Market data clearly indicates that the second-hand clothing sector is entering a phase of dynamic, multi-year expansion, and the role of specialized logistics centers in this area is becoming a key element of the fashion trade infrastructure in Europe, an element that will very often be the determining factor in the success or failure of a venture. Changes in consumer behavior (according to a report by Boston Consulting Group and Vestiaire Collective, the second-hand clothing and luxury goods market has become one of the fastest-growing segments of the fashion industry, and its value is expected to grow 3 times faster than the market for new products; moreover, according to KPMG, by 2030, as much as 50% of fashion purchases will be made online), as well as environmental pressure and new EU regulations (EU Strategy 2030) mean that the requirement for product durability, repairability, and recycling, and the widespread availability of reuse and repair services, will become increasingly common. From an operational perspective, this requires the launch of specialized processes for handling apparel resulting from re-commerce, refurbishment, and recycling. The fashion industry is therefore undeniably faced with the need to build a logistics infrastructure that can ensure the quality, standardization, and scalability of these services, while also operating in compliance with the law (e.g., recycling and waste management regulations).The global second-hand apparel market is projected to grow from $96 billion in 2021 to $218 billion by 2026. In Poland, the re-commerce market is estimated at PLN 5–6 billion, with the greatest future dynamics in the online channel. Nevertheless, consumers are increasingly shifting their shopping habits from the 'new' model to the 'value', 'sustainable', and 'refurbished' model. This trend is already visible in the strategies of global players such as Zalando and H&M.It is worth noting, however, that distribution centers for re-commerce differ significantly from traditional warehouses. They are dominated by zones dedicated to quality control, classification, refreshing, and repair processes; they require dedicated process flows for refurbishment, conveyors, and technical workstations. Furthermore, storing such goods requires flexible solutions such as chaotic storage or multi-SKU storage due to the fact that we are dealing with practically unique and non-repeatable SKUs. Additionally, from a regulatory perspective (product passport, mandatory transparency), companies will have to ensure traceability and the full lifecycle path of the product, which often requires WMS systems expanded with AI modules.Poland absolutely has the potential, due to its location, experienced employees, and existing base of large fashion industry distribution centers, to become one of the main European hubs serving the European 'pre-owned' apparel market, both for dedicated e-commerce platforms and for retail chains that, predicting this trend, are opening up to circular economy models within their brands. It is worth mentioning that, according to the latest BCG report, second-hand items within fashion and luxury brands already account for 8% of total sales and will reach 10% by 2030, which suggests further projects in this area.In the coming years, second-hand e-commerce centers will not be a mere supplement to the market, but will become an integral part of the horizontal supply chain, similar to how fulfillment services became integral a dozen years ago.
Author: Damian Kołata, Head of Commercial, Poland&Czechia