The rental and resale fashion market continues to chip away at traditional sales so what will the fashion supply chain of the future look like and are brands ready for it?
France, which is a leader in the world of fashion, has seen a shake-up in the way its consumers shop in recent years. In fact, a survey conducted by the French Fashion Institute (IFM) crowned secondhand fashion marketplace Vinted the country’s top clothing seller in the first quarter of 2025.
University of Delaware professor of fashion and apparel studies, Dr Sheng Lu, explains the clothing rental and resale market has enjoyed notable growth in recent years and could continue to expand due to several factors.
First, he says consumers’ growing awareness of sustainability drives increased demand for rental and resale options. For example, studies show that regularly shopping for secondhand clothing has become part of many Gen Z consumers’ behaviour.
Plus, he explains the rise of resale and rental clothing platforms, such as Vinted, have made it easier than ever for consumers to shop for secondhand clothing online as well as in-store.
Ellen MacArthur Foundation’s fashion programme manager Chloe Holland agrees, noting the success of start-ups such as Depop and Vestiaire Collective reaching unicorn status in recent years, which means they are valued at over $1bn.
She describes the growth of circular business models, such as rental and resale, in the fashion industry as “a clear signal of changing customer behaviour” with “more people buying resold items than ever before”.
Grey Matters Concepts’ VP of strategic global sourcing and development Bob Antoshak observes that rental and resale has “chipped away at traditional sales, especially in luxury, occasionwear, and trend-driven pieces”.
He believes this is because younger shoppers want value, variety, and sustainability and they’re finding these traits in resale and rental instead of buying new.
Lu says leading fashion brands and retailers have already started exploring resale and even rental platforms, while Holland namedrops sustainable fashion brand Patagonia for reporting $5m in annual revenue from its WornWear programme in 2023.
For traditional fashion brands and retailers Lu says the process requires careful planning and big investments: “For example, a successful clothing rental service relies on a sophisticated understanding of consumers’ demand and an efficient assortment management and logistics system to make it happen. It cannot be built overnight.”
Antoshak can see brands are rethinking materials and construction. He asserts that durability matters more now because if a product’s going to be resold or rented, it needs to last.
He continues: “Some are even designing collections specifically for circular use.”
But, Holland argues today’s fashion industry is still largely linear.
She explains: “While the circular economy holds a lot of potential, strong business leadership is now critical to scale these circular practices across the entire sector.”
Antoshak advises fashion brands and retailers to start with take-back programmes, launch a secondhand platform or partner with a resale company.
Crucially, he says: “And design smarter — think longer-lasting fabrics and timeless styles that hold value.”
Holland concurs, stating: “In addition to offering the industry significant potential in meeting climate and emission goals, there is a compelling business case for fashion brands and retailers to begin implementing circular business models.
“These include increased utilisation of existing products, decreased risks associated with sourcing new materials and products, and reduced exposure to raw material supply disruptions and price volatility in a rapidly shifting geopolitical context.”
Lu expects more consumers to express an interest in shopping for secondhand clothing or to consider clothing rental as retail prices increase due to the ongoing tariff war.
Antoshak remains optimistic that while tariffs will raise the cost of new clothes, resale will be able to fly under the radar, which will give its pricing an “edge”.
But Lu says caution is needed, adding the secondhand clothing market is not immune to the tariff war because “consumers may also keep clothing longer instead of disposing of it given the uncertain financial outlook”.
In other words, he explains: “With more consumers looking for secondhand clothing, stock could run low, and prices may rise.”
Upcoming sustainability legislation, such as the New York Fashion Act could indirectly promote the development of the fashion resale and rental business, suggests Sheng.
This act is one of many worldwide that is designed to push fashion companies to set science-based targets on emissions and water usage and develop a more circular business model.
This means fashion brands and retailers will be encouraged to design clothing with a longer life cycle, use more sustainable fibres that are suitable for reuse and will launch programmes to more systematically collect used clothing.
Antoshak concurs, summarising sustainability legislation as promoting “everything resale does well” from durability and transparency to waste reduction as cheap, disposable clothing is hard to recycle, rent or resell.
Instead of taking over the traditional clothing market, Sheng predicts we’ll see consumers having more shopping options with the continuous expansion of resale and rental businesses.
He continues: “We might also see more fashion companies open to incorporating resale or rental into their business model and treating it not only as a new source of revenue but also as another opportunity to engage with consumers, develop brand loyalty and promote their sustainability reputation.”
Antoshak points out basics will still sell new, but resale is quickly becoming a key part of the fashion ecosystem.
He states: “The shift looks long-term — this isn’t a fad, it’s a reset,” but at least initially, he can see bigger chunks of the luxury, special occasion, kids and maternity markets growing within the rental and resale space.
Antoshak can see many fashion brands and retailers shifting from selling products to offering services, such as repairs, resale and rentals.
He describes it as “treating garments as assets and not one-and-done purchases.”
“Consumers have begun to unlearn attitudes of the past. Overconsumption has become a bad name for some. Quality has taken on a new position for many consumers with resale providing access to better-made clothing.
“Sure, price will always be central to consumer decisions, but properly positioned, reused, quality garments can play a great role in the market,” shares Antoshak.
Meanwhile, Holland advises fashion companies to begin exploring which circular fashion models work best for their individual case “to maximise both the economic and environmental outcomes”.
She admits: “There is no one-size-fits-all model. However, while impactful, voluntary business-led action cannot be the only way to achieve a circular fashion industry. Policy and legislation will also be essential in growing circular business models” in future.
By Just Style