Resale as a Revenue Engine: Unlocking Value and Sustainability in Fashion

Tariff-driven momentum:

In early 2025, U.S. apparel tariffs spiked—up to 145% on certain imports—triggering an average 18% surge in downloads of thrifting apps like Depop (+68%), Poshmark (+28%) and eBay (+15%) in Q1. According to Yale University’s Budget Lab, tariffs boosted clothing prices by an estimated 65%, making secondhand options increasingly attractive. Lei Takanashi of BoF confirms resale platforms are seeing the biggest influx of new buyers in their history, with ThredUp reporting a whopping 95% increase in Q1 new-user growth and revenue rising 10% year-over-year to $71.3 million. Clearly, economic pressure has accelerated demand for affordable, sustainable fashion.

Brick‑and‑Mortar’s Resurgence & Omnichannel:

Physical resale shops in the U.S. have grown by 7% in two years, driven by Gen‑Z’s affinity for in‑store curation and experience. Mark Boutilier, a New York thrift enthusiast, notes that local stores often surprise customers with luxury-grade finds, reinforcing the importance of tangible browsing The Business of Fashion. Meanwhile ThredUp’s 2025 report shows the U.S. secondhand apparel market grew 14% in 2024—five times faster than the broader clothing sector—and is projected to reach $74 billion by 2029. This aligns with McKinsey’s finding that resale now represents roughly 9–10% of global apparel sales.

Impact & Opportunity for Brands:

Resale isn’t just consumer-driven—it’s smart business. Data reveals 94% of retail executives believe their customers already engage in resale—up 4 points from 2023—and 32% of resale shoppers bought directly from brands in 2024. Moreover, 44% of executives now aim to reduce reliance on imports, with 54% recognizing resale as a more reliable supply amid trade uncertainty. ThredUp CEO James Reinhart notes, “As consumers think secondhand first, resale is seeing accelerated growth” and brands are increasingly using trade-ins and social media. The message is clear: integrating resale can unlock new revenue, enhance brand loyalty, and buffer against tariffs and supply chain shocks.

Why Circular Logistics Matter:

Consumers are shifting behaviours under economic and environmental pressures—but brands need infrastructure to respond effectively. A decentralized, regional reverse-logistics model enables faster restocking, localized resale or rental, reduced emissions, and cost savings. With inventory already in circulation, tariffs are sidestepped, supply chains shorten, and environmental impact shrinks. As the resale market advances professionally—with both online and offline layers—the strategic opportunity for fashion brands lies in streamlining returns and reuse. That’s where CIRQUEL’s circular orchestration and technology plays a pivotal role: helping brands reclaim value from unsold and returned garments while bolstering sustainability and profitability.