The State of Fashion 2026: Why Resale Is Becoming the New Growth Engine for Retail

Consumer behavior is shifting faster than most retailers expected. According to the newly released State of Fashion 2026 report by The Business of Fashion and McKinsey, resale is no longer a fringe experiment. It’s becoming one of the most important strategic levers for brands and retailers worldwide. The report provides a clear message: resale is entering its scaling era, powered by consumers looking for value, brands looking for differentiation, and technology finally making resale operations efficient. Below are the key insights, and why they matter for the future of resale.

1. Resale is growing 2–3x faster than the traditional fashion market

The report expects secondhand fashion to grow two to three times faster than primary retail by 2027. This is an acceleration driven by consumer price sensitivity, supply constraints, rising tariffs, and a move toward better value.

For resale operators, this is the strongest market signal we’ve ever seen. Consumer demand is not the problem. The real challenge is supply, operations, and scalability. Retailers who adopt resale now position themselves where the growth is happening.

2. Almost 60% of global consumers plan to shop secondhand in 2026

In some markets - like China - over 70% of consumers say they will shop resale next year. This is not only a Gen Z trend; older shoppers are joining too. People want:

  • affordability
  • unique items
  • quality and durability
  • sustainability
  • the “treasure hunt” experience

Resale has gone mainstream. Shoppers now expect it.

3. Resale marketplaces have made secondhand mainstream - but brands and retailers are the next wave

The first era of resale was dominated by peer-to-peer marketplaces. The next era will be retailer-led and brand-led resale.

The report highlights that more brands are launching resale programs, but most are still early. Retailers already have the physical footprint, the customer trust, and the supply flow - what was missing until now was operational capacity.

This is why technology-enabled in-store resale is starting to scale fast.

4. Efficiency is replacing experimentation: resale must now be profitable

Historically, resale was considered “nice to have” but operationally heavy. Platforms like Vinted and The RealReal struggled with profitability due to:

  • manual processing
  • slow intake
  • authentication burden
  • expensive logistics
  • one-of-a-kind inventory

The report shows this has changed. With AI-powered intake, automation, and improved logistics, resale is finally reaching profitability at scale.

This matters because brands and retailers no longer need to run resale as a marketing cost. It can become a revenue driver.

5. Resale is now a strategic commercial lever, not just a sustainability initiative

The report identifies three major commercial advantages for brands entering resale:

Customer acquisition Nearly half of shoppers who discover a brand through resale later buy it new.

Brand perception Strong resale value signals durability and quality - something consumers now actively look for.

Customer loyalty Trade-in programs create loyalty loops where pre-owned items generate new full-price sales.

Retailers that integrate resale into their business model build deeper, more durable customer relationships.

6. Market dynamics differ by region and category

The report highlights clear differences across markets:

  • In the US and China, high-value categories like outerwear, bags, watches, and jewelry dominate.
  • In the UK, trend-led categories and occasion wear are top performers.
  • Globally, categories perceived as durable do best.

This reinforces an important truth: resale is not a one-size-fits-all model. Local data, category mix, and customer behavior matter.

7. Operational hurdles remain, and technology is the unlock

The biggest challenges named in the report mirror what retailers experience every day:

  • product intake takes too long
  • listing and pricing are inconsistent
  • quality control is difficult
  • logistics become expensive
  • every item is unique, which breaks traditional retail systems

This is where the industry is now making its biggest leap. AI-driven intake, automated pricing suggestions, smart workflows, and software built for single-SKU retail are removing the biggest bottlenecks.

Resale is shifting from manual craft to scalable retail.

8. Regulation will push brands toward circularity even faster

New laws like the EU’s Ecodesign regulation and California’s textile recovery act put financial pressure on brands with wasteful inventory practices. Fines for unsold stock and new end-of-life responsibilities will push more brands to launch circular programs.

Resale will become a compliance strategy as much as a commercial one.

9. We are entering the infrastructure phase of resale

The report outlines three models brands can choose:

  • marketplace partnerships
  • resale-as-a-service
  • fully in-house resale operations

But underlying all these models is the same need: infrastructure.

Retailers need better tools for intake, pricing, inventory management, seller payouts, and analytics. Brands need the ability to run resale at scale without building a giant operations team.

The next winners in resale will be the companies that build scalable systems.

10. The big picture: resale is no longer a niche. It’s becoming the standard.

The State of Fashion 2026 makes one thing unmistakably clear:

Resale is transitioning from trend to infrastructure. From marketing to margin. From experiment to expectation.

Retailers that build circular models today will be the ones consumers trust tomorrow.

The opportunity is here - and this time, it’s not hype. It’s backed by data, by global consumer behavior, and by technology that finally makes resale scalable.

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