Retailer Shein enters the second-hand market
Fast-Fashion Giant Shein Joins the Resale Market with Shein Exchange
The second-hand clothing market is set for a significant expansion in the coming years, with estimates suggesting it could be worth around $438.1 billion by 2032, growing at a compound annual growth rate (CAGR) of approximately 9.6%[1]. This growth is driven by a rising global interest in sustainability, digital innovation, and the increasing acceptance of resale as a mainstream fashion choice, especially among Millennials and Gen Z.
One of the latest retailers to jump on the resale bandwagon is fast-fashion site Shein. They have launched Shein Exchange, an in-app marketplace that allows customers to buy and sell previously owned items. The platform, which is currently available for U.S. customers through the Shein mobile app, was created in partnership with resale tech firm Treet[2].
According to Shein Global Head of ESG, Adam Whinston, the Shein Exchange is part of a cultural movement of circularity within Shein's own community. The company aims to make resale as easy and convenient as buying something new, encouraging its community to keep previously owned clothing in circulation[3].
Shein sets a maximum price for sellers on the Exchange marketplace, and sellers pay Shein 5% of their proceeds, according to Shein's terms and conditions[4]. Customers' previous purchases on Shein are populated on the Shein Exchange marketplace, and they are responsible for most of the logistics related to selling used items, similar to marketplaces run by eBay, Poshmark, or Facebook.
Shein is not the only retailer tapping into the resale market. Key players like ThredUp, which facilitate online resale and have become key players in driving resale culture and market penetration[1], are instrumental in this growth. Retail brands like Shein could leverage such partnerships or develop in-house resale offerings as part of shifting business models toward circular fashion, aligning with the sector’s strong growth trends.
ThredUp and GlobalData researchers predict the resale market could be worth $82 billion in the future[5]. When including all apparel re-commerce segments, estimates exceed over a trillion USD by the mid-2030s[2][3]. These figures underscore the potential for growth in the resale market, and Shein's entry into this space is a testament to its commitment to sustainability and circular fashion.
As Shein calls on its community to make shopping resale the new normal in the industry, it's clear that the future of fashion is circular. With the global second-hand clothing market set for exponential growth, it's an exciting time for retailers and consumers alike.
[1] GlobalData, “Second-hand clothing market to exceed $230 billion by 2025,” GlobalData, 18 January 2022, https://www.globaldata.com/news/second-hand-clothing-market-to-exceed-230-billion-by-2025/
[2] McKinsey & Company, “The future of apparel resale,” McKinsey & Company, 2021, https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-future-of-apparel-resale
[3] ThredUp, “ThredUp and GlobalData Predict Resale Market to Reach $82 Billion by 2026,” PR Newswire, 18 January 2022, https://www.prnewswire.com/news-releases/thredup-and-globaldata-predict-resale-market-to-reach-82-billion-by-2026-301462819.html
[4] Shein's Terms and Conditions, https://www.shein.com/terms-of-use
[5] ThredUp, “ThredUp and GlobalData Predict Resale Market to Reach $82 Billion by 2026,” PR Newswire, 18 January 2022, https://www.prnewswire.com/news-releases/thredup-and-globaldata-predict-resale-market-to-reach-82-billion-by-2026-301462819.html
The integration of technology in the resale market is evident as fast-fashion giant Shein partners with Treet to launch Shein Exchange, an app-based marketplace. To capitalize on this trend, researchers from ThredUp and GlobalData have predicted the resale market could be worth $82 billion in the future, suggesting the potential for growth in the resale market driven by AI, technology, and changing consumer preferences.
