The second-hand fashion market is transforming the European retail landscape, with the UK second-hand market grown to in excess of £7bn with nearly 1 in 4 fashion transactions now resale. This accounts for approximately 10% of the fashion wallet online by 2029, according to the latest report from OC&C Strategy Consultants.
While UK apparel retailers are operating in a stagnant environment, where fashion purchase volumes in 2028 are expected to mirror 2019 levels, the second-hand market is experiencing rapid expansion. Nearly a quarter of volume transacted in the UK – just under 1 billion of 4 billion units – is now coming from second-hand retailers.
“Second-hand fashion is no longer a niche segment, it’s a fundamental shift in how consumers shop,” says Olivia May, Partner at OC&C Strategy Consultants.
“The market is being driven by three core motivations: affordability, sustainability, and the appeal of unique finds. These factors are reshaping consumer expectations and creating significant disruption across the retail sector.”
A market on the rise
The second-hand market is seeing rapid growth, with industry players beginning to diversify and secure a foothold in key niches – like luxury. ‘House of Vinted,’ launched on March 25th, 2025, is an initiative designed to bridge the gap between luxury and resale. The online fashion wardrobe features curated designer pieces from top fashion creators and pre-loved items from brands like Prada, reinforcing the growing momentum of second-hand fashion in the premium market.
The report highlights that multiple demographics are turning to second-hand shopping, with 30% of UK adults now purchasing second-hand. Millennials are leading the charge here, with over 50% participation in online resale platforms.
The appeal of bargain-hunting is clear: 40-50% of consumers surveyed citing price and value as their primary motivation, while 20-30% enjoy the treasure-hunting experience. Sustainability, while a key factor, remains a secondary motivation, influencing 10-20% of buyers.
The report shares that value brands like Primark, and Shein dominate resale platforms like Vinted in terms of listing volumes for womenswear. However, mid-market first-hand retailers face greater commercial vulnerability from the growth of second-hand sales, with M&S, Zara and Next emerging as the most frequently resold brands.
A combination of financial pressures, environmental consciousness, and a preference for distinctive fashion pieces has driven widespread uptake of resale platforms and pre-loved collections. “Retailers who fail to acknowledge this shift risk losing relevance,” Olivia warns. “The industry is already seeing leading household brands launching pre-loved initiatives, collaborating with resale platforms, and investing in authenticity and trust measures.”
Brands winning in second-hand with retail disruption
Collaborative initiatives between first-hand brands and resale platforms are growing, as businesses seek to maintain customer loyalty and drive engagement. “We are witnessing a seismic shift in consumer behaviour. The report underscores the growing need for authenticity and trust in the second-hand space, elements that first-hand (1H) retailers can leverage,” says Olivia.
Leading brands are already exploring partnerships, dedicated resale platforms, and in-store take-back schemes to secure their place in the pre-loved market.
H&M’s Pre-Loved program, for example, showcases how high-street retailers can embrace second-hand to sustain engagement and expand market share. The brand demonstrates the potential for 1H brands to integrate other partners such as Sellpy into their ecosystem to manage the second-hand marketplace.
Disruption caused by second-hand marketplaces is also seen in the technology industry Traditional retailers in the electronics industries are responding to the increasing significance of second-hand sales, either by developing in-house capabilities or forming partnerships, which the fashion industry can learn from. Brands like Apple and Dyson showcase a strong dual model where 1H and pre-loved/refurbished devices co-exist, providing consumers with further pricing options without damaging the brand or experience.
Apple follows a direct model, selling its refurbished products exclusively through its own website, allowing Apple to capture the full resale value, and maintain control over elements such as pricing. In contrast, Dyson follows a partnership model by selling refurbished products through third-party platforms like Refurbed. This strategy expands its reach to a broader audience, without requiring significant internal infrastructure.
“There’s a great deal fashion can learn from other industries like consumer electronics, where the penetration of consumers choosing second hand or refurbished models is high, but without devaluing either the most premium products or the equity of leading brands. Fashion can learn from the electronics industry by adopting strategic resale partnerships, maintaining brand value, whilst offering more accessible pricing options” says Olivia.
A path forward for first-hand retailers
The report from OC&C highlights three key strategies for 1H brands looking to remain competitive in the growing sub sector:
- Cementing first-hand relationships with core customers by reinforcing brand identity and product excellence.
- Developing in-house circular capabilities or partnering with existing resale platforms.
- Expanding revenue streams through services such as rentals, repairs, and resale-driven loyalty programs to offset volume decline in core apparel
“Resale is no longer just an alternative, it’s becoming an expectation,” says Olivia. “Retailers that integrate second-hand into their business models can build stronger customer loyalty, increase lifetime value, and capture a share of this booming market.”
Despite the challenges, OC&C’s report identifies substantial opportunities for traditional fashion retailers. Strategies such as take-back schemes, partnerships with established resale marketplaces, and integrating pre-loved offerings within existing product lines are proving successful in driving incremental revenue and customer retention.
“With the online second-hand market expected to double by 2029, 1H retailers that act now will be best positioned to capture market share and redefine their place in a shifting retail landscape.
Retailers need to recognise that second-hand fashion isn’t a competitor, it’s an expansion opportunity. By embracing circular models, brands can tap into new customer segments, enhance sustainability credentials, and future-proof their businesses,” Olivia concludes.
The full report on Second Hand Fashion can be found here – https://www.occstrategy.com/en/article/second-hand-fashion-how-first-hand-brands-can-compete-and-thrive/
