At first glance the growing resale market seems to be a women’s world. Yet men have been been a growing force in the market – as buyers. The global resale market is predicted to reach a value of $51 billion by 2023, according to resale site ThredUp. The popular resale site was founded in 2009 as a men’s shirt-swapping business. While women were the first to become active players in the resale market, men are starting to get into the game. Still, there’s about ten times more women’s clothing listed on eBay than men’s clothing, according to Reselling Revealed, which tracks menswear resale bestsellers. <h3><strong>A New Point of View</strong></h3> Millennial and Gen Z men are open to buying and selling second-hand apparel. With lower incomes, it’s often the only way they can afford to level up their wardrobes. It’s also an opportunity to find pieces that they can use to create their own personal style. Aside from designer handbags and shoes, women look to resale to find one-of-a-kind items. For this reason, vintage remains in demand. For men, brand plays a key role. “Brand is king,” according to Reselling Revealed. Interestingly, the site ranks brands as diverse as Territory Ahead, a brand that makes quality casualwear, Ermenegildo Zegna, Filson (an outdoor brand), Carhartt (workwear), Schott (legacy leather jackets), Woolrich (outerwear), Loud Mouth Golf (golfwear but with bold prints), Harley Davidson (of motorcycle fame), Brooks Brothers and Orvis as the top menswear brands to be on the lookout for, in terms of the resale potential. <blockquote> 'Brand is king', according to menswear resellers. Success is about identifying the right brands.</blockquote> <h3><strong>What Men are Searching For</strong></h3> In general, menswear on resale sites is about 50-70 percent less than retail prices. However considering the steep discounts that have become a standard part of the retail business model, savings alone is not drawing in this volume of customers. While many people will attribute this to ‘millennials who are looking to be more sustainable, the motivations and buying habits of a few (but high profile) doesn’t define a trend. People who are active traders in re-commerce know that this and instead focus on factors that they identified as sales drivers. The sales driver is a cocktail of three big consumer wants. It’s the combination of brand, discount and access to items that are more unique (and often better quality). Menswear is also seeing the rise of a hybrid retail model, which sells both new and used garments. Grailed.com, which claims to be the largest online platform for menswear, offers second-hand apparel alongside new merchandise. The two are seamlessly integrated on the company’s website. “The Grailed customer is a purposeful shopper. Sometimes he’s looking for a luxury item at an affordable price. Other times he’s looking for a better deal than he can find at the mall,” said Arun Gupta, founder and CEO in an interview with Racked. <blockquote> The Magic Formula: A combination of brand, discount and access to items that are more unique. </blockquote> <h3><strong>The Drop Model</strong></h3> While the volume might be accounted for by more mainstream brands, the profit zone in the menswear space is reselling new merchandise. This is called ‘for profit’ or the ‘drop model’. Whether it's limited-edition sneakers or archival designs, resale sites have become ‘apparel exchanges’ where new, limited edition, merchandise is offered to the highest bidder. It's a micro-industry built on limited supply and overwhelming demand. It's largely driven by Nike x Off-White sneakers, Supreme T-shirts and, to a certain extent, traditional luxury brands like Louis Vuitton, Dior Homme and Balenciaga. It's a micro-industry built on limited supply and overwhelming demand. Limited edition product drops of hyped up brands have proven to be gold mines for savvy resellers who can get their hands on the products as soon as they hit the market. The key phrase being ‘as soon as they hit the market’ because after that premiums for these items can rocket. Reselling an item that was purchased at a premium price often leaves a very slim margin for the seller. <blockquote> Right now the resale market is benefitting from decades of clothing that's been piling up in consumers' closets. The availaibiity of 'inventory' is bound to get a bit thinner as we reach a peak in closet cleaning.</blockquote> <h3><strong>Where the Growth Opportunities</strong></h3> While drops of brands like Yeezy and various Nike collabs make the headlines (and the profits), you can’t deny the steady growth in more mainstream brands on resale sites. This is not being driven by consumers sellling directly on eBay, Depop, or other platforms (all that continues to grow). Instead, it's a growing sector of experienced buyers who understand what is likely to sell to the resale consumer. These people or companies buy from the consumer and then resell on either their own sites or other popular resale platforms. While the product prices are more affordable than hype brands, margins for sellers can still be very attractive. For example, a Territory Ahead shirt that was purchased by a seller for $5 was resold for $31.58, according to Reselling Revealled. An Ermenegildo Zegna 100% cotton buttondown shirt was purchased by the seller for $7 and then resold on eBay for $48.99. For consumers, an example would be a Tomas Maier 100% cotton buttondown that was listed on resale site Menswear Market’s for $45. A similar 100% cotton buttondown from Tomas Maier was listed for $111 on Yoox, marked down from $215. A gentley used Billy Reid sweatshirt/pullover was on Menswear Market for $69. On Billy Reid’s own online store it sells for $195. For a consumer who has more time than money, scrolling through listings on a growing number of resale sites can be well worth it. The big downside of course is that either the item is you size or it’s not. For classic garments like men’s dress shirts, there are usually similar items in other sizes to choose from. For more unique items this option does not exist. Still, with massive amounts of inventory just a mouse click away, consumers can search until they find the right garment in the right size. For sellers, competition for quality resale items will become more intense as more players jump in. As department stores and mass market platforms like Walmart (which recently partnered with ThredUp) add resale departments it will mean more competition for ‘inventory’ that can be resold. Right now consumers are going through a phase of emptying out closets that haven’t been dealt with in years. However, once this initial wave of ‘cleaning catharsis’ is over, there will be a lot less available for resale. At that point, the resale market might see a sharp cooling off.