Luxury Resale Is Re-pricing the $289 Billion Fashion Market

A Vintage Galliano Gown and the Rise of a $289 Billion Resale Market

Nearly three decades after John Galliano showed his spring-summer 1997 Circus collection in Paris, Zendaya wore a piece from that archive at the London premiere of Spider-Man: Brand New Day, turning a vintage gown into a fresh fashion moment. The dress, secured by a web-like back, is one example of a broader shift: some of the most desirable luxury clothing was designed years ago.

That shift has financial scale. ThredUp estimates the secondhand clothing market will reach $289 billion this year, more than double the $141 billion recorded five years earlier. The article argues that even combining the 2026 revenues of the largest luxury groups — LVMH, Richemont, Hermès and Kering — with sales at Zara, Uniqlo and H&M would not approach that secondary-market figure.

This market behaves less like a controlled luxury boutique and more like an open exchange. Buyers and platforms continually discover what an item is worth, and that secondary price feeds back into how consumers think about buying new. According to ThredUp, 60% of customers now say resale value is a critical factor when they buy clothes; Vestiaire Collective estimates 85% of its transactions replace a purchase that would otherwise have happened in the primary market.

What the Oscar de la Renta–Toteme Price Gap Reveals

Oscar de la Renta vs Toteme: Two Very Different Resale Signals

TheRealReal data cited in the article shows an Oscar de la Renta coat typically sells for about 14% of its recommended retail price, while pieces from Toteme sell at around 45% and attract more demand. On the primary market, Oscar de la Renta looks more expensive and more elevated; on the secondary market, that impression reverses. The reason is partly supply: Oscar de la Renta has a 60-year archive and specializes in well-kept occasion dresses, while Toteme is a young 2014 brand with a smaller range of instantly recognizable silhouettes. More supply and a broader design language make pricing less exclusive secondhand, not just at the boutique.

Resale as a Continuous Price Referendum

The secondary market functions as an ongoing auction where thousands of potential buyers reveal what they are willing to pay. Unlike primary prices, which brands set, resale prices are not controlled by platforms or labels; they emerge from demand after the initial excitement passes. Vestiaire Collective's style director, Gaya Guiragossian, frames it as value determined over time: what remains desirable after the hype wave is gone.

Fashion Starts to Trade Like a Depreciating Asset

The article's car analogy is useful. New cars lose value quickly and buyers account for that; increasingly, clothing above a certain price point is being judged the same way. If 60% of shoppers factor resale value into a new purchase, luxury labels face a new kind of price competition — not just from rival brands, but from their own past seasons and from platforms that make those past seasons easily searchable.

What Buyers and Brand Managers Can Do With Resale Price Signals

• Before paying full retail, check the piece's typical resale level. TheRealReal's data shows a roughly 45% residual for Toteme versus about 14% for an Oscar de la Renta coat — a wide gap that changes the true cost of ownership if you resell.
• For occasion pieces with broad historical supply, such as Oscar de la Renta's special-event dresses, start secondhand: Vestiaire Collective estimates 85% of its sales replace a primary-market purchase, and platforms favor barely worn or unworn items.
• If you run a fashion brand, treat the resale-to-retail ratio as a demand signal. Toteme's smaller, recognizable, seasonless range sustains a stronger secondary price than a large archive, so product breadth and recognizability should be part of assortment decisions.
• Luxury and contemporary labels should not ignore the 60% of ThredUp-surveyed customers who say resale value is critical; structuring distribution, storytelling and limited recognizable styles can protect secondary pricing.