As the MZ generation embraces second-hand clothing, South Korea’s fashion landscape undergoes a transformative shift, fueled by economic factors and changing consumer attitudes.
A recent trend in South Korea’s fashion landscape is the growing popularity of second-hand clothing, particularly among the MZ generation, which includes individuals born from the early 1980s to the early 2000s. This demographic is increasingly drawn to platforms offering live broadcasts on social media, particularly Instagram, where users like 30-something Mr. Lee have reported significant excitement in purchasing high-end brands at sharply reduced prices.
Mr. Lee described his engagement with second-hand fashion, noting, “I’m very interested in fashion, so it’s fun to see what clothes are available, and I often buy good products when they come up. Feeling like I’ve ‘scored’ something is the highlight of second-hand fashion.” This sentiment encapsulates a broader shift in consumer behavior driven by rising inflation and the allure of obtaining unique fashion finds at a fraction of their original cost.
According to Statista, a global market research firm, the domestic second-hand clothing market in South Korea is anticipated to expand, making up 24.3% of the overall clothing market by the year 2027, an increase from 18.1% in 2023. The domestic resale platform Bunjang reported a 53% increase in the fashion category transaction volume from the previous year, with the fourth quarter witnessing an 87% year-on-year surge in transactions within that category. Furthermore, listings for both men’s and women’s outerwear rose by around 30% during this period.
In recent years, perceptions surrounding second-hand clothes have shifted dramatically. Traditionally, many young people harbored a strong aversion to wearing previously owned garments. However, the rise of retro fashion and value-oriented consumption has transformed this view. “While older generations view goods through the lens of ownership, younger generations focus more on the concept of usage,” stated Lee Eun-hee, a professor of consumer studies at Inha University. She emphasized that younger consumers prioritize their need for items over mere ownership desires and highlighted how advancements in technology have simplified the process connecting buyers and sellers.
As the demand for second-hand fashion grows, established domestic fashion companies are entering the market. Notable among them is Musinsa, which has filed a trademark application for ‘Musinsa Used’ to develop its own second-hand fashion segment. Likewise, LF (093050) has established plans to launch a resale brand in collaboration with Madleen Memory, a resale solution operator, while Kolon FnC has been operating its own second-hand platform, the ‘OLO Relay Market,’ since 2022.
Globally, major companies have begun to recognize the potential in the second-hand market. Luxury giants such as Kering Group, the parent company of Gucci, as well as Burberry Group in the UK and Stella McCartney have announced plans to venture into the resale sector. Meanwhile, Uniqlo, a popular SPA brand, launched a pop-up store focused on second-hand clothing in Harajuku, Tokyo, last October.
Despite this expansion, the second-hand fashion industry faces significant challenges. Platforms often struggle with a low-profit structure that complicates operations, requiring significant investment in staff and infrastructure for tasks such as inventory management, inspection, and photography. Additionally, as unsold merchandise accumulates, operators may grapple with inventory burdens and risks associated with counterfeiting, which can tarnish brand credibility.
The dynamic landscape of fashion, influenced by shifting trends and the rapid turnover of fast fashion brands, further complicates the second-hand market’s outlook. Fast fashion allows consumers access to trendy yet inexpensive items, such as coats priced at 50,000 won and t-shirts for 5,000 won, creating strong competition for second-hand alternatives.
One industry insider remarked, “With the prolonged economic downturn and changes in young people’s perceptions, the growth rate of the second-hand fashion clothing market is increasing.” He elaborated that the current industry climate encourages a shift toward second-hand options as a potential solution for navigating challenges stemming from domestic market stagnation. While second-hand platforms may appeal to cost-conscious consumers, operators must pursue diligent and careful strategies to manage their complex operational needs effectively.
Source: Noah Wire Services
