Fashion cannot be ignored.

Owned fashion is grabbing a share of the consumer’s wallet, especially among those 40 and under.

BCG’s latest report with B-corp luxury retailer Vestiaire Collective says secondhand could make up 27 percent of regular shoppers’ closets next year, up from 2 percent of the current number, with Gen Z at 31 percent and 44 percent interested in buying and selling. respectively. Millennials follow close behind.

“We are proud to see that sustainability and environmental awareness are increasing drivers for customers to buy and sell, but also for companies looking to integrate circularity into their business models,” said Fanny Moizant, president of Vestiaire Collective Cofounding. “While there are many ways for brands to explore this market, both internally and with external partners, partnering with an established platform such as Vestiaire Collective, accessing a community of over 23 million resale consumers worldwide, as well as decades of data, pricing, logistics and fulfillment expertise.

The report surveyed 6,000 consumers in 2020 and another 2,000 this year to gauge how people will interact with the resale economy, accounting for 3 percent to 5 percent of the broader apparel, footwear and accessories market, and up to 40 percent. With nearly 60 percent reporting learning about or making a first-time purchase through a resale platform, it points to a range of opportunities for brands, including discovery.

Consumers have also demonstrated their motivation to shop privately. Although the report describes affordability as a “reducing” trend, more than half of survey respondents say that budget-friendly prices still lead the way. Instead, choice and choice gained through resale are becoming key drivers for 40 percent, while the same percentage say buying second-hand makes them feel good about consuming responsible fashion. That’s followed by 35 percent who enjoy the “excitement” of finding items that no longer fill primary market channels.

Many consumers in the 60 percent still think Marie Kondo is doing their closets and giving away unwanted clothes the old heavy-ho, the report says. The same percentage would like to recoup their investment in those items, and 39 percent would use the proceeds to purchase a new item for them.

“At BCG, we have been analyzing the global resale market in detail since its infancy,” said Sarah Willersdorf, head of global luxury at BCG and author of the report. “It’s now clear that consumers are embracing the changing way they buy and sell their clothes. There is a huge opportunity for brands entering this market to capture new customers and for existing consumers to shop motivated by sustainability, affordability and exclusivity.”

ThredUp lists influence.

As more brands show their commitment to reducing waste and being planet- and people-friendly, impact reports have become more common to show actual data to back up those sustainability claims. And online resale platform ThredUp is the latest to release an impact report outlining the company’s environmental, social and governance (ESG) strategy and detailing the company’s progress on ESG initiatives through 2021.

“ThredUp’s core purpose and mission is rooted in circularity,” said James Reinhart, co-founder and CEO of ThredUp. “They are ingrained in everything we do. I’m proud to share our first annual Impact Report, which describes how we’re helping our people, our communities and the planet—full circle—while growing a sustainable business.”

Looking at its impact on the environment, ThredUp reports that since its founding in 2009, the company has processed 137 million items and displaced 1.3 billion pounds of carbon emissions to date.

And while the company’s core business boasts a 95 percent sell-through rate, ThredUp has focused on refining its approach to managing inventory in its aftermarket business, which includes pieces that don’t sell.

About 60 percent of the items ThredUp receives are listed on the marketplace, with the remaining 40 percent going to the company’s aftermarket program. This also includes Rescue Box items that don’t fit the criteria for selling on the traditional ThredUp marketplace and are sold in bulk in categories like shoes and sleepwear. In the year Through 2021, the company has sold approximately 2.5 million items through the Rescue channel and diverted more than 1.48 million pounds of clothing from third-party aftermarket channels.

The company also launched its Resale-As-A-Service (RAAS) arm in 2018, which allows apparel brands to offer items for resale on their website. In the year By the end of 2021, ThredUp counts 28 brand clients in the program, including Adidas, Fabletics, Madewell, Crocs and Gap.

Tracking emissions is an integral part of ThredUp’s sustainability measures. Overall, the company’s emissions increased 17 percent to 154,942 MT CO2e, primarily due to a 24 percent increase in international shipping. International air transport accounted for 96 percent of retail emissions. ThredUp does not use air freight for US shipments, and by consolidating orders, it has reduced US-based shipping emissions by 54% by 2021. And overall emissions have increased, with direct emissions falling from 759 MT CO2e in 2020 to 691 MT CO2e in 2021.

Social impact and employee experience are also included in ThredUp 2021 goals. The company led $20,000 on behalf of The Future Fund, which provides grants and investments to nonprofit and community-minded companies. The retailer also donated $75,000 to charities such as Stop Cancer and Buy America.

To improve the employee experience, ThredUp has launched several programs designed to make working for the company more fair and enjoyable. Two new initiatives include an outbreak management task force and an enhanced employee safety program. ThredUp has embarked on an ongoing initiative to strengthen diversity and representation by conducting an employee-led Diversity, Equity, Inclusion and Membership Committee. The company established board oversight on ESG and an employee-led Corporate Social Responsibility (CSR) committee.

In its recruiting practice, ThredUp implemented the 2021 Diversity Search Checklist to enhance employers’ ability to engage a more diverse talent pool. The company offers a number of learning and development programs for its employees, including interactive workshops led by internal and external subject matter experts such as ThredUp University, BizUp, an annual mini-MBA course and fireside chats with leadership experts, among others.

In 2021, ThredUp launched a new career website focused on the company’s commitment to diversity, equity, inclusion and ownership. Looking at the demographics, 70 percent of ThredUp’s workforce is female and 72 percent is minority. Among senior executives, 30 percent are women and 30 percent are minorities.

And those moves seem to be paying off for the company, as 95 percent of employees say they trust senior management’s decisions and 88 percent say they feel included in ThredUp. Additionally, 92 percent of ThredUp employees say their opinions count at the company, and 83 percent of employees say people from all backgrounds have an equal opportunity to succeed.

“Together, we are motivated by our mission,” said Natalie Brace, Chief People and Diversity Officer. “We believe we all have a purpose in the work we do and the impact it creates.”