Why Brand-Owned Resale Is Booming

47% of consumers are more likely to make a first-time purchase with a brand that offers trade-in credit for used apparel.

Kieran Ryan

April 9, 2025

one male and two females in workout clothes stretching

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Brand-owned resale is on the rise.

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Why? Consumer demand is surging, and brands recognize the financial benefits of investing in the space.

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According to ThredUp’s latest Resale Report, 47% of consumers are more likely to make a first-time purchase with a brand that offers trade-in credit for used apparel—a 25-point jump from 2023.

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Lululemon's "Like New" program exemplifies this trend. Launched nationwide in 2022, it allows customers to trade in gently used apparel for store credit, with 100% of profits supporting sustainability initiatives. To expand its reach, Lululemon is ramping up investments in the channel, including a recent SXSW pop-up in Austin with resale partner Archive. The two-day event featured fitness classes, wellness experiences, and influencer-curated Like New collections available for purchase—some classes even had 300-person waitlists, highlighting strong consumer interest.

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yoga class — *Lululemon is promoting its resale program with pilates classes and partnerships*

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With other brands like Patagonia and Outerknown embracing resale, too, it’s clear that circular fashion isn’t just a sustainability play—it’s smart business. The brands leading the charge are making bigger profits.