Resale retail is not new and had a bit of a surge a few years ago. But it’s been redubbed recommerce and is surging anew.
In 2018, two years before the onset of COVID-19, fashion was the “star,” comprising 49% of the resale market. Home furnishings accounted for only 11%.
So while fashion introduced consumers to the benefits of recommerce, in 2020, the home category emerged as the fastest-growing resale segment. Zillow says secondhand furnishings and décor are making a big comeback, and Statista projects the furniture resale market will increase 70% from 2018 to 2025.
According to a report from Chairish, by 2027, recommerce revenues are expected to grow 127%, and from 2017-to 2024, the global resale market is expected to triple, reaching $130.6 billion.
Recommerce, like most retail these days, is powered by millennials and Gen Zers—31% of whom say the pandemic increased their interest in buying used, vintage, or antique furniture—particularly online.
Also driving resale retail, since the pandemic began:
- 60% of consumers are more opposed to wasting money
- 51% are more averse to environmental waste
- 50% care more about seeking value
- 33% of consumers care more about wearing sustainable apparel than they did pre-pandemic
The Chairish report is packed with helpful information for entrepreneurs who want to explore the recommerce market.
If you already own a retail store, Chain Store Age reported that the resale market is expected to grow 11 times faster than firsthand retail clothing sales over the next four years. And 43% of consumers are more likely to shop at a business that lets them trade in their old clothes for store credit, while 34% are more likely to shop at businesses that offer secondhand clothing alongside new merchandise.