Fast fashion and the rise of resale

September 15, 2020

Fast fashion and the rise of resale

We believe the Covid-19 pandemic will have a lasting impact on consumer habits, specifically how consumers view their relationship with apparel and luxury. As they rethink their impact on the environment, we could see a rapid adoption of resale. If consumer habits do not change, the fashion industry will use up a quarter of the world’s carbon budget by 2050.1

We therefore believe resale is in the early stages of a long-term secular growth trend which will have significant positive impacts on the sustainability of fashion and luxury at the industry and company level.

We expect that the resale market will continue to grow as consumer spending shifts and resale becomes a key focus for apparel and luxury companies. The firms that embrace this trend should deliver stronger future growth, as well as leave a smaller environmental footprint, leading to continued improvements in the circular economy.

Leigh Todd, senior portfolio manager, Brian Blongastainer, senior research analyst, and Katherine Kelly, research analyst, Mellon

1 Ellen Macarthur Foundation. A new textiles economy: Redesigning fashion’s future.

All investments involve risk, including the possible loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.

Charts are provided for illustrative purposes and are not indicative of the past or future performance of any BNY Mellon Investment Management product.

Mellon is a global multi-specialist investment manager dedicated to serving our clients with a full spectrum of research-driven solutions. Mellon Investments Corporation (Mellon) is a registered investment adviser and an indirect subsidiary of The Bank of New York Mellon Corporation.

BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management organization and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries generally.

This material has been distributed for informational purposes only. It is educational in nature and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.

Views expressed are those of the manager(s) stated and do not reflect views of the other managers or the firm overall. Views are current as of the date of this publication and subject to change. This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Certain information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Investors should consult a legal, tax or financial professional in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Mellon and BNY Mellon Securities Corporation are subsidiaries of BNY Mellon.

Not FDIC-Insured | No Bank Guarantee | May Lose Value