Zara and H&M have found a gold mine: the new move by fashion brands

The world's largest fashion brands, including Zara, H&M, Lululemon, and others, are no longer satisfied with selling only new clothes. These companies are setting up their own sales sites for pre-owned items of their brand alongside new collections. The motive for this move is purely economic: for years, their used clothes were sold on second-hand sites like eBay and Poshmark, which generated billions of dollars without the brands themselves seeing a cent. Now, the companies are demanding their share of the growing market.

Where does the buyers' money go?

According to a 2026 report by ThredUp, the global second-hand clothing market is expected to reach $393 billion by 2030, a growth rate twice as fast as the general fashion market. In the United States alone, the market is expected to reach $78.8 billion by the end of the decade. For the chains, operating their own second-hand site allows them to maintain continuous contact with customers long after the original purchase and generate an additional source of income throughout the garment's life cycle.

The data from fashion giant H&M, which launched its venture in 2021, illustrates the potential. In 2025, the company's sales of pre-owned clothing generated about $194.4 million, a 31% jump compared to the previous year. The company explains that combining pre-owned clothing with new items on the same site makes it easier for customers and allows them to make the purchase of both types in a single transaction, thereby increasing sales.

Who is leading the change in the market?

The ones driving this trend are mainly young consumers from Gen Z and the millennial generation. These young people are drawn to pre-owned fashion both out of a desire to protect the environment, but mainly to save on expenses and stretch their personal budget during a period of rising cost of living, housing prices, and student debt. For the brands, the move also provides an important image advantage and strengthens their declarations about protecting the environment and preventing clothing from being thrown into waste.

Although sales of pre-owned clothing are not expected to replace the purchase of new clothes, they are becoming an integral part of the companies' business model. Fashion brands now understand that controlling the resale chain allows them to manage the customer experience and maintain brand value. In an era where the second-hand market is growing rapidly, large companies are no longer willing to leave the profits to others.