Fashion expert Tosha Hays unpacks the culture, economics, and technology behind fashion’s move toward resale, revealing how AI, design, and a new generation of consumers are forcing brands to rethink everything from supply chains to storytelling.
Resale is rewriting the rules of fashion, and the seismic shift underway is no longer a footnote — it is the main event. While global apparel sales continue to climb, what is happening in the secondary market is even more astonishing: the U.S. secondhand market is on pace to reach $73 billion by 2028, with resale apparel growing three times faster than the broader retail sector, according to ThredUp’s 2024 Resale Report. The hunger for something different — more responsible, more original — has made thrift, vintage, and peer-to-peer resale as coveted as the latest runway drop. But as the appetite for circular fashion deepens, many of the industry’s biggest brands remain on the sidelines, unsure how to pivot legacy models built on speed and margin.
The reasons, says fashion industry expert Tosha Hays, are deeply embedded in the culture of the industry. “Most brands are unprepared because they remain focused on short-term profitability over long-term brand health,” she told Ethos via email. “Decision-making is driven by immediate margin gains — the cheaper the fabric and the faster the production cycle, the better the numbers look on a spreadsheet. But this mindset ignores what’s happening in the broader market: consumers are becoming more values-driven, and loyalty is increasingly built through trust, transparency, and sustainability.”
The rift between what consumers want and what most brands offer is growing ever more obvious. Gen Z and Millennials, whose collective spending power already tops $360 billion, are not interested in fashion that simply feeds the algorithm. Instead, they seek out stories, authenticity, and, crucially, accountability. “Gen Z and Millennials are redefining what value means in fashion. For them, ‘new’ is no longer a requirement — cool, authentic, and sustainable matter more than having the latest drop. Resale is not only normalized; it’s aspirational. It’s a form of self-expression, a way to participate in sustainability, and a reflection of conscious consumerism.”
This generational power shift is already reshaping what gets made, what gets bought, and how collections are built. While legacy brands grapple with internal inertia and go-to-market cycles that feel increasingly out of sync, new leaders are emerging. “Legacy brands, on the other hand, are often trapped by traditional structures, legacy systems, and internal inertia. Their cultures are not designed for rapid innovation, and their go-to-market models are still rooted in seasonal, trend-based planning cycles. As a result, they struggle to keep up with a generation that expects brands to move fast, think sustainably, and meet them in resale marketplaces that are curated, digital-first, and socially aligned.”
Some names are finding a way forward. Urban Outfitters’ Nuuly platform — now public and profitable — reported a 96 percent jump in active subscribers in its most recent quarter, with parent company URBN crediting Nuuly’s “circular model” as a primary growth driver. Elsewhere, Free People’s own resale initiatives tap directly into its bohemian-spirited community, evolving the brand’s narrative from just trend-focused to value-driven. “Some brands are catching on. Free People, for example, has created a resale experience that feels native to their brand — curated, stylish, and community-driven. It’s not just an add-on; it’s an evolution of the brand story. That’s what younger consumers are looking for — authenticity, not just a checkbox.”
Resale is not a trend to be weathered, but a lever for resilience. As brands struggle to navigate ongoing supply chain disruptions and escalating tariffs on everything from Chinese-made textiles to finished apparel, there is a growing case for alternative models that de-risk global volatility. The fashion supply chain, long reliant on cheap labor and just-in-time inventory, has become a point of vulnerability. “Resale isn’t a short-term fix — it’s a long-term strategic shift. While tariffs and supply chain volatility are immediate pressures, building a resale model is about future-proofing your brand,” Hays says.
That is not to say there is any easy shortcut. “Most fashion brands operate on nine to eighteen-month product calendars, which means that any new product designed for circularity today won’t re-enter the market as a resale item for years. The return on investment is not instant — but the compounding benefits are real.” There are interim steps that brands can take—curating vintage or peer labels into their own platforms, as seen in the likes of Nuuly and Farfetch’s Second Life — blending the allure of the new with the responsibility of reuse. “Brands can offset volatility by curating resale marketplaces that are not limited to their own label,” Hays says. They can source secondhand or vintage pieces that align with their aesthetic and community — much like a multi-brand boutique — while using the platform to deepen customer engagement, reduce reliance on new production, and drive margin without manufacturing risk.”
Resale’s impact goes beyond dollars and cents. The environmental math is compelling: Buying used instead of new reduces carbon emissions by 25 to 30 percent, according to the Ellen MacArthur Foundation. WRAP, the UK Waste & Resources Action Programme, finds that extending the life of a garment by just nine months can reduce its environmental impact by up to 30 percent. ThredUp data puts it in stark terms: “shopping secondhand displaces nearly one billion pounds of CO₂ emissions annually.” Energy and water savings are even more dramatic; used clothing saves 79 percent of the energy and 88 percent of the water compared to producing new garments. Buying pre-owned can cut a garment’s carbon footprint by up to 82 percent.
Circularity, though, is not simply a supply problem; it is a design and technology opportunity. “One of the most powerful ways new technology — particularly AI — can accelerate circular design is by reducing waste before a product is ever made,” Hays says. “Predictive tools and digital prototyping allow brands to test designs, colorways, fit, and pricing scenarios virtually, helping teams validate what customers actually want before entering production. This dramatically cuts down on overproduction and inventory waste—two of fashion’s biggest environmental liabilities.”
Brands like Adidas, Allbirds, and even Louis Vuitton have all experimented with AI-driven demand forecasting, while a wave of next-generation material startups are deploying digital twins and 3D simulation to reimagine durability and repair. Hays says technologies like 3D design, digital twins, and material performance simulation enable smarter product development with durability and repairability in mind. Brands can build modularity, anticipate stress points, and even embed care or repair instructions digitally, “all before the first sample is cut.”
What separates the lasting from the fleeting is purpose. “A successful resale strategy is deeply integrated into the brand’s identity — it feels like a natural extension of the brand’s purpose, not a bolt-on or bandwagon move. Hays says it starts by asking: “Does this align with the brand’s values, product lifecycle, and what our customers actually want?” If the answer isn’t a clear yes, the strategy risks coming off as “inauthentic or opportunistic.”
Patagonia’s Worn Wear, Eileen Fisher’s Renew, and Arc’teryx’s ReBird are routinely cited as proof that resale can move markets, not just message boards. Yet, despite momentum, inertia remains the rule for most labels. “Traditional KPIs prioritize velocity — sell-through rates, inventory turns, and frequent newness. Durability disrupts these metrics, requiring a new framework for success.” The very structures that made fast fashion so dominant — optimized for speed and turnover — are now the barriers to longevity and circularity. “Creating products for longevity demands better materials, modular construction, and repair-friendly features — all of which add cost and time to already tight development calendars. Fast fashion supply chains are built for speed and volume, not lifecycle thinking. Moving toward circularity often requires a complete reevaluation of vendor partnerships, lead times, and sourcing strategies.”
Add to this the pressure from ongoing tariffs and an unpredictable regulatory environment, and fashion finds itself forced to reckon with its own dependencies. “Brands must proactively reduce dependency on high-tariff regions — particularly China — and reallocate production to lower-tariff or more stable markets such as Vietnam, India, Mexico, and Central America. This won’t happen overnight, and it requires real commitment: new vendor relationships, revised supply chain logistics, and in some cases, re-engineering products for local capabilities.”
Digital transformation is the final, critical layer for brands aiming to remain competitive as resale and conscious consumerism move from the edge to center. Here, Hays sees specific opportunities: digital product passports embedded in every item, AI-powered demand planning, fully traceable supply chains, and customer-facing tools for repair, tracking, and impact analytics. “When resale is seamless, brand-aligned, and user-friendly, it becomes a loyalty driver, not a loss leader.”
Perhaps the most vital mindset shift is seeing vintage and thrift as not just garments, but as modern collectibles. “Because when we treat vintage as collectible, we assign it value — emotional, cultural, and environmental. That shift in mindset helps keep garments in circulation longer and out of landfills. If a piece is seen as timeless or worthy of preservation, it’s more likely to be cared for, repaired, and passed on — not discarded. It’s the difference between fast fashion and fashion with legacy.”
Related on Ethos:
