US MZ Generation Emerges as Leading Consumers in the Secondhand Clothing Market
Mobile App Downloads Rise for the First Time in Three Years
U.S. thrift stores selling used clothing, shoes, and accessories are drawing attention due to the tariff war triggered by President Donald Trump.
On April 22 (local time), the Associated Press (AP) reported that U.S. tariffs have had a disproportionate impact on product prices.
According to the report, last week the Yale University Budget Research Institute estimated that the recent short-term consumer price increase rate for apparel could reach 65%, while for leather goods it could reach 87%.
The AP stated, "These price hikes have become a factor prompting consumers to turn to online secondhand clothing (fashion) sites and consignment boutiques." However, the outlook for the secondhand clothing market remains uncertain. It is unclear whether the tariff war initiated by Trump will persist long enough to pressure consumers into changing their behavior. Additionally, suppliers of secondhand clothing may raise prices in response to overall market conditions and consumer demand.
Jan Genovese, a retired apparel company executive, told the AP, "Tariffs certainly make people reconsider their purchases, but they may also encourage them to look for alternative purchasing channels." Consulting firm McKinsey & Co. noted that, after the COVID-19 pandemic, consumers have shown a tendency to spend more frugally or with environmental considerations in mind, predicting that "the secondhand apparel market will grow 11 times faster than retail apparel sales through this year."
The AP reported that the U.S. secondhand clothing market had already been thriving even before the specter of tariffs swept through the American apparel industry. According to global market research firm Sensor Tower, Generation MZ is expanding as the leading consumer group in the secondhand clothing market. The number of mobile app downloads for nine secondhand trading platforms, including eBay, Poshmark, and Depop, increased by about 3% from January to March. This marks the first quarterly increase in three years. Sensor Tower summarized that the week of March 31, when Trump announced the imposition of tariffs, saw a sharp year-over-year increase in downloads of secondhand clothing-related apps.
The CEO of a technology company building resale programs told the AP, "If all the inventory in Americans' closets or storage spaces is utilized, brands may be forced to limit or halt orders to overseas manufacturers, which could have a significant impact."
Nora Brotman, a 22-year-old senior at the University of Minnesota who buys most of her clothes directly from eBay, said, "I buy 1990s and early 2000s clothing secondhand at Goodwill stores and resell them on Depop," adding, "If the impact of tariffs leads to a change in the situation and curbs reckless consumption, that might not be a bad thing."
Global market research firm Circana stated, "In the past, consumers sought collectible apparel or unique vintage items, but recently, more customers are turning to secondhand fashion sites," and added, "Even when retailers offer discounts, people are choosing used clothing because it is cheaper than new products." The firm further analyzed, "In a turbulent and declining market, platforms that can create value like the secondhand market are expected to continue growing."
Meanwhile, as Trump's tariff policies have heightened global economic uncertainty, the phenomenon of investors flocking to safe assets is intensifying, with Trump continuing to pressure Federal Reserve Chair Jerome Powell to lower interest rates.
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