For years, people in India have been going for second-hand purchases, driven by affordability and flexibility of usage. Thrift shopping was, however, restricted in terms of wider acceptance. But now, led by millennials and Gen Z who are open to experimenting, thrifting – or shopping for things pre-loved (used) – is gaining currency and going digital in a big way. “Thrifting has transformed itself to come to the online medium and jumped on to the social shopping bandwagon as well,” says Anuradha Balasubramanian, Head of Poshmark India marketplace. The US-based social marketplace entered India in September.

The numerous thrift store pages on Instagram is proof that thrift shopping is developing into a major trend. While the phenomenon is primarily driven by low prices, focus on sustainability is also giving it a boost, say brands and industry experts. Rajat Wahi, partner at Deloitte India, says thrifting, which is already a big part of social commerce, can touch about 5% of the total Indian retail market in the next five years.

For Poshmark, which enables both thrifters and small businesses to transact via its social marketplace, 60-70% inventory is pre-loved or new items that are unused (with tags). New Delhi-based social marketplace Stage3 managed to get more than 20,000 product listings on the thrift shopping section within a month of its launch on the firm’s social app, claims co-founder Sabeena Puri. Stage3 has significantly expanded the scope of thrifting, enabling individuals, influencers and celebrity stylists to list their closets on the app. Having a strong network of influencers and content creators is integral to the company’s business narrative that targets the social media-savvy Gen Z and millennials. Stage3’s community of influencers promotes its wardrobes on Instagram, creating room for easy discoverability of the brand.

Thrifters are typical customers who list items from their wardrobes on social marketplaces and are usually categorised as non-business sellers. Balasubramanian expects more thrifters to sign up for Poshmark in the coming months.

Thrifters on the marketplace primarily belong to the 18-30 years age bracket. “Gen Z and millennials are always looking for value. They do not mind buying a used branded product in a great condition if they get a good deal,” says Balasubramanian. Stage3 plans to partner with Bollywood stars and facilitate listing of their pre-loved items on the app. “Traditional fashion e-commerce platforms like Amazon and Myntra are outdated. When you look at young India, they spend most of their time on social media. New shopping is going to be social shopping which allows for experiential and selective shopping by the youth,” says Puri.

Social commerce, which currently is a $1.5-2 billion market, is expected to be worth as much as $20 billion in just five years, and will likely hit nearly $70 billion by 2030, according to analysts at Bain & Company. It is pertinent to note that social marketplaces or the wider social commerce space allow for direct interaction between buyers and sellers, thereby scoring over the traditional marketplace model. Companies typically enable this feature by tapping into the network of social media apps like Instagram, Facebook, WhatsApp and creating their own social apps and platforms.

Balasubramanian says with Poshmark, thrifters can leverage the reach of a big platform. While buyers and sellers get an opportunity to directly interact and transact seamlessly, the varied aspects of operational logistics, including shipping and enabling mode of payments, are taken care of by Poshmark. Tackling the challenges of delivery and payments can be difficult for thrifters, says Balasubramanian. “Gen Z and millennials are digitally native. They are empowered users who use various tools on the app well. We see this as a huge potential for our growth in India,” adds Balasubramanian.

People are opting for used products that are in good shape and contribute positively to the environment. “Fast fashion is less environmentally friendly due to frequent launches, style changes and higher churn,” says Deloitte India’s Wahi. There is a perceptible shift in mindset of Gen Z and millennials with some proportion of the segment becoming environmentally conscious, says Wahi.

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