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Home • (R)EVOLUTION  • Second-hand boom: “cost per wear” or a change of vision according to Vestiaire Collective

Second-hand boom: “cost per wear” or a change of vision according to Vestiaire Collective

With €3.5 million raised this year through a crowdfunding campaign, Vestiaire Collective is preparing to go public in 2025.

By 2024, the second-hand fashion market will be experiencing unprecedented growth, valued at 200 billion dollars and recording an annual increase of 15 to 20 per cent. Vestiaire Collective, one of the leaders in this sector, offers over 5 million rare and sought-after items, attracting a diverse and predominantly female customer base. With strategic partnerships with luxury brands such as Gucci and Chloé, the platform highlights the economic and ecological benefits of sustainable fashion. As the hidden costs of fast fashion are increasingly revealed, Vestiaire Collective is committed to a more responsible future, with an IPO planned for 2025 and continued expansion in the US market. Find out how this company is redefining the way we consume fashion in this exclusive interview with Pearls Magazine.

Dazzling growth of 15 to 20% a year

By 2024, the second-hand fashion market is estimated to be worth $200 billion and continuing to grow at an impressive rate of 15-20% per year. Now accounting for 6-7% of the global fashion market, this sector is becoming an essential alternative for budget-conscious and environmentally conscious consumers. Vestiaire Collective, with over 5 million items listed, offers a selection of rare and sought-after pieces, making second-hand fashion more accessible and attractive than ever.

A diverse audience

During our interview, Vestiaire Collective explained that its customer base is varied, but mainly made up of women, who represent 90 per cent of users. Although less numerous (10%), men are also active on the platform, in search of unique, quality pieces.

Luxury brands get in on the act

Since 2018, luxury brands have been increasingly investing in the second-hand market, but also in destocking and clothing rental. This trend can be explained by consumers’ attraction to more affordable and durable items, while at the same time offering the chance to discover collector’s items. « Vestiaire Collective has seized this opportunity by launching strategic partnerships with prestigious brands such as Gucci, Chloé and Burberry. These collaborations not only maintain the value of the products but also promote more sustainable fashion.‘”, emphasise the platform’s sources.

The hidden cost of fast fashion

Vestiaire Collective’s latest circularity report, entitled “The world can no longer afford fast fashion” published in April, highlights the ecological and financial impact of fast fashion. “Every week, 15 million items of clothing arrive in Ghana, 40 per cent of which end up discarded on beaches after one or two uses.”, says Vestiaire Collective. The report sets out the concept of “cost-per-wear”, demonstrating that second-hand items are often more profitable in the long term than fast-fashion items. On average, the cost-per-wear of second-hand items is 33% lower than that of fast-fashion garments, proving that more sustainable choices are also more economical.

Towards a stock market flotation in 2025

Vestiaire Collective launched a crowdfunding campaign in January 2024, raising €3.5 million from 3,500 investors, well above the initial target of €1 million. This fund-raising marks a key step towards the company’s planned IPO in 2025, while continuing to pursue its goal of achieving profitability by the end of 2024.

Gen Z at the heart of the Second Hand

According to the platform, ” Generation Z (or Gen Z) is massively embracing second-hand goods, not only for economic reasons but also for their ecological and unique appeal. In 2022, 31% of this generation bought second-hand products and 44% resold them. This behaviour is encouraging brands to invest more in this promising market.

“The US market represents 20% of our business”.

For the current year, Vestiaire Collective is focusing on the US market, which now accounts for 20% of its business. The company has doubled its transactions with American buyers in two years and tripled them with sellers. The addition of Rickie De Sole to the Board of Directors also underlines the platform’s commitment to sustainable fashion.

Vestiaire Collective also continues to fight against counterfeiting and fast fashion, actively supporting European regulations. Thanks to the Vestiaire Academy, more than 2.5 million items have been physically checked since 2019, ensuring the authenticity of the products for its users.

Vestiaire Collective is transforming the way fashion is consumed, promoting a more circular and sustainable approach. With innovative initiatives and strategic partnerships, the platform is establishing itself as a key player in the second-hand market, while preparing for its future on the international and stock market scenes.

Photos : Vestiaire Collective

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