AI Expected to Drive Growth in Secondhand Clothing Sales, Industry Leader Says

AI drives growth for used clothing sales. James Reinhart runs ThredUp. He heads one large online resale site. Global sales grew by 15% last year. This growth beats the wider market. Experts expect more gains with new tech.

Rising Popularity of Secondhand Market

Used clothing now adds up to $227 billion. This sum makes up 9% of all fashion sales. A recent GlobalData report shows these facts. In just five years, the market has grown fast. Traditional stores lose some of their share.

Reinhart sees good times ahead. He predicts an 11% rise in used clothing sales next year. AI search tools help buyers find what they want. These tools keep item and idea links close.

Reinhart said, "The market will lead soon. It will not face the same tariff pressures as other parts. When buyers feel less sure, they seek more value."

AI Technology Updates

AI now helps with outfit ideas and finding items by picture. Some tools let buyers set up a look. Others let them compare cheaper finds. New tech makes shopping for used clothes more fun than buying new.

A study found 58% of buyers chose used clothing last year. This was a 6-point jump from 2023. Young shoppers lead this change; 68% of them chose used items. Sites like Vinted, Depop, ThredUp, and eBay add to this shift.

Retail Changes and Collaborations

Used clothing grows as Vinted opens its first London pop-up this week. The pop-up shows collections from well-known fashion names like Susie Lau and Victoria Magrath. Stores such as Primark and Selfridges now add vintage sections.

Vinted grew 61% in sales last year. Sales reached nearly €600 million in 2023. Yet, Reinhart said used clothing growth did not meet all hopes. ThredUp aims for a 10% share in global fashion. Budget shops like Shein and Temu pull cost-minded buyers. This step fuels strong retail rivalry.

New Rules on the Way

Rule changes in the US and Europe may hit Chinese sellers hard. New limits may stop these sellers from shipping without taxes. These changes could help resale sites gain ground.

ThredUp saw a small rise of 1% to $260 million last year. The site lost $40 million in ongoing operations. Part of this loss came when it left its unprofitable European market. Reinhart stands firm. He claims used retail can work.

In contrast, the UK site Depop grew 31% in sales to £71.3 million in 2023. It also cut losses by over 25% to £48.6 million. The used clothing market will stay and shape the future of fashion retail.