Second-hand clothing, previously perceived as ‘cheap clothes’ and ‘used clothes’ sold on scales in places like China and Southeast Asia, is now gaining significant traction in the global market. This shift is highlighted by the entry of global clothing brands such as Zara and H&M into the second-hand clothing sector, opening specialized stores in various regions. The market for second-hand clothing is experiencing rapid growth not only in South Korea but also in the United States and Europe.
Major Korean retailers, including Lotte, Shinsegae, and Hyundai, are embracing this trend by establishing online malls that specialize in used clothing. Additionally, Korean fashion companies such as Kolon FnC are launching their own platforms for second-hand trading services.
Platforms dedicated to second-hand clothing, such as Lightning Market (Bungaejangter), have witnessed a significant increase in transaction value, exceeding $7730 (100 billion won) annually since 2019. “In the first half of this year alone, we surpassed $402 million (52 billion won), and we anticipate the cumulative transaction value for the year to exceed $773 million (1 trillion won),” an official from Lightning Market said.
Soldout, a personal trading platform operated by the domestic apparel company Musinsa, has recently expanded into the used clothing trade. In collaboration with LaundryGo, a laundry clothing company, Soldout now offers additional services for washing and managing used clothing, enhancing the ease of inspection and management while providing separate charges for these services.
According to thredUp’s annual report, the global used clothing market was valued at $177 billion (229.8 trillion won) last year and is projected to double to $350 billion by 2027. Although smaller in size compared to the overall apparel market, the growth rate of the used clothing sector is nine times faster. The U.S. used apparel market, making up 24 percent of the global market, is valued at $44 billion (57 trillion won) and is expected to grow to $71 billion (92 trillion won) by 2027. The domestic Korean used clothing market, estimated at around 5 trillion won, is also witnessing a 30 percent annual growth rate.
Market research firm Euromonitor has examined the factors fueling the growth of the second-hand clothing market from a consumer perspective.
A key driver is the increasing tendency of consumers, particularly amidst high prices, to reduce their spending. This trend is compounded by a faster turnover in clothing consumption cycles. However, the enduring quality of second-hand goods, coupled with their lower prices, is making them an increasingly appealing option. This appeal is most pronounced among young shoppers, with Generation Z leading the charge. The thredUp report indicates that 85 percent of Generation Z consumers in their 20s have bought second-hand clothing, with two out of every five items they purchase being second-hand.
