What: Asia and Russia are opening to second-hand buying

Why is it important: by 2029, resale might become a bigger business than fast fashion.

According to analytics firm GlobalData, fashion resale is growing 21 times faster than sales of new clothes and will reach USD 36 billion by 2024. If trends continue, resale will be a bigger business than fast fashion by 2029 and it will include Asia for sure.

Aside from Japan and South Korea where vintage market is quite developed, the rest of Asia used to be reluctant to buy second-hand apparel. Until now. In China for instance, where pre-owned items account for just 3% of the luxury market, resale has struggled for cultural reasons (bad luck, hygiene). Newness was also a cherished characteristic among the newly affluent.

However, resale platforms have emerged around the world in recent years and are raising funds to fuel their expansion. Chinese luxury fashion resale platform Plum has brought in around USD 50 million in venture capital. Worth noting, a UBS survey of luxury consumers published last year found 72% of respondents had increased their purchases in the online resale market, up from 31% in 2018.

Indonesian fashion resale platform Tinkerlust, has around 180 000 monthly users and has introduced them to sustainability on its social networks by engaging influencers: an effective strategy in Southeast Asian markets where word of mouth is highly trusted.

In Singapore, The Fashion Pulpit, a store dedicated to fashion item exchanges has opened 3 years ago and is becoming profitable. Its founder’s ambition is for fashion lovers to think about swapping before buying something new. An annual fee equivalent to USD 450 will allow customers to benefit from unlimited exchanges.

A spokesperson for Vestiaire Collective, which has over 10 million members worldwide, said that while its core markets are currently Western Europe, USA, Australia, Hong Kong and Singapore, it’s strongly focused on growing its business in Southeast Asia, Malaysia and Eastern Europe.

While younger Asian customers are embracing second-hand as their values are evolving, local companies will still have to nurture a nascent market and tailor their offering to shoppers.

The Key to Asia’s Resale Market

Singapour, temple du consumérisme, se laisse tenter par les échanges de vêtements