We believe the Covid-19 pandemic will have a lasting impact on consumer habits, specifically how consumers view their relationship with apparel and luxury. As they rethink their impact on the environment, we could see a rapid adoption of resale. If consumer habits do not change, the fashion industry will use up a quarter of the world’s carbon budget by 20501.
We therefore believe resale is in the early stages of a long-term secular growth trend which will have significant positive impacts on the sustainability of fashion and luxury at the industry and company level.
We expect that the resale market will continue to grow as consumer spending shifts and resale becomes a key focus for apparel and luxury companies. The firms that embrace this trend should deliver stronger future growth, as well as leave a smaller environmental footprint, leading to continued improvements in the circular economy.
Leigh Todd, senior portfolio manager, Brian Blongastainer, senior research analyst, and Katherine Kelly, research analyst, Mellon
1Ellen Macarthur Foundation. A new textiles economy: Redesigning fashion’s future.