High Fashion Is No Longer in Vogue

By: James Flippin · April 12, 2023 · Reading Time: 3 minutes

Fashion Trends

The effects of high inflation over the past year continue to impact consumer trends, as more shoppers stray away from what’s traditionally been considered fashionable. Today’s consumer shows a strong preference for affordable clothing brands over premium names.

Some of the most popular brands right now, based on resale value, are Madewell, Zara (IDEXY), Urban Outfitters and Free People (URBN), Abercrombie & Fitch (ANF), and Levi’s (LEVI). Comparatively, consumers aren’t as interested in Prada (PRDSF), Gucci (PPRUY), or Louis Vuitton (LVMUY) — even when they are on sale.

Two Main Benefits

In general, re-worn clothing — thrift, secondhand, or upcycled apparel shopping — is a quickly growing market. With the surging popularity of sites like Depop (ETSY) and Poshmark (POSH), it is projected to reach $70 billion in sales by 2027. As many as 75% of all shoppers say they’re open to buying secondhand clothing. For the younger Gen Z, this percentage jumps to 83%.

The desire to purchase used clothes is two-pronged. On one hand, it’s a great way to save money amid the most challenging inflation in decades. On the other, buying secondhand helps consumers shop sustainably and reduce the high levels of waste associated with the clothing industry.

Secondhand Shopping

Brands have taken notice of this trend. Many clothing companies have started offering their own resale programs — as many as 88, according to a GlobalData report, which marks a nearly 250% increase from 2021. This gives consumers the option to buy secondhand products directly from the brand, instead of a third party.

Notably, the decision by consumers to rock secondhand clothes now comes with a sense of pride. In the past, it was cool to wear the most expensive brands. But, these days, it’s more stylish to flex your budget than to stretch it.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender