The Second-Hand Boom in All Segments of Fashion in America

Vintage and Second-Hand Fashion: How Fashion Resale Will Change Over the Next Two Years

The second-hand market is no longer just a passing trend; it’s a growing phenomenon reshaping the fashion industry. Brands, retailers, and third-party marketplaces are working together to scale circular fashion, spanning luxury boutiques, mainstream digitalization, and innovative reverse logistics systems.

The global luxury second-hand market, currently valued at $25–30 billion (with $11 billion in the U.S. alone, the epicenter of this market), is thriving. According to a report by McKinsey & Company, the second-hand market is expected to grow by 10–15% annually over the next decade. While most re-commerce sales still occur in physical stores, specialized digital trading platforms and third-party marketplaces like The RealReal, ThredUp, eBay, and Vinted hold a 25–30% market share. They are driving much of the industry’s growth.

Luxury Resale Platforms and Digitalization

Multi-brand retailers like Farfetch and Net-a-Porter are also embracing the resale trend, leveraging extensive consumer data to offer thousands of luxury labels in their pre-loved sections. Farfetch, for instance, has a thriving Pre-Owned category where users can buy and sell second-hand luxury items. Additionally, the Farfetch Fix service allows customers to repair bags or shoes, providing quotes for pickup, repair, and delivery.

Luxury Brands Enter the Resale Market

High-end fashion houses are increasingly creating their own resale offerings. According to McKinsey, the benefits outweigh the risks, with 54% of American consumers stating they view luxury brands that embrace resale positively. Moreover, 46% of respondents indicated they would be more likely to purchase new products from brands offering used items. This marks the beginning of a new era in the U.S. luxury market, where vintage adds value, akin to art and antiques.

For hesitant luxury players, McKinsey suggests targeting specific American demographics, like collectors, or streamlining the product exchange process for customers looking to refresh their wardrobes with new items.

Second-Hand and Major Fashion Brands in the U.S.: A Strengthening Bond

Some brands have been early adopters of resale. Isabel Marant launched Isabel Marant Vintage in June 2021. Gucci, through Gucci Vault, debuted second-hand and archive pieces online, including items like 1960s Bamboo handbags and 1999 printed silk dresses, which sold out quickly. Oscar de la Renta resells archival pieces via Encore By Oscar de la Renta. Kering, owning brands like Balenciaga and Alexander McQueen, has invested 5% in Vestiaire Collective, a leader in high-end resale.

Farfetch: A Resale Pioneer

Farfetch entered the second-hand segment in 2019 with its Second Life initiative in Europe, now operating in over 30 countries, including the U.S. In December 2021, Farfetch acquired Luxclusif, a B2B resale company specializing in buying and selling used luxury items. This acquisition supports Farfetch’s expansion into ready-to-wear and watches, while enhancing authentication and retail platform solutions.

“We envision the convergence of new and second-hand products as a turning point,” says Tom Berry, Global Director of Sustainable Business at Farfetch. “Digital passports for items could authenticate and build trust in the vintage market.”

Challenges for Circular Fashion in the U.S.

While second-hand fashion promises sustainability, challenges remain. Few third-party marketplaces are profitable, and scalability, efficient authentication processes, and consumer trust are critical. As more luxury brands launch in-house resale offerings, stores will need to reconfigure layouts, train staff, and improve reverse logistics.

Stephanie Crespin, founder of Reflaunt, notes, “There is no one-size-fits-all resale model.” Reflaunt provides modular services like home product pickup, authentication, pricing, and professional product presentation, helping brands like Balenciaga and Net-a-Porter streamline resale processes.

Fast fashion giant H&M has also entered re-commerce, allowing consumers to buy and sell items of any brand through its online platform.