Your customers' shopping habits just shifted dramatically. The secondhand fashion market broke free from thrift store corners and specialty resellers. Now it's reshaping how major brands operate and compete.
325% increase in fashion brands offering resale since 2021
Fashion brands saw a remarkable 325% increase in resale offerings since 2021. That growth translates to business action which means 153 US fashion brands now feature resale listings directly on their e-commerce sites.
Even major players like Levi’s, Zara, and Lululemon have made space on the website dedicated for “second hand”, “pre-owned”, or “like new” merchandise. Your competition might already be there.
Let’s take a look at the data we have
- 74% of the top 50 US fashion brands without in-house resale programs are actively considering the move
- The broader resale market is projected to reach $73 billion by 2028
- Archive, helping brands like The North Face launch resale channels, secured $30 million in Series B funding this January
Why young shoppers choose secondhand first
Gen Z drives this secondhand surge, and the reasons are crystal clear. These consumers now make up 40% of the US market, and they're voting with their wallets for sustainable options. Research shows 64% of Gen Z will pay more for environmentally sustainable products.
The data gets more specific: 58% of Gen Z shoppers prefer sustainable brands, while 73% pay premium prices for sustainable products. Here's what really matters for your business - 48% of younger generations check secondhand options first when shopping for apparel, up 7 percentage points from 2022.
Economic pressures shape these choices too. Shoppers across income levels are switching to discount retailers and hunting for private label alternatives. With 77% of Australian Gen Zs reporting money worries, secondhand shopping hits that sweet spot between values and budget constraints.
Your young customers can snag desirable brands at lower prices while staying true to their environmental beliefs. That's a powerful combination driving purchase decisions.
What this means for your brand strategy
Brand-operated resale creates ripple effects across the industry. Third-party platforms like ThredUp face new competition, but they also benefit from reduced stigma around secondhand shopping, which grows the entire market. A 2024 survey found 72% of people believe resale stigma decreased in the past year.
What do you get with having an in-house resale:
- You maintain a brand image and exclusivity that might disappear on third-party platforms
- Reintegrate returned products that would otherwise go unsold
- Capture valuable data about product lifespan and customer preferences
There are a lot of customer acquisition benefits with having reselling in your brand strategy. Nearly half of younger generations bought secondhand directly from a brand in 2024. Another 40% of consumers prefer testing a brand's secondhand items before committing to full-price purchases.
This shift changes how customers think about quality. When resale value becomes a consideration, your customers expect products that hold their worth over time. That expectation could transform product design, manufacturing, and marketing across your entire industry.
DTC Brands Face Reality: The Omnichannel Shift
The direct-to-consumer dream that captured retail headlines for years has hit a harsh wall. Brands that once proudly skipped traditional retail channels now scramble toward brick-and-mortar stores and wholesale partnerships. Pure digital strategies aren't delivering the profits they promised.
Let’s look at the numbers
DTC brands that went public with sky-high expectations are struggling badly. More than half of the 22 publicly traded DTC companies have watched their stock prices plummet by 50% or more since their IPOs. The casualties paint a clear picture:
- Allbirds announced store closures and shifted to a "more profitable" distributor model globally
- Casper was sold to private equity just two years after going public
- Outdoor Voices abruptly shuttered its stores before being acquired
Customer acquisition costs have surged by 25-40% across digital channels. What once seemed like a cost-effective way to reach customers now drains budgets faster than brands can fill them. Many DTC companies face a make-or-break moment that demands completely new survival strategies.
Smart brands move to retail partnerships
The winners are finding creative ways to blend direct sales with physical presence:
- Oura ran exclusively through direct channels for eight years after its successful Kickstarter launch. Then in 2023, the company partnered with Best Buy - a move CEO Tom Hale called "a natural pivot" for expansion and long-term growth. Success with Best Buy led Oura to Target's shelves next.
- Beauty brand Glossier keeps busy storefronts in major cities while securing exclusive shelf space at Sephora. New CEO Kyle Leahy saw shifting customer preferences coming and positioned Glossier to compete in wholesale environments. The Sephora partnership helped Glossier transition from pure-play DTC to reaching $100 million in annual sales in the first year.
- Even Warby Parker, the eyewear pioneer that helped launch the DTC revolution in 2010, now operates mini-stores in five Target locations. Their goal? Bringing "designer-quality, affordable eyewear to even more consumers".
Omnichannel becomes the 2025 priority
Retail executives now list omnichannel capabilities as their top priority for 2025. Looking at the data we can understand that omnichannel shoppers spend 1.5 times more each month than single-channel shoppers.
A third of retail executives plan major investments in omnichannel efficiencies. They're targeting real-time inventory visibility, unified customer views across channels, and multiple fulfillment options. Companies that master unified commerce report 27% lower fulfillment costs and 18% reduced cart abandonment rates.
Yet profitability challenges remain real. Picking, packing, and processing orders costs more with omnichannel approaches. Third-party vendor fees add up too. Still, 38% of retailers are pushing forward with unified commerce initiatives in 2025. They recognize the future belongs to brands that seamlessly blend online and offline experiences.
Your path forward as an emerging DTC brand? Don't abandon direct channels but make sure to complement them with strategic retail partnerships that expand your reach while keeping brand control. One mass merchant retailer found that 30% of its delivery customers will pay extra for faster service. This proves consumers value convenience across every channel you can offer them.
Your Customers Are Drinking Less - What This Means for Retail
American drinking habits are shifting in ways that will reshape entire store sections. Health-conscious shoppers are turning away from alcohol at rates that create both challenges and massive opportunities for smart retailers.
The Surgeon General's warning changes everything
January 2025 brought a groundbreaking advisory that retailers can't ignore. U.S. Surgeon General Dr. Vivek Murthy directly linked alcohol consumption to increased risk of at least seven different cancers. The official warning placed alcohol as the third leading preventable cause of cancer in America, after tobacco and obesity.
Alcohol contributes to nearly 100,000 cancer cases and about 20,000 cancer deaths annually in America. For retailers, the most concerning development? The Surgeon General suggested updating health warning labels on alcoholic beverages to include cancer risk warnings.
Here's the business opportunity: only 45% of Americans recognized alcohol as a cancer risk factor in a 2019 survey. This knowledge gap means retailers who adapt early to changing consumer perceptions will capture market share as awareness grows.
Non-alcoholic sales are exploding
The market recorded a robust 35% year-over-year growth in non-alcoholic beverage sales. This isn't just NA beer anymore - the entire category is experiencing unprecedented momentum.
Your shelf space decisions matter more than ever. The non-alcoholic beverages market is expected to grow at a compound annual growth rate (CAGR) of 8.56% between 2025-2032. Global no-alcohol volumes are forecast to expand at a CAGR of +4% between 2024 and 2028, with the zero-alcohol segment growing even faster at +7%.
The financial projections tell a clear story - the no-alcohol category alone is expected to deliver incremental growth of over $4 billion by 2028. Major retailers are already responding by expanding shelf space for alcohol-free options as consumer demand intensifies.
Gen Z drives the sober curious movement
Who's leading this transformation? Gen Z shoppers are embracing alcohol-free lifestyles at remarkable rates. About 65% of Gen Z plans to drink less alcohol in 2025, with 39% committing to a fully "dry" lifestyle. Compare this to only 30% of Baby Boomers who report similar intentions.
The generational shift is unmistakable. The percentage of adults under 35 who report drinking has dropped ten percentage points in two decades, falling from 72% in 2001-2003 to 62% in 2021-2023.
What's driving this change? Gen Z emphasizes mental health, with many citing anxiety reduction as motivation. Financial pressures play a role too—as one content creator noted, "If I'm going to choose between drinking a $22 drink or paying rent, I'm probably gonna pay rent."
This is a situation where you either adapt or get out. Sober bars are opening across major U.S. cities, and established beverage companies are investing heavily in non-alcoholic product development. For retailers who recognize this shift early, the sober curious movement represents one of the most significant retail trends of 2025.
Ambient shopping: where commerce is happening
Shopping used to be something you planned. You made a list, drove to a store, or opened a website with purpose. Those days are fading fast. Today's consumers shop while they scroll, game, and watch videos, often without even realizing they're shopping.
Social media, gaming, and video platforms become storefronts
Let’s look at how shopping habits have changed. 69% of shoppers now participate in what experts call "ambient shopping" - making purchases while doing something else entirely. Millennials lead this trend at 76%, followed closely by men at 75%.
Social platforms have become retail powerhouses that most businesses can't ignore. Research shows 39% of shoppers made a purchase based on an influencer recommendation in the past year. Gone are the days where you sell at a ecommerce store, because storefronts are everywhere. TikTok, Facebook, Youtube, Roblox and so much more. Your customers are buying from where they spend their time.
Gaming environments represent the next frontier in retail. Platforms like Roblox host branded virtual worlds where users purchase digital items. Nike created "Nikeland" on Roblox, featuring interactive spaces where users can buy virtual Nike products for their avatars. These platforms are slowly becoming a real revenue stream.
Virtual try-ons and live shopping events change the game
One of the biggest roadblocks in online shopping has always been the “try-before-you-buy” gap. That’s exactly where this virtual-try on technology comes into play. By letting customers see how products actually look or fit, brands are solving a major pain point. This technology can boost sales by up to 30% while reducing returns by 20%.
Cosmetics giant Avon saw a 320% increase in conversions and 33% increase in average order value after implementing virtual try-on technology.
Live stream shopping continues gaining momentum. About 35% of shoppers purchased something from a live stream event in the past year. Men show the strongest interest at 47%, followed by millennials at 43%. Smart retailers are already testing these formats to reach customers where they spend their time.
AI makes every interaction personal
Personalization drives purchasing decisions more than ever. Statistics show 37% of shoppers buy more often because of personalized product recommendations. Even more interesting - 34% of shoppers find value in sharing their data when they get better personalized experiences in return.
Google's Performance Max campaigns now use AI across all Google properties - YouTube, Display, Search, Discover, Gmail, and Maps. These campaigns employ artificial intelligence for bidding, budget optimization, audiences, and creatives. For retailers, this means more effective targeting with marketing that adapts in real-time to deliver personalized ads that actually work.
Your customers expect shopping to fit seamlessly into their daily activities. The brands that succeed will be those that show up naturally in the spaces where people already spend their time, rather than expecting customers to come to them.
What Do Your Customers Really Value? Price Isn't Everything Anymore
Price tags don't tell the whole story anymore. 73% of consumers identify experience as important when deciding where to shop. Your customers are rewriting the rules of what makes something worth buying.
Customer experience now sits right next to product quality and price in purchase decisions. This shift creates new opportunities for businesses that understand what modern shoppers actually want from their retail interactions.
Most shoppers open their wallets wider for better experiences
Here's a number that might surprise you: 58% of customers would pay more for better customer service. When you deliver exceptional experiences, price sensitivity drops significantly. For specific improvements like convenience, this willingness jumps to 70%.
The generational gap tells an interesting story:
- 62% of Millennials will pay more for great customer service
- 60% of Gen-Z customers share this willingness
- Only 46% of Baby Boomers feel the same way
Younger shoppers clearly place higher value on experience quality. Your service approach might need different strategies for different age groups.
79% worry about data misuse - the privacy paradox gets real
But here's the catch. While customers want personalized experiences, 79% worry about data misuse. This creates a delicate balance that many businesses struggle to maintain.
The numbers paint a concerning picture of disconnect. About 59% of consumers feel companies have lost touch with the human element of customer experience. Even worse, only 38% of U.S. consumers believe the employees they interact with truly understand their needs.
Your customers want you to know them better while simultaneously fearing how you'll use that knowledge. This paradox defines modern retail relationships.
Smart retailers build trust through first-party data strategies
Apps have become central to solving this challenge. 80% of people are more likely to buy when offered personalized choices. The key lies in collecting information transparently through loyalty programs and app interactions.
Want to understand your customers' changing preferences? Modern survey platforms like SurveySparrow make it easy to gather authentic customer insights while respecting privacy concerns. Their conversational survey format increases response rates and helps you collect the first-party data needed to personalize experiences without overstepping boundaries.
The smart move here is to recognize that customer trust becomes their most valuable asset. When you respect privacy while delivering relevant experiences, customers reward you with both loyalty and spending power.
Conclusion
These retail changes show us there is a shift in the core of consumer behaviour which most likely will determine business success over the next decade. Fashion brands jumped into resale programs, DTC companies learned that digital-only strategies fail and beverage retailers must prepare for the 65% of Gen Z planning to drink less alcohol in 2025.
The pattern is consistent across every trend, businesses that listen to changing customer values and adapt quickly are capturing market share. If you are someone who has not made the change, watch carefully how your competitors are pulling up and adapt before you are left behind. Your competitive advantage lies in understanding that retail success now requires both smart technology and genuine human connection. The brands thriving in 2025 blend innovation with authenticity, convenience with care, and growth with genuine value creation.
Start by listening to your customers through meaningful conversations, whether through modern survey tools like SurveySparrow or direct feedback channels, to understand how these trends specifically impact your business.
The choice is simple: evolve with your customers or watch them choose competitors who will.
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