Used and recycled

According to ThredUp and retail analytical firm Global Data, the secondhand market is on track to more than double over the next five years, from 24B to 51B.

Powered by the avalanche of Generation Z and millennials, resale platforms like Poshmark or The RealReal carry millions of users, trying to look for the used new, even well-established retailers are realizing, the new new, is the used and recycled.

Companies, like Foot Locker or Neiman Marcus, are investing hundreds of millions of dollars trying to ride this new trend, FL investing in the shoe reseller GOAT and NM investing in the luxury retailer Fashionphile.

This trend will keep on growing through the years if we take in account the tendency of economics and social consciousness.

Economic trends don’t look strong, and the combination between higher cost of education and housing put a tremendous toll on the new generations. Combined with the fact that half of millennials will never earn more than their parents did, the trend of buying used looks like an easy decision.

Long live the secondhand market.

With each generation that passes, the accumulated knowledge and awareness grows. People now know the huge impact of making, buying and discarding a product. The Conscious Capitalist gains momentum each day and with that, a big space in the retailers target audience.

It will be really fun to watch how retailers adapt to this trend. Maybe evolving their traditional business to a rent or share one.