The Emperor’s Old Clothes: How Fashion’s Biggest Brands Are Playing Catch-Up on Resale

The world of fashion has long been a place where trends come and go, but one thing is increasingly clear: the industry’s biggest players are finally acknowledging what consumers have known for years – resale is not just a niche market, it’s a growth opportunity. For decades, brands like Zara, H&M, Lululemon, Levi’s, and REI watched as eBay, Depop, Poshmark, and the RealReal raked in billions of dollars from the sale of their own products – products that had already been worn by someone else.

These brands are now launching their own resale platforms, where customers can buy and sell secondhand versions of their products alongside new ones. This move is as much about profit as it is about sustainability – and raises important questions about control, ownership, and the future of fashion.

Branded resale allows companies to “own the entire fashion life cycle,” from initial sale to resale, repair, and eventual recycling, according to Shawn Grain Carter, a professor of business management at New York’s Fashion Institute of Technology. By operating their own resale marketplaces, brands can capture a share of the growing secondhand market while maintaining relationships with customers long after the original purchase.

Consumers are driving demand for sustainable fashion practices – and resale is seen as a key part of that equation. Younger generations, particularly Gen Z and younger millennials, are more interested in circular fashion than ever before, thanks to growing concerns about climate change and waste management. Brands can tap into this trend while also reducing the pressure on their bottom line.

As Neil Saunders, managing director at market research firm GlobalData Retail, notes, “When you start to see some of the big names on [resale], it definitely raises conversations like, ‘Hey, why are we not playing in this space? What’s our strategy around that?’”

This shift may signal the end of third-party marketplaces dominating the resale game. With brands taking control of their own resale channels, consumers can expect a more seamless and curated experience – one that prioritizes sustainability and affordability.

However, there’s also a darker side to this trend. As Saunders notes, “There definitely is a viewpoint among some of the more premium brands that they would prefer to control that channel, or at least have some degree of control.” In other words, these brands want to dictate how their products are presented, sold, and recycled – and they’re willing to do whatever it takes to make that happen.

This raises important questions about ownership and control in the fashion industry. If brands can simply launch their own resale platforms and expect consumers to follow, who really owns the secondhand market? And what does this mean for smaller players, like independent designers or vintage shops, who have been operating in the resale space for years?

The future of fashion will be shaped by a complex interplay of sustainability, affordability, and control. Will brands use their newfound power to prioritize consumer needs, or will they simply try to exert greater control over the market? Only time will tell – but one thing’s for sure: the emperor’s old clothes are about to get a whole lot more expensive.

The Rise of Branded Resale

Brands like H&M and Lululemon have already launched their own resale platforms, recognizing the value of secondhand fashion in both practical and sustainable terms. These initiatives aim to capture a share of the growing secondhand market while maintaining relationships with customers long after the original purchase.

However, this move may stifle creativity and entrepreneurship among smaller players in the industry. As one independent designer noted, “When brands launch their own resale platforms, it feels like they’re trying to shut us out. We’ve been operating in this space for years – what’s next?”

The Sustainability Imperative

Resale is seen as a key part of the effort to reduce waste and promote circular fashion practices. Brands are being forced to adapt – and fast – as consumers become increasingly aware of the environmental impact of their purchasing decisions.

However, resale has to complement broader environmental initiatives to be meaningful, according to one expert. In other words, brands can’t just launch their own resale platforms and expect consumers to follow – they need to demonstrate a genuine commitment to sustainability.

The Competitive Landscape

This shift may not be a zero-sum game. Consumers will still shop on eBay, Depop, Poshmark, and the RealReal – but they’ll also expect more from these new branded channels. Smaller players in the industry will have to adapt or innovate to thrive in this rapidly changing landscape.

As one market expert noted, “There’s definitely a little bit of bandwagoning” when it comes to resale. But is this enough to drive real change in the fashion industry – or will brands simply use their newfound power to maintain control over the market?