Second-hand retailer ThredUp's 6th Annual Resale Report revealed that thrifty millennial are now increasingly looking at used clothes and is forecast to spiral up to $44 billion by 2022. The report also notes that 1 in 3 women shopped thrift last year. James Reinhart, CEO of ThredUp says the modern consumer now has a choice between shopping traditional retail or trying new, innovative business models. The closet of the future is going to look very different from the closet of today

ThredUp reported 70 per cent of its users this year were first-time second-hand shoppers and further noted that the secondary retail market is set to grow 24 per cent quicker than the traditional retail market over the next four years. ThredUp is of the view that millennials' resolved their dilemma of giving up their desire to wear trendy fast fashion in favour social and environmental responsibility.

ThredUp's study found millennials were in the age demographics most likely to impulse buy a piece and then stop wearing it after around five times. The major shift in consumer spending — as seen in the report — is that 25 per cent of consumers are consciously planning to spend less at department stores and malls.

This dismal revelation is a worrying factor for fast fashion retailers such as H&M which revealed last week that it is already sitting on $4.3 billion of dead inventory.

ThredUp further reports that 66 per cent of consumers are instead using thrift as a way to buy higher-end brands they would not buy for full price. While off-price retailers such as TJ Maxx and Nordstrom Rack traditionally occupied this space, it appears that consumers have lost interest due to the relatively slow pace of regular retail deliveries.

The second-hand market, on the other hand, has seen a consistent growth in inventory. ThredUp reports that last year it recycled 3,40,000 fast fashion items from H&M, Zara and others. It noted that brands with the best return on investment include Frye, Lululemon and Helmut Lang. Brands that do not do well in the resale market, include Giorgio Armani, Juicy Couture and Mango.