2018 Resale Report - thredUP
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2018 Resale Report
Foreword
I often get asked if resale as a category has hit the mainstream. But innovation can be messy. And that’s where I think we are in the
People want to know if it's had its breakout moment yet. Has it innovation cycle. Sometimes the clothes don’t fit, sometimes the
“arrived”? The answer is...sort of. Let me explain. quality doesn’t match the price, sometimes customer service is
uneven, or shipping times mess with the best-laid plan. Remember,
The truth is more people are shopping secondhand than ever before. behind all of these major forces in apparel are complex and
In fact, one in three women shopped secondhand last year. Not just sophisticated platforms only starting to mature. As William Gibson,
at thredUP or in apparel, but across all categories, consumers are the famous science fiction writer once remarked, “The future is here,
shopping smarter and thinking secondhand first. And the number it’s just not evenly distributed." The apparel evolution taking place is
of people who are trying secondhand for the first time is rapidly less than eight years old. We’re all trying to supplant a tradition that
increasing. 70% of new customers who shopped on thredUP were Marshall Field pioneered a hundred years ago!
first-time resale shoppers. 70%!
There is a powerful transformation of the modern closet happening
and I’m proud that resale is a key driver of this transformation. If you
haven’t seen it firsthand, ask a group of friends to compare their
There is a powerful transformation closet of ten years ago to their closet today. We did a comparison in
of the modern closet happening and this year’s report and boy it makes for an interesting conversation...
resale is a key driver. Thank you for picking up a copy of our 6th Annual Resale Report.
We’re excited to share it with you!
Resale as a category isn’t alone. The modern consumer now has a
choice between shopping traditional retail or trying new, innovative
business models. New apparel experiences and brands are emerging
at record rates to replace old ones. Rental, subscription, resale,
direct-to-consumer, and more. The closet of the future is going to look
very different from the closet of today. When you get that perfectly
curated assortment from Stitch Fix, or subscribe to Rent the
– JAMES REINHART
Runway’s everyday service, or find that killer handbag on thredUP
you never could have afforded new, you start realizing how much Co-Founder & CEO
your preferences and behavior is changing.
THE NEW NORMAL
Resale Market Will Reach $41B by 2022
Apparel Takes Biggest Resale Disruptors
Slice of Resale Pie Drive Category Growth *
20% +49%
Media & Resale is growing
24x
Electronics
$20B
49%
Apparel faster than retail
13%
(Clothes, Shoes,
Books
& Accessories)
Current size of resale
+9% +7%
apparel market
+2%
11%
Homewares Resale Traditional Off-Price All Apparel
& Furniture Disruptors Resale Retail Retail
8%
*2017-2018 Growth Rates
Other
Leading Resale Disruptors
• All brand tiers • Luxury brands only • All brand tiers
• Managed marketplace • Managed marketplace • Peer-to-peer marketplace
• $130M in funding • $173M in funding • $153M in funding
Additional Players:
47M
BYE BYE STIGMA
Thrift is Going Mainstream
1 in 3 44M
women
WO M E N S H O P P E D
*
S E CO N D H A N D I N
2 0 1 7 CO M PA R E D TO
35M
SHOPPED SECONDHAND
LAST YEAR
*18 years of age and older
IN 2016
Resale is Capturing Market Share thredUP Converts Skeptics
2% annual $400B
growth
$360B
70%
of thredUP
customers had
Retail Apparel never thrifted
before
Resale Apparel
15% annual
growth
$41B
$20B
2017 2022
IT’S NOT A FAD
Thrift Quickly Becomes a Lifestyle
Used Replaces New in Thrifters’ Closets
2012 2017 2022
Thrifters
plan to buy
11% 24% 40% 2x
the amount of
used clothing in
the next 5 years
Percentage of items in thrifters’ closets that were purchased used
3 Surprising Facts You Didn’t Know About Thrifters
Recessions spark
66% 13%
thrift activity.
A surge in first-time
of consumers use thrift to buy thrifters started in
of the most active*
better brands
they would otherwise
never pay full price for
2008 thrifters are
millionaires
* “Most active” include those who spent $10K or more on thredUP over 2 years or more.
WHO THRIFTS THE MOST & WHY
Millennial Shopping Habits: It's Complicated
They are wasteful… …but hate to waste
T H R I F T I N G S O LV E S T H E
77%
18-24 year olds MILLENNIAL DILEMMA
are the group most
likely to discard
an item after of millennials
1-5
prefer to buy from
environmentally-
conscious brands
wears
They are the most They are most likely to
49% impulsive shoppers switch to thrift because of
environmental reasons
46%
43% 35%
41%
35%
40%
of 18-24 year olds
27%
18-24 25-34 35-44 45-64 65+ shopped resale last year.
Percentage of purchases that That’s more than any
are impulse buys other age group under 45
Millennials Average
RETAIL IS CHANGING, NOT DYING
Meet the Closet of the Future
PA S T ( 2 0 0 7 ) PRESENT (2017) FUTURE (2027)
Resale
thredUP, eBay,
Plato’s Closet, etc.
Resale 3% Retail disruptors
Resale 6% will own nearly
Subscription & Rental Resale 11%
1/3
Rent the Runway,
Stitch Fix, etc. Off-Price 10% Direct-to- Sub. & Rental 2%
Consumer 7%
Amazon 4%
Amazon Fast Fashion 7%
Direct-to- of closets by offering
Amazon Fashion, etc.
Off-Price 15% fun experiences
Consumer 11%
Direct-to-Consumer and low prices
Everlane, ASOS, etc.
Mid-Priced Fast Fashion 9%
Specialty 26% Off-Price 18%
Off-Price Resale will be
larger
T.J. Maxx, Ross, etc.
Mid-Priced
Fast Fashion Specialty 20% Fast Fashion 10%
Zara, Forever21, etc. Value Chains 11%
than fast fashion as
Mid-Priced Specialty Mid-Priced consumers re-think
Gap, Ann Taylor, etc. Specialty 14% eco-impact of apparel
Value Chains 11%
Value Chains Department
Walmart, Target, etc Stores 23%
Value Chains 10% Resale is growing
Department
Department Stores
Macy’s, Bloomingdales, etc.
Stores 14%
Department
Stores 10% 9x
faster than
Other Retailers Other Retailers Other Retailers
17% 15% Other Retailers legacy retailers
Costco, QVC, etc.
10%
Percentages based on actual and projected market share
THE SHIFT TO THRIFT
Deeper Discounts Attract Bargain Hunters
The Same Thrill, But Better Deals:
Shoppers spend less on resale,
but get more overall retail value.
$135B
I N VA LU E * *
$123B
I N VA LU E * *
50%
of thredUP customers
shifted spend from $74B
off-price to thrift SPENT*
$41B
SPENT*
Treasure hunters
rejoice!
Resale Off-Price
*Amount spent based on estimated consumer purchases in 2022.
**Value assumes resale apparel sells at a 70% discount to retail
price and off-price apparel sells at a 40% discount to retail price.
VARIETY RULES
Endless New Arrivals & Brands Win Customers
Number of unique T H R E D U P S E L LS
apparel items
stocked (SKUs) 9.9M 8.2K
items
1.7M 4 T. J. M AX X STO R ES
WO RT H O F I T E M S
items items EAC H DAY
10K 359 35K
Number of T H R E D U P CA R R I ES
individual
3 X M O R E B RA N D S
brands stocked brands brands brands T H A N A M AZO N
Thrill of the Hunt
Added
62%
1hr ago
of consumers
switched to thrift
1,000
new arrivals added to
because of
constant new thredUP each hour
arrivals
IN THE NEXT 5 YEARS?
WALLET SHARE SHAKE-UP
Where Consumers Plan to Shift Spend
Where will you spend more or
less in the next 5 years? *
Less More
Resale
thredUP, eBay, Plato’s Closet, etc.
11% 71%
71%
of consumers plan
Subscription and Rental 18% 32% to spend more on
Rent the Runway, Stitch Fix, etc.
resale shopping
Direct-to-Consumer 16% 38%
Everlane, ASOS, etc.
Amazon 12% 43%
Amazon Fashion, etc.
Value Chain 49% 20%
Walmart, Target, etc.
Off-Price 29% 28%
T.J. Maxx, Ross, etc.
Mall Brands
Gap, Ann Taylor, etc.
38% 25%
71%
of consumers plan
Department Stores 71% to spend less in
3%
Macy’s, Bloomingdales, etc. department stores
*Responses represent buying intentions of those who shopped each retail category.THE HYPER-CONSUMPTION ANTIDOTE
Thrift Offsets Rampant Throw-Away Culture
The Consumption Problem The Secondhand Solution
OVER ⅓ OF In case you missed it, fashion is the
WOMEN WEAR AN ITEM second-most polluting industry in the
≤5
times before
world, surpassed only by petroleum.
Picking up and disposing of
getting rid of it brand-new clothes all the time drives
BUYING A USED
demand for nonstop manufacturing,
GARMENT EXTENDS ITS
which contributes to the fashion
43%
L I F E O N AV E R A G E B Y
2.2
industry’s incredible waste.
When you buy something old
years
of all purchases
are “impulse buys” and previously-loved, you’re
extending its lifespan and WHICH REDUCES
reducing its carbon footprint. C A R B O N , WA S T E , A N D
70%
WAT E R F O OT P R I N T S B Y
73%
– E M I LY FA R R A , editor
of the average
woman’s closet
goes unwornA GLOBAL GROUNDSWELL
The Eco-Impact If Everyone Shopped Thrift
I T E M S U P C YC L E D O N T H R E D U P
If everyone bought used instead of
new for just one year we’d save:
2017
17M
S AV I N G S E Q U I VA L E N T
Past 5 years
165B LBS All the cars in
52M
OF C02 Los Angeles taken off
the road for 4 years
The annual power
350B KWH OF
That’s enough consumption of
ELECTRICITY 32M homes
items to cover the
state of California!
1 3 T G A L LO N S Water for all of
O F WAT E R California for 14 years
Slowing Down Fast Fashion
thredUP offers the thrill of
LAST YEAR,
new arrivals, without the
environmental cost T H R E D U P R E C YC L E D
340K
FA S T FA S H I O N I T E M SCIRCULAR AND SUSTAINABLE FASHION
Retailers and Resellers Unite for a Cause
Reuse or
If every garment was recycle
Keep products
and materials
Going green
everything
given a second life… in use means greener profits
75%
We would W H AT I S
reduce waste and CIRCULAR
emissions by FA S H I O N ?
73%
of consumers are
more likely to buy from
eco-friendly brands
Source sustainable
fabrics and materials
Circular Fashion Pioneers
REPURPOSED MATERIAL REWARDS FOR RECYCLING TRADE IN & BUY USED
“We start by designing our closet “We believe that the future of fashion “Our Worn Wear program
to last so they’ll stay in your is circular – it will be restorative and celebrates the stories we wear,
closet longer. When you’re done, regenerative by design and the clothes and keeps your gear in action
we take them back.” we love never end up as waste.” longer through repair and reuse.”
– Eileen Fisher – Stella McCartney – PatagoniaFINANCIALLY FIT WITH THRIFT
The Smart Switch that Can Make You Rich
Dresses you can buy for $100
BUYING USED INSTEAD
$$$$ OF NEW FOR ONE
THREDUP Y E A R S AV E S YO U
5.5
$2,420
$18 each
*
TA R G E T 3.3
$30 each Which gets you…
N O R D ST R O M
RAC K 1.5 OR OR
$67 each
A massage One trip to A cappuccino
twice a month Hawaii every day
AS O S
1.6
$60 each
N E T-A- P O RT E R 0.2
$1.1B $160B
The amount thredUP The amount we would all
$440 each customers have saved in collectively save if we
the past five years bought used instead of
shopping secondhand new for one year
*Annual savings if you buy used clothing, electronics, and furniture.SHOP SMARTER
Brands with the Best Return-On-Investment
HIGH EARNING
Brand Investments
BEST
Giorgio Armani Gucci
Badgley Mischka
Max Mara Burberry Frye
Rebecca Taylor Helmut Lang
Nicole Miller Rebecca Minkoff
Lululemon
DVF Rag + Bone
Club Monaco BCBGMAXAZRIA
LO W D E M A N D
Alice + Olivia
HIGH DEMAND
Juicy Couture Vince
BEBE
J. Crew
Puma Urban Outfitters Keds
Mango Under Armour
Abercrombie WORST
J. Crew Factory Modcloth
Uniqlo
CJ Banks American Apparel Crocs Lularoe
Missguided Who What Wear
Charlotte Russe
H&M
Target
LO W E A R N I N G
Chart includes brands that rank above or below average for which thredUP has significant volume.INSIDE AMERICA’S CLOSETS
The Top Brands When Compared Across States
Nordstrom
L.L. Bean
Gap
Patagonia Maurices Maurices
Columbia J. Crew
Maurices Apt 9 Rag + Bone
Maurices Vineyard Vines
Maurices Lole
Lord & Taylor
Eddie Aerie
Maurices Bauer Vera Bradley
Bebe Vera Bradley
James Lululemon Under Armour
Maurices JCPenny
Perse Patagonia
Madewell
CJ Banks Lularoe Garanimals
Quicksilver C & C California Hanna Andersson
Dillards Brands
Torrid Cato Cato
Cato Lilly Pulitzer
New Directions +
Kim Rogers
Cato
J. Crew Coach
Dillards Brands
These are the brands that are more likely to be supplied to thredUP by state.Definitions & Sources DEFINITIONS The Resale market includes sales of all used products, both online and offline. It includes sales at traditional thrift stores, established auction sites such as eBay, and other online marketplaces. The price, quality and selection of products vary widely. Resale Disruptors represent a specific segment of the apparel resale market. Resale disruptors focus on higher-quality, gently-used, brand-name products and present a more curated product assortment. Resale disruptors sell their products via peer-to-peer marketplaces, augmented marketplaces and retail stores. S O U R C ES * GlobalData market sizing and growth estimates (2018) Estimated using private and public company data, consumer surveys, retailer tracking, store observations and other secondary sources. * GlobalData consumer survey (2018) A consumer survey of 2,000 women, conducted in February 2018. The survey asked a number of questions about shopping behavior and attitudes. The sample was designed to be representative of age, income and geographical distributions in the U.S. * thredUP brand health survey (2018) A survey of thredUP users, conducted quarterly. The survey asks a number of questions about thredUP brand awareness, shopping behavior and attitudes. * Crunchbase * thredUP shopper trends * EDITED retail analytics * Water and Resources Action Programme (WRAP) Report (2012) * U.S. Geological Survey * U.S. Census Bureau * U.S. Environmental Protection Agency * Los Angeles County Shared Mobility Action Plan (2018) * Handbook of Life Cycle Assessment of Textiles and Clothing (2015) * Well dressed? The present and future sustainability of clothing and textiles in the United Kingdom (2016) thredUP is an independent reseller of like-new clothing and accessories and is not affiliated with or endorsed by any designer, manufacturer, retailer or brand. All third party brand names and logos used herein are trademarks and/or registered trademarks of their respective holders.
media@thredUP.com
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