ThredUp Lodges Initial Public Offering Request
The secondhand apparel market, spearheaded by companies like ThredUp, is experiencing a significant surge in growth, with projections showing no signs of slowing down.
Currently, the second-hand luxury clothing market is valued at approximately $41.6 billion, and it's expected to grow at a compound annual growth rate (CAGR) of around 10% to reach around $66.1 billion by 2030. This segment represents roughly 15.1% of the global luxury clothing market and is growing at nearly double the rate of the overall luxury apparel market[1].
Broader still, the resale apparel market, encompassing all secondhand apparel, is projected to be worth about $77 billion by 2025. Platforms like Depop, Poshmark, and ThredUp are playing key roles in this growth[2].
ThredUp, one of the leading resale platforms, has made strides in the industry through partnerships with luxury resale players (e.g., Rebag) and the use of technologies like AI and blockchain to enhance customer experience and authenticity[4].
A critical growth driver for this market segment is Gen Z shoppers. They exhibit a strong preference for sustainability and affordability, favouring secondhand and resale as part of a broader commitment to eco-friendly consumption. Their demand for personalized and unique fashion items over mainstream luxury brands has helped propel the resale market's rise[4][2].
Millennials also contribute to this trend, but Gen Z's influence is particularly pronounced. In the United States, the secondhand apparel market share has been steadily increasing year-over-year and is forecasted to continue this trend through 2029, although specific percentage figures were not detailed in the provided data[3].
ThredUp claims environmental benefits of its platform, stating it has saved 1 billion pounds of carbon emissions and 4.4 billion gallons of water[5]. The company has filed an S-1 with the U.S. Securities and Exchange Commission for an initial public offering, with Goldman Sachs and Morgan Stanley as underwriters[6].
The average active buyer visits ThredUp's website around six times a month, and nearly half of consumers say that the global health crisis has made them more concerned about environmental issues, with 11% having shifted purchases based on environmental claims within the past year[7].
Consumers have become increasingly resistant towards fast fashion, and buying and wearing secondhand has largely lost its stigma. The resale segment is predicted to grow to become 17% of the overall apparel market share, second only to the off-price sector[8]. According to a company-issued report, the resale market is projected to reach $44 billion by 2029, with 52% of consumers expected to spend more on secondhand fashion[9].
In summary, the secondhand apparel market is rapidly expanding and reshaping fashion consumption, with Gen Z as a pivotal consumer group fueling this dynamic growth.
- The ongoing pandemic has made consumers more conscious about environmental issues, increasing the number of visits to secondhand apparel platforms like ThredUp by nearly half.
- The growth of the secondhand apparel market has significantly outpaced the overall luxury apparel market, with the resale market currently valued at about $77 billion and projected to reach $44 billion by 2029.
- ThredUp's partnerships with luxury resale players and implementation of technologies like AI and blockchain are contributing to its success in the secondhand apparel market, which is becoming increasingly lucrative in the realm of finance and business.
- The resale market's growing popularity, driven by Gen Z's preference for sustainability and unique fashion, is not only transforming the economy but also impacting the broader environment by reducing carbon emissions and water consumption.
- As secondhand apparel gains popularity in the fashion industry, technology plays a crucial role in shaping the market, with AI, blockchain, and various other technologies enhancing customer experience, authenticity, and overall market growth.
