Consumers have a wide variety of options when it comes to what to wear.
Luxury and fast fashion have long been popular choices, but one area that’s become increasingly popular is the market for secondhand apparel.
In 2019, around 40 percent of Gen Z shoppers purchased secondhand apparel, footwear, or accessories. This is higher than all other age cohorts, and up significantly compared to prior years. Well known companies like Ebay, Etsy, and Poshmark (as well emerging companies Letgo) hope to benefit from this trend.
Potential Investment Implications
As the market for secondhand apparel and goods continues to gain attention, companies within that space are attacking the opportunity in different ways.
Some companies are focused on building out local marketplaces across many product categories, such as Letgo (acquired by OfferUp last year). Others are taking a more nuanced approach.
Earlier this month, investors saw Poshmark go public. The social marketplace boasts 70 million users and over $1 billion in annual gross merchandise volume, focusing primarily on fashion.
The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.