There are four main challenges the fashion resale market will need to overcome in 2025, however there are also new opportunities for the sector to explore.

A tense macroeconomic climate and environmental concerns will continue to drive growth in the global fashion resale market in 2025, according to a GlobalData report titled ‘Global Apparel Resale Market to 2028’, however there are some challenges that will need to be tackled to ensure it reaches its full potential.

What are the main opportunities for the global fashion resale market in 2025?

Cost savings

Buying secondhand can offer significant savings compared to purchasing new, making it particularly attractive in times of economic uncertainty, and to younger consumers with less discretionary income. As consumers also look to earn money by selling their own items, they in turn are spending more time on these platforms and will be reinvesting some of the money from their sales back into the platform.

Environmental concerns

Growing awareness of the fashion industry’s impact on the planet has prompted consumers to turn to more environmentally friendly consumer choices, mainly resale. Gen Z and millennials are a particular driving force behind this shift, as they are the most environmentally engaged and are more likely to align their purchasing decisions with their values.

Technological advancements

The rise of online resale platforms such as Depop and Vinted has made buying and selling secondhand fashion much more convenient. Evolving technological advancements are also enabling these online players to strengthen their shopping experiences, by making their interfaces much sleeker and incorporating AI-powered tools to enhance navigation, to become astute to emerging trends and to offer more accurate product and pricing recommendations.

Desire for vintage and unique finds

Consumers are increasingly drawn to unique or limited-edition pieces which frequently end up on resale platforms. This is particularly true among Gen Z and Gen Alpha, who have a stronger desire to express their individuality through their style.

What could hold the fashion resale market back?

Susceptibility to economic challenges

While economic challenges have diverted some people towards resale, as they look for a cheaper way to buy fashion, the market has still been impacted by a slowdown in total apparel spend. This will continue in the short term, especially in Europe and North America which have been the hardest hit by inflation. As well as prioritising other sectors like health and beauty, consumers are also opting for capsule wardrobes with less pieces.

Competition from ultra-fast fashion

Though the resale market often offers superior affordability, it faces tough competition from ultra-fast fashion brands like Shein and Temu, which are growing rapidly as they offer readily available fashion at ultra-low prices. The resale market will struggle to compete with these brands’ agile response to emerging trends, as the resale market predominantly sells fashion from past seasons, making it less aligned with the latest trends.

Overinflated prices

The resale market has long had a problem with overinflated pricing, with sellers listing viral and sold-out items for more than the original retail price. For example, Adidas Originals and UGG boots have faced this in 2024. These higher prices will deter some consumers from purchasing, instead choosing to hold on and see if availability in the retail market improves. Brands may also start to increase their inventory levels to fight off the competition from resale.

Inconsistent customer experiences

Navigating the huge ranges that resale platforms have remains a common grievance across online and offline resale. Indeed, item quality is not guaranteed, with buyers reliant on images and descriptions provided by sellers being accurate. Buyers are also at risk from scams especially for designer items, as not all platforms offer authentication services. Buyers can also encounter variable sellers, who may not fulfil the order, ship it in a timely manner, or with any care.

By Just Style