Are you buying pre-owned products or renting clothing?
The trend that is transforming Fashion and Retail in 2025
RETAIL TRENDS


One of the most influential trends in 2025 is the rise of the 'resale and rental' market (specifically resale of pre-owned products). This movement is transforming how consumers approach fashion and retail, driven by a combination of economic, environmental, and social factors. As we dive into this trend, we’ll explore the various aspects that contribute to its significance.
Economic Factors
The resale market for pre-owned apparel has seen tremendous growth, with companies like ‘The RealReal’ leading the charge. The luxury resale pioneer reported a 444% increase in stock value last year, reaching $10.93 per share. The company's lifetime sell-through rate is over 90%, indicating strong demand for pre-owned luxury items. The RealReal's third-quarter gross merchandise volume grew by 6%, while revenues increased by 11% to $148 million. These figures highlight the economic viability and profitability of the resale market, making it an attractive sector for investors and entrepreneurs alike.
Environmental Impact
Sustainability is a major driver behind the 'resale and rental' trend. Consumers are increasingly aware of the environmental impact of fast fashion and are turning to resale and rental options as a way to reduce waste. Rental platforms like ‘Nuuly' have capitalized on this trend, with sales up 53.9% to $265.9 million for the first nine months of last year. Nuuly's marketing campaigns emphasize the environmental benefits of renting over buying, resonating with eco-conscious consumers. By choosing to rent or buy pre-owned items, consumers can significantly reduce their carbon footprint and contribute to a more sustainable fashion industry.
In addition to reducing waste, the 'resale and rental' market also promotes the circular economy. Items that might have ended up in landfills are given a new life, extending their usefulness and reducing the demand for new production. This not only conserves resources but also encourages consumers to rethink their buying habits and consider the long-term impact of their purchases.
Social and Cultural Shifts
Millennials and Gen Z are at the forefront of the 'resale and rental' movement. These generations value flexibility, affordability, and sustainability, making 'resale and rental' options particularly appealing. Over two-thirds of Nuuly's new subscribers report that they have never rented clothing before, indicating a significant shift in consumer behavior. As these generations continue to prioritize experiences over ownership, the demand for 'resale and rental' platforms is expected to grow.
Moreover, the social stigma associated with buying pre-owned or renting clothing has diminished significantly. Consumers now view these options as savvy and responsible choices, aligning with their values and lifestyle preferences. This cultural shift has paved the way for the success of platforms like ‘Poshmark’ and ‘Rent the Runway’, which cater to fashion-forward individuals looking for unique and affordable options.
Conclusion
The 'resale and rental' trend represents a significant change in the retail industry. As consumers become more environmentally conscious and seek greater flexibility in their shopping habits, resale and rental platforms are poised to continue their growth trajectory. Retailers that embrace this trend and invest in the necessary marketing strategies will be well-positioned to thrive in 2025 and beyond.