Artificial Intelligence to Boost Secondhand Clothing Sales, Says ThredUp CEO

James Reinhart, the ThredUp CEO, says new AI tools help grow the market for used clothing. Global sales of these garments jumped by 15% last year. This rise is more than four times that of the overall fashion market.

Market Insights and Growth Potential

A GlobalData report for ThredUp shows sales now total $227 billion (£175 billion). This sum makes up 9% of all fashion sales. Sales have grown quickly over the last five years. They now give more space to resellers instead of major retail chains.

New AI search tools help buyers find items with ease. Analysts expect sales to climb 11% this year. The tools match outfits to well-known styles and give buyers low-cost choices. James Reinhart says that tough economic times push US shoppers toward used clothing. He said the market will move ahead when consumers see price rises on imported goods.

Growing Acceptance of Pre-Loved Fashion

More people now choose used clothing. One study found that 58% of buyers considered pre-owned items last year. Among younger shoppers, 68% looked for used options.

Several online resale sites assist in this change. Sites like Vinted, Depop, ThredUp, and eBay help buyers find what they need. This week, Vinted will open a high street shop in London. Influencers such as Susie Lau and Victoria Magrath guide the new collection. Big shops like Primark and Selfridges now add vintage sections to their stores. Vinted saw sales grow by 61% in 2023, reaching nearly €600 million (£513 million).

Challenges and Future Prospects

The market did not reach every target. Secondhand clothing still does not hit 10% of total fashion sales. Retailers like Shein and Temu bring buyers cheap choices that slow growth in used clothing. Changes in US and European rules may hit Chinese sellers. These rules could force extra taxes, which may help firms like ThredUp.

ThredUp saw sales grow by 1% to $260 million last year, though it lost $40 million from daily work. Reinhart said the company still made a profit in core operations. In the UK, Depop grew sales by 31% to £71.3 million in 2023 while cutting losses to £48.6 million. Vinted’s 61% sales jump shows that used clothing continues to gain a larger share in retail.

Tech changes meet new buyer views. The future for used clothing shines and promises more growth in fashion.