destinations dipped 24%.

Average year-over-year growth in weekly gross transaction value

*Competitor Benchmark includes an aggregated list of public and private apparel companies that sell primarily online. Source: Second Measure U.S. consumer credit and debit card transaction data

Online Resale Fills Void for Stuck-at-Home Value Seekers

thredUP activity accelerated in April and May, as shoppers found value and entertainment in thrifting.

A Quarantine Clean Out Frenzy

50%
of people are cleaning out their closets more than they were pre-Covid.²

6.5X
more Donation Clean Out Kits ordered in April compared to prior months.⁸

Thrift Shopping as Affordable Fun

2.2M hrs
spent by shoppers browsing thredUP in May— a 31% increase post-Covid.⁸

May 2020
was a record-breaking month for new thredUP visits.⁸

Resale is Poised to Accelerate

Resale is expected to grow 5X over the next 5 years, while retail is projected to shrink.

In 2019, resale grew 25X faster than the broader retail sector. Resale: 49%, Retail: 2%

2019-2024 projected market growth¹

GlobalData Market Sizing and Growth Estimates

In Economic Uncertainty, More Consumers Will Shift to Thrift

Resale delivers value when household budgets shrink.

4 in 5
people say they have or are
open to shopping secondhand
when money gets tight.³

79%
of consumers plan to cut
their apparel budget in the
next 12 months.³

2 in 3
people who have never sold
their clothes are now open
to it. The #1 reason is to
make money.³

88%
of consumers adopted a new thrifty hobby
during Covid that they plan to continue.
(Mending clothes, growing a garden.)³

“The next normal has started to emerge, with consumers indicating they will adopt long-term behavioral changes that will last beyond Covid.”
– McKinsey & Company

Consumers Prioritize Value & Online Shopping Over the Next 12 Months

Where shoppers plan to shift their spend in the next 12 months³

Percent of people
who plan to buy
more

Percent of people
who plan to buy
less

Secondhand, Amazon, and off-price are the only sectors expected to gain customers

Shoppers plan to shift spending to secondhand Chart

Resale Expected to Be Bigger Than Fast Fashion by 2029

Total secondhand market projected to grow to almost twice the size of fast fashion by 2029.¹

thredUP Slows Down the Impact of Fast Fashion

4 million
fast fashion items have been recirculated by thredUP, saving 5.5M lbs of waste.⁸

Retail Turns to Resale During Covid to Meet the Changing Needs of Consumers

The future of retail is one where consumers seek value, do more from home, and further embrace sustainability. Resale x Retail platforms help forward-thinking retailers adapt to a new world.

“Reuse of clothing is an important component of our brand’s sustainability efforts. Even with social distancing in place throughout the country, our community was able to upcycle with thredUP and uplevel with Reebok UNLOCKED”
– Laura Favret, Senior Director Global Brand Strategy

“We know that customers, especially millennials, are interested in shopping resale clothing. We are thrilled to offer our customers the opportunity to reuse garments. We think they’ll be surprised and delighted by what they find.”
– Denise Incandela, SVP and Group General Manager, Fashion Group

Who's Thrifting and Why

There Are More Secondhand Shoppers Than Ever Before

70% of women have or are open to shopping secondhand.

Percentage of women over 18 who have bought or are open to buying secondhand products in the future²

62M

women bought secondhand products in 2019, up from 56M in 2018.²

82% of people have or are open to shopping secondhand when money gets tighter.³

Resale Market is Massive, and It’s Just Getting Started

82% of America hasn’t yet resold clothing, but most consumers are open to doing so.²

18%

of people have ever
resold clothing.

67%

of people who haven’t are open to reselling their clothing.

70% of sellers say they’ll definitely do it again.¹⁰

Top Reasons Why People Sell Their Clothes²

Make extra
cash

Do good for the
environment

Make money to
buy more clothes

Make room in
their closet

Gen Z is Powering the Growth of Secondhand Shopping

Young shoppers are adopting secondhand fashion faster than any other age group.

Percent of each age group that bought secondhand apparel, footwear, or accessories²

Gen Z Prioritizes Sustainability

80% say there’s no stigma to buying used fashion.²

90% of Gen Z shoppers have or are open to shopping secondhand when money gets tight.³

Gen Z shares their
thoughts on thrifting.

Watch Now

Consumers Now Feel Proud to Shop Secondhand

Choosing unsustainable options now elicits feelings of guilt or shame, while being green gives a euphoric mood boost.

Animated meter gif showing buying fast food is guilty and buying secondhand is proud

Shoppers feel as guilty about buying fast fashion as they do about eating fast food.

Shoppers feel as good about buying secondhand clothes as they do about adopting a puppy.

GlobalData Consumer Survey²

Sustainability Goes From Perk to Priority

Nearly 2.5X more consumers plan to shift their spend to sustainable brands.

Percentage of consumers who say they will spend more on sustainable brands within the next 5 years²

Will Covid spark a more sustainable fashion future?

70% of all consumers agree that addressing climate change is more important now than ever.³

Eco-brands like Patagonia and Allbirds are getting 57% more interest on thredUP since Covid.⁸

73% of people plan to support brands who contributed positively to those in need during Covid.³

Stigma to Status:
Celebrities Champion Secondhand

January

Elizabeth Banks shows off Choose Used pin

Red Carpet Advocacy (RAD) launches with a mission to turn the red carpet into a platform for good.

February

Cardi B and Kim Kardashian step out in vintage Thierry Mugler a mere few weeks apart.

March

Meghan Markle and Amal Clooney shop from the same vintage dealer in the UK.

April

Olivia Wilde partners with thredUP to launch an exclusive collection of Choose Used tees.

May

Tiffany Haddish proudly rewears her Alexander McQueen dress for the 5th time on David Letterman.

June

Big Little Lies costume designer Alix Friedberg sources luxury consignment for the hit HBO show.

July

Kate Middleton royally rewears her Dolce & Gabbana dress at Wimbledon’s Women’s Final.

August

Oxfam challenges celebrities and consumers to buy nothing new for 30 days.

September

Gwyneth Paltrow wears a vintage Valentino gown to present an award at the Emmy’s.

October

Kardashian-Jenner family launch resale apparel site Kardashian Kloset.

November

Jane Fonda promises that her ubiquitous red coat is the last piece of clothing she’ll ever buy.

December

Anna Wintour promotes circular fashion saying, “[It’s all about] valuing the clothes that you own and wearing them again and again, and maybe giving them on to your daughter, or son, whatever the case may be.