Secondhand clothing, once primarily a way to save a few bucks, has been recast as a hot commodity in the fashion world, particularly among Hollywood's elite and other trend-setters across Southern California. This shift from budget-friendly to high-fashion status symbol has largely been driven by California-based companies, which have leveraged technology to turn casual thrifting into a cutting-edge industry.
The secondhand clothing market has seen remarkable growth, expanding by 20% to more than $240 billion over the past five years, according to McKinsey & Co.’s State of Fashion report. Companies like San Francisco’s RealReal, Redwood City’s Poshmark, Oakland’s ThredUp, and San José’s EBay have spearheaded this expansion, applying Silicon Valley innovation to streamline how people list, find, and receive used goods. These online platforms are constantly upgrading, offering features like livestream shopping and AI-powered search to make the experience faster and more engaging.
Rati Sahi Levesque, founder of RealReal, noted that “Resale itself reflects something very Californian: taking an existing behavior and using technology to fundamentally change its scale and possibilities.” This approach has built the infrastructure of trust, logistics, data, and technology to make secondhand shopping a mainstream activity for millions. Southern California consumers' enthusiasm for thrifted, recycled, and repurposed attire also helped L.A.’s Reformation grow from a vintage boutique into a billion-dollar company following its recent initial public offering.
The appeal for online thrifters is multifaceted: they save money, contribute to reducing waste, and can sidestep trends dictated by the industry. Many are also drawn to the “dopamine hit” of finding rare, unique items at a good price, as USC student Julia Ho described after tracking down a specific 1990s Gucci watch on EBay. This new wave of online shoppers is often willing to pay luxury prices for used pieces, sometimes even more than for new runway trends.
Celebrities have also embraced the movement, with figures like Joaquin Phoenix, Jennifer Aniston, Laura Dern, and Jason Momoa seen recycling clothes. Sustainability has become a prominent theme on the red carpet, highlighted by actress Odessa A’zion, who garnered best-dressed accolades for wearing a 1996 Jean Paul Gaultier suit to the Emmy Awards this month. This shift is further fueled by a vibrant social media ecosystem where influencers, including L.A.-based Emma Chamberlain, gain followings through viral thrift store hauls and by transforming secondhand finds into trendy items.
The used fashion boom, largely powered by tech developed within a 50-mile radius in the Bay Area, has been years in the making. Trailblazers like Craigslist and EBay set the stage for online listings, with newer fashion specialists adding layers of security and convenience for buyers and sellers. The fashion industry itself, with its limited-edition drops from brands like Nike and Supreme, has inadvertently fueled resale, as many sought-after items become exclusively available on secondhand sites at elevated prices. The stigma once associated with buying used fashion has largely dissipated, with some shoppers even running mini resale businesses as certain luxury brands appreciate in value.
The COVID-19 pandemic further accelerated the trend, as many sought to clear out closets and earn extra cash, turning reselling into a side hustle or even a full-time job. James Reinhart, CEO of ThredUp, founded the company in 2009 with the goal of making secondhand fashion easy. He observed that what was once seen as “old, dusty clothes” requiring “a level of coercion” has completely transformed. Today, he notes, “Now when generations are coming of age, there’s no stigma, there’s nothing odd about shopping at a thrift store or shopping secondhand... If anything, it’s the other way, which is it’s the cool thing that kids want to do.”
While the secondhand market continues to outpace traditional retail, growing at about 12% annually, the California companies at the forefront face their own challenges. Anita Balchandani, a senior partner at McKinsey, describes the resale sector as still in its “gangly teenager” phase, citing tough economic models, operational complexities, and low rates of return. Both RealReal and ThredUp have seen significant drops in their share prices this year following investor disappointment.
To navigate these hurdles and boost profit margins, companies are increasingly turning to artificial intelligence. ThredUp uses AI to sort millions of clothing items, speeding up warehouse operations and cutting costs. RealReal introduced MyCloset, an AI feature allowing users to track the value of their wardrobe. Poshmark partnered with Venice-based AI shopping assistant platform Silvr in June to make its vast inventory searchable for outfit ideas. These companies are betting that as a new generation of “resale natives” comes of age—a generation that knows no world other than one where buying and selling secondhand is normal—an even larger share of their wallets will go to used fashion.
