Resale's Next Chapter: 6 Key Findings from the BCG Report

1. Resale Is Growing 2-3x Faster Than New Fashion

The headline number: secondhand fashion grows at twice the rate of new fashion through 2027. BCG projects the market reaching $320-360 billion by 2030, up from $210-220 billion today.

Economics drives this more than sustainability.

BCG surveyed 7,800 consumers. Nearly 80% cited affordability as their primary reason for buying secondhand. In the US, that number is 87%.

Sustainability matters too. 40% mentioned it, but it's not the primary driver.

Inflation pushed consumers toward value. Once they discovered resale quality, they stayed.

And they're not dabbling. The average consumer's closet is already 28% secondhand. For handbags, it's 40%. Gen Z is even higher: 32% of their closets, 45% for handbags.

Resale has moved from trend to default.

2. Brands Are Losing Control of Their Resale Market

This is the finding that should worry brand executives.

Your customers resell your products. Right now. Today. On Vinted, Depop, Poshmark, eBay. You have zero visibility into those transactions.

BCG found that brands participating in their own resale capture customer data, influence pricing, and maintain customer relationship continuity.

The brands sitting out watch their products trade hands without them.

Over 55% of secondhand purchases now happen through online platforms. The transactions are happening whether you're involved or not. The only question is whether you have a seat at the table.

3. The "Resale Readiness" Gap Is Real

Most brands know resale matters. Few have the operational capability to act on it.

BCG highlights operational complexity as a key barrier. Reading between the lines, four challenges emerge:

Intake operations
No system for processing returned or traded items. Staff improvise. Quality is inconsistent. The back room becomes a bottleneck.

Pricing
No data on secondhand value of their own products. Teams guess based on original retail price. They leave money on the table or price items out of the market.

Inventory management
SKU-based systems designed for new retail can't handle one-of-a-kind. Every secondhand item is unique. Condition varies. Traditional inventory software breaks.

Seller and customer management
No workflow for trade-in participants. No way to track consignors. No automated payouts. Manual spreadsheets and email chains.

Building resale operations from scratch is a significant undertaking. An infrastructure project, not a marketing decision. (ps: you dont have to build it from scratch - learn more about how to get started with branded resale here)

4. Resale Is Becoming a Growth Channel, Not a Marketing Initiative

Early brand resale programs were PR exercises. "Look, we're sustainable."

Low volume. High cost. Justified as brand building.

BCG documents the shift: leading brands now treat resale as revenue.

The economics work when you stop treating resale as a side project:

• Trade-in programs drive new purchases (44% of sellers use proceeds to buy more secondhand, 18% to buy new)
• Resale reaches customers who can't afford full price (66% discovered a brand through secondhand)

Leading brands are generating real resale revenue. Moving from a side project within PR and Communications to a business line.

One stat reinforces this: 80% of Gen Z consumers discovered new brands through secondhand shopping. Compare that to 66% overall. Resale recruits future customers.

5. Operational Infrastructure Determines Winners

BCG outlines three models for brand resale:

Model 1: Owned channels
Trade-in and resale via brand-owned stores or websites. High control, high investment.

Model 2: Platform partnerships
Co-branded resale through marketplace platforms like Vestiaire Collective. Balanced scale and brand alignment.

Model 3: Light-touch pilots
Consignment, take-back campaigns, or curated archive drops. Low effort, flexible entry points.

BCG explains why doing it alone is hard:

Liquidity: Not enough items flowing through. Chicken-and-egg problem. No inventory means no buyers. No buyers means no sellers bringing items.

Operational complexity: Every item is unique. Photo it, describe it, price it, list it. Repeat 500 times. Unlike new retail where you receive a box of identical shirts.

Inventory management: Your systems expect SKUs. One code, many identical items. Resale is one-of-one. Traditional software breaks.

Access to resale-focused customers: Your customers buy new. Resale shoppers are on Vinted and Depop. You don't have them in your database.

The model you choose matters less than whether you can actually execute it.

Execution separates winners from everyone else.

6. Resale as Brand Discovery Channel

This might be the most underrated finding in the report.

66% of respondents said resale enabled them to discover or buy a brand for the first time. Up from 59% in 2022.

For Gen Z, it's even higher: 80% bought or discovered a new brand through secondhand.

BCG describes resale as "both a discovery engine and a recruitment channel" that connects consumers with brands they might not otherwise access.

This flips the cannibalization narrative. Resale creates new customers.

US vs Europe: Two Different Markets

BCG's data shows the resale market isn't monolithic.

United States:
- 32% of closets are secondhand (above global average)
- Handbags: 66% secondhand penetration
- 87% cite affordability as primary driver
- Americans are roughly 4x more likely to treat resale as a part-time or full-time job
- 50% sell to earn money (vs 40% in Europe)

Europe:
- Stronger focus on wardrobe curation
- 70%+ in Germany and Italy motivated by decluttering
- More lifestyle-driven than deal-driven

BCG notes: "In the US, secondhand behavior is markedly more transactional and value-led."

If you're building for both markets, one-size-fits-all won't work.

What This Means for Operators

If you run a resale business, whether a thrift store, consignment shop, or vintage boutique, BCG's report confirms what you're seeing on the ground.

Demand is there. Operations is the bottleneck.

The numbers:

- 55% of purchases happen online
- 66% of sellers are motivated by decluttering
- 80% of Gen Z discovered new brands through secondhand

You feed new retail.

Read the Full Report

The complete "Resale's Next Chapter" report is available from Boston Consulting Group and Vestiaire Collective.

Frequently Asked Questions

What is "Resale's Next Chapter"?

"Resale's Next Chapter" is an October 2025 report by Boston Consulting Group and Vestiaire Collective analyzing the secondhand fashion market. Based on a survey of 7,800 consumers, it projects resale growing 2-3x faster than new fashion.

What are the key findings of the BCG resale report?

The six key findings: (1) Resale grows 2-3x faster than new fashion, driven primarily by economics, (2) Brands lose visibility when customers resell on third-party platforms, (3) Most brands lack operational capability for resale, (4) Leading brands now treat resale as revenue not marketing, (5) The three resale models (owned, partnership, light-touch) each have tradeoffs, (6) 66% of consumers discovered a brand through secondhand, making resale a customer acquisition channel.

How big is the secondhand fashion market?

According to BCG, the global secondhand fashion market is currently $210-220 billion and projected to reach $320-360 billion by 2030 (BCG, 2025), growing 2-3x faster than new fashion retail.

What percentage of closets are secondhand?

BCG's survey found the average closet is 28% secondhand. For handbags, it's 40%. Gen Z skews higher: 32% of their closets are secondhand, 45% for handbags.

Why do consumers buy secondhand fashion?

Nearly 80% cite affordability as their primary reason. In the US, 87%. Sustainability is cited by 40% globally.

What are the three resale models BCG identifies?

BCG outlines three models: owned channels (trade-in and resale via brand stores or websites), platform partnerships (co-branded resale through marketplaces like Vestiaire Collective), and light-touch pilots (consignment, take-back campaigns, or archive drops - often using software like Circular Resale).