AI and US Tariffs Drive Growth in Secondhand Fashion Sales
Synopsis
Global sales of secondhand fashion are experiencing remarkable growth, driven by advancements in artificial intelligence (AI) and increasing economic pressures such as US tariffs. With secondhand fashion now accounting for a staggering $227 billion…
Global sales of secondhand fashion are experiencing remarkable growth, driven by advancements in artificial intelligence (AI) and increasing economic pressures such as US tariffs. With secondhand fashion now accounting for a staggering $227 billion (£175 billion) or 9% of total apparel sales, industry leaders predict even greater expansion in the coming months.
AI-powered technology is reshaping how shoppers discover and purchase pre-loved clothing, enhancing the overall user experience. Meanwhile, financial constraints such as price hikes caused by rising tariffs continue to push more people towards secondhand options.
How AI is Innovating Secondhand Fashion Shopping
Artificial intelligence has been a game-changer for the secondhand fashion market. New AI-enabled tools simplify the process of finding specific items by allowing users to search in innovative ways, such as uploading a photo of a celebrity’s outfit to locate similar pre-loved looks.
James Reinhart, CEO of leading resale platform ThredUp, believes these technological advancements are key to improving customer experiences. He stated that tools using AI to suggest complete outfits or recommend affordable alternatives in a shopper’s cart "will really improve secondhand shopping experiences relative to shopping new".
By reducing friction and offering tailored options, AI is helping transform secondhand shopping into a seamless, enjoyable alternative to purchasing brand-new items.
Increasing Demand Amid Rising Costs
Economic pressures are another major factor fuelling the surge in secondhand fashion sales. With the US imposing tariffs on goods produced in China, new clothing prices are expected to climb. Cash-conscious shoppers are turning to preloved garments as a cost-effective solution.
Reinhart expects 2025 to be a breakout year for the secondhand market, as the pursuit of value increases with economic uncertainty. Data from a report compiled by analysts at GlobalData for ThredUp backs this up, revealing that more than half (58%) of shoppers purchased secondhand items last year, up from 52% the previous year.
The Role of Young Consumers in Driving Trends
The rise of secondhand fashion is being led by younger generations. According to the GlobalData report, 68% of young people bought preloved items in 2024—highlighting their role in normalising sustainable shopping habits.
Specialised platforms like Vinted, Depop, and ThredUp have become popular hubs for this demographic. These platforms make it easy for users to buy, sell, and discover unique pre-owned items, aligning with younger consumers’ values of sustainability and individuality.
Additionally, traditional retailers such as Primark and Selfridges are now introducing secondhand sections into their stores, further legitimising the resale trend and encouraging a broader audience to participate.
Competitive Pressures in the Resale Market
Despite its phenomenal growth, secondhand fashion faces challenges. Chain retailers like Shein and Temu continue to attract shoppers with ultra-low prices, making competition fierce.
Reinhart acknowledges that the industry initially underestimated the "penetration" of fast-fashion giants like Shein, which have drawn customers away from resale platforms. However, planned regulatory changes in the US and Europe—such as stricter de minimis rules requiring Chinese online sellers to pay import taxes—are expected to level the playing field for resale sites.
The Numbers Behind Resale Platforms
Success stories among resale platforms further illustrate the market's upward trajectory. For instance, Vinted recorded a 61% increase in sales in 2023, reaching nearly €600m (£513m) and posting its first profits. Similarly, Depop achieved 31% growth, narrowing its losses by 25% and demonstrating stronger financial sustainability.
While ThredUp has had a more modest 1% rise in sales to $260m, its underlying profitability showcases the resilience of secondhand platforms despite market challenges.
The Future of Secondhand Fashion
With AI innovation, economic shifts, and growing consumer demand combining forces, the future looks bright for secondhand fashion. Not only does it offer substantial cost savings, but it also supports sustainability by curbing textile waste.
As younger generations continue to drive demand, secondhand shopping is becoming a mainstream component of the fashion industry.
Source
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