The future of resale clothing is bright. But potential franchisees don’t just want to hear it. They need proof that the business model is poised for growth and success.
Fortunately, the numbers don’t lie. Recent studies and industry deep-dives showcase how much demand is growing for high-quality clothing and accessories from resale shops like Uptown Cheapskate. Take a look at these stats to see just how bright the future of resale is.
The secondhand fashion industry has grown from $5 billion to $36 billion since 2013
In 2013, the secondhand fashion industry was worth $5 billion globally. Today, that number has risen to $36 billion!
Resale fashion has experienced immense growth in the past decade alone. Certainly, this was aided by the pandemic as new shoppers flocked to resale in droves to get fashionable finds at non-retail prices.
The industry is projected to reach $77 billion by 2025
The industry’s growth over the past 10 years is nothing compared to its projected growth in the next five! According to thredUp’s Resale Report published in June 2021, the global secondhand market is estimated to reach $77 billion by 2025.
ThredUp uses research and data from GlobalData, a third-party retail analytics firm. The company asserts that the future growth of the industry will largely be driven by resale, which includes a more curated assortment of items. This is good news for owners of upscale resale stores like Uptown Cheapskate that offer curated selections of in-style items.
Secondhand clothing could be 2 times the size of fast fashion by 2030
The immense growth of resale in recent history paired with emerging trends in fashion buyers’ behavior is positioning resale to overtake fast fashion. ThredUp estimates that the resale clothing market is projected to grow 11 times faster than retail clothing in the next five years.
By 2030, secondhand could be worth $84 billion compared to fast fashion’s $40 billion. That means the resale industry might be twice the size of the fast fashion industry!
More stores are entering the resale market—and more are planning to
According to NARTS, The Association of Resale Professionals, the resale industry as a whole has experienced growth in stores. The number of resale stores has increased by 7% a year for the past two year. Today, there are over 25,000 resale, consignment and not-for-profit resale shops in the United States.
Piggybacking on this growth, more retailers are becoming interested in entering the resale space. ThredUp states that 60% of retailers have or are open to offering secondhand products to their customers. These retailers may be launching their own buyback and resale programs or working with established secondhand clothing businesses.
76% of first-time resale buyers plan to increase their secondhand spend
2020 brought a ton of first-time secondhand shoppers to the market for various reasons. Around 33 million consumers bought secondhand apparel for the first time last year.
As it turns out, these buyers really enjoyed thrifting and buying resale clothing! Approximately 76% of those first-time buyers reported they plan to increase their spending on resale apparel in the next five years.
Over 40% of young buyers have shopped secondhand fashion this year
Those experienced in shopping resale clothing are sticking with it, too—particularly within the younger generations. Over 40% of millennial and Gen Z shoppers purchased secondhand apparel, shoes or accessories between June 2020 and June 2021.
It’s clear that targeting younger buyers is the way to go for resale clothing stores. When looking at future spending, 42% of all consumers and 53% of millennials and Gen Z say they’ll spend more on secondhand in the next five years.
45% of young buyers refuse to shop from non-sustainable brands
Beyond understanding that the industry’s growing, it’s important to acknowledge the factors that are driving that growth. One key driver is the interest in sustainable living.
According to ThredUp, 45% of millennials and Gen Z say they refuse to buy from non-sustainable brands and retailers. When you consider the fact that buying an item used instead of new displaces 17.4 lbs of CO2 emissions, it’s hard to argue that secondhand is one of the most sustainable ways to shop.
Uptown Cheapskate has grown to over 90 locations nationwide
Finally, potential franchisees for Uptown Cheapskate should look at our own business’s success. Since we were founded in 2008, our brand has grown to over 90 locations nationwide—with even more on the way!
We are looking for driven, business-minded entrepreneurs to capitalize on the growth in the resale clothing industry and join our franchise family. Take advantage of these positive trends with your very own business! Learn more about the Uptown Cheapskate franchise opportunity today by filling out our online contact form.