Secondhand fashion sales surge due to tariffs, AI tools

Sales of secondhand clothing are expected to increase significantly in the coming years. This growth is being driven by advancements in artificial intelligence, which help shoppers find what they want more easily. Last year, global sales of pre-loved fashion rose by 15%, which is much faster than the overall market. According to a report from GlobalData, secondhand clothing now accounts for $227 billion, or 9%, of total fashion sales. This shift has allowed resale sites to compete effectively against major clothing retailers. Sales are anticipated to grow by an additional 11% this year, aided by new AI tools that enhance the shopping experience. Many American consumers are turning to secondhand items due to rising prices from tariffs on goods made in China. James Reinhart, CEO of the resale site ThredUp, noted that economic uncertainty makes shoppers more likely to seek value, which benefits the resale market. The study showed a growing acceptance of secondhand shopping. Last year, 58% of shoppers were willing to buy pre-loved items, an increase from the previous year. Young people are leading this change, with 68% of them buying secondhand clothing. Specialist sites like Vinted, Depop, and eBay are gaining popularity. Vinted recently reported a 61% sales increase, reaching nearly €600 million, marking its first profitable year. Meanwhile, ThredUp and competitor Depop also saw growth, although ThredUp's results were below expectations. Industry experts believe that changes to import tax rules in the US and Europe could limit the reach of low-cost online retailers like Shein and Temu, giving resale sites a boost. However, the secondhand market has not yet achieved its goal of accounting for 10% of global fashion sales. Despite facing challenges, ThredUp is optimistic about being profitable in the long term, highlighting a new narrative around the resale market's potential to thrive.