Tools commonly used in the Clothing-Used (Retail) industry for day-to-day tasks and operations.

• Clothing racks
• Hangers
• Price tags
• Tagging guns
• Steamers
• Irons
• Clothespins
• Sorting bins
• Cleaning supplies (detergent, fabric softener, etc.)
• Scales (for weighing clothing items)
• Cash registers
• Credit card machines
• Security tags
• Surveillance cameras
• Mirrors
• Lighting fixtures
• Mannequins
• Display cases
• Shopping bags

Common products and services typical of NAICS Code 459510-13, illustrating the main business activities and contributions to the market.

• Vintage dresses
• Designer handbags
• Leather jackets
• Denim jeans
• Athletic wear
• Business attire
• Children's clothing
• Winter coats
• Formal wear
• Swimwear
• Accessories (hats, scarves, belts, etc.)
• Shoes (sneakers, boots, sandals, etc.)
• Maternity wear
• Plus-size clothing
• Halloween costumes
• Dancewear
• Uniforms
• Lingerie
• T-shirts

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

• OSHA Compliance: Clothing-Used (Retail) businesses must comply with OSHA regulations to ensure a safe and healthy workplace for employees. OSHA provides training, outreach, education, and assistance to businesses to ensure compliance.
• Retail Sales Tax Permit: Clothing-Used (Retail) businesses must obtain a retail sales tax permit to collect and remit sales tax on taxable items sold. The permit is issued by the state's department of revenue.
• Business License: Clothing-Used (Retail) businesses must obtain a business license to operate legally. The requirements vary by state and locality. The license is issued by the local government.
• Environmental Compliance: Clothing-Used (Retail) businesses must comply with environmental regulations to ensure proper disposal of hazardous waste and prevent pollution. The regulations are issued by the Environmental Protection Agency (EPA).
• Fair Labor Standards Act (FLSA) Compliance: Clothing-Used (Retail) businesses must comply with FLSA regulations to ensure fair wages, overtime pay, and child labor laws. The regulations are issued by the Department of Labor.

A concise historical narrative of NAICS Code 459510-13 covering global milestones and recent developments within the United States.

• The used clothing industry has been around for centuries, with evidence of secondhand clothing sales dating back to ancient times. However, the modern used clothing industry began to take shape in the late 19th century, with the rise of department stores and the emergence of a middle class. In the United States, the Salvation Army is credited with pioneering the modern used clothing industry in the early 20th century, with the opening of its first thrift store in 1897. The industry continued to grow throughout the 20th century, with the rise of vintage clothing in the 1960s and 1970s and the increasing popularity of sustainable fashion in recent years. In the United States, the used clothing industry has experienced significant growth in recent years, driven in part by the rise of online marketplaces such as ThredUp and Poshmark. According to a report by ThredUp, the online resale market is expected to reach $64 billion by 2024, up from $7 billion in 2019. The COVID-19 pandemic has also contributed to the growth of the industry, as consumers have become more price-conscious and environmentally aware. Despite this growth, the industry still faces challenges such as competition from fast fashion and concerns about the quality and safety of secondhand clothing.

The anticipated future trajectory of the NAICS 459510-13 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

• Growth Prediction: Growing

  The used clothing retail industry in the USA is expected to continue to grow in the coming years. The industry has been experiencing a surge in demand due to the increasing awareness of the environmental impact of fast fashion and the desire for unique and affordable clothing. The COVID-19 pandemic has also contributed to the growth of the industry as consumers have become more budget-conscious. The industry is expected to continue to grow as consumers become more environmentally conscious and seek out sustainable fashion options. However, the industry may face challenges from the rise of online resale platforms and the increasing competition from traditional retailers who are entering the used clothing market.

Recent groundbreaking advancements and milestones in the Clothing-Used (Retail) industry, reflecting notable innovations that have reshaped its landscape.

• Thredup: ThredUp is an online consignment and thrift store that allows consumers to buy and sell secondhand clothing. The company has been growing rapidly and has raised over $300 million in funding.
• Depop: Depop is a social shopping app that allows users to buy and sell secondhand clothing. The app has become popular among younger consumers and has been growing rapidly.
• The Realreal: The RealReal is an online luxury consignment store that allows consumers to buy and sell high-end clothing, accessories, and home goods. The company has been growing rapidly and has raised over $300 million in funding.
• Poshmark: Poshmark is an online marketplace that allows users to buy and sell secondhand clothing, shoes, and accessories. The company has been growing rapidly and has raised over $150 million in funding.
• Rent the Runway: Rent the Runway is an online service that allows consumers to rent designer clothing and accessories for a fraction of the retail price. The company has been growing rapidly and has raised over $190 million in funding.

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Clothing-Used (Retail) industry. It highlights the primary inputs that Clothing-Used (Retail) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Cleaning Supplies: Essential products such as detergents and fabric fresheners used to clean and maintain the quality of used clothing before resale.

Pricing Tags: Labels used to indicate the price of each clothing item, essential for transparent transactions and customer awareness.

Second-hand Clothing: Pre-owned garments that are sourced from individuals, providing a diverse range of styles and sizes for budget-conscious consumers.

Storage Bins: Containers used for organizing and storing unsorted or seasonal clothing items, ensuring efficient inventory management.

Equipment

Clothing Racks: Display fixtures that allow for organized presentation of clothing items, making it easier for customers to browse and select items.

Mannequins: Life-sized models used to display clothing in an appealing manner, helping customers visualize how garments will look when worn.

Point of Sale System: Technology used to process sales transactions, manage inventory, and track customer purchases efficiently.

Service

Alteration Services: Professional tailoring services that adjust the fit of used clothing, enhancing customer satisfaction by ensuring garments fit well.

Customer Service Training: Programs designed to enhance staff skills in providing excellent service, which is crucial for building customer loyalty and satisfaction.

Marketing Services: Promotional activities that help attract customers to the store, including social media advertising and local community events.

Explore a detailed compilation of the unique products and services offered by the Clothing-Used (Retail) industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the Clothing-Used (Retail) to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Clothing-Used (Retail) industry. It highlights the primary inputs that Clothing-Used (Retail) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Accessories: A selection of used accessories, including belts, hats, scarves, and bags, is available. These items can complement any outfit, allowing consumers to express their personal style while also being mindful of their budget.

Athletic Wear: A variety of used athletic clothing, such as workout tops, leggings, and shorts, is offered. These items are ideal for fitness enthusiasts looking for high-quality, budget-friendly options to enhance their workout wardrobe without compromising on style or performance.

Children's Used Clothing: A collection of pre-owned clothing for children, including shirts, pants, and outerwear, is available. These items are often in excellent condition and provide parents with cost-effective solutions for their growing kids, who frequently outgrow their clothes.

Costumes: A variety of second-hand costumes for parties, Halloween, or theatrical performances is available. These unique pieces allow customers to stand out at events while being cost-effective and sustainable by reusing previously worn outfits.

Formal Wear: This category features gently used formal clothing, such as tuxedos, evening gowns, and cocktail dresses. These items are perfect for special occasions, offering customers the opportunity to look elegant without the high price tag associated with new formal attire.

Men's Used Clothing: A diverse selection of pre-owned men's clothing, including shirts, pants, jackets, and suits, is available. These items are sourced from individuals looking to sell their gently worn apparel, providing budget-conscious consumers with stylish options for everyday wear or special occasions.

Outerwear: This category includes pre-owned jackets, coats, and other outer garments suitable for various weather conditions. Shoppers can find both functional and fashionable options that provide warmth and protection while being environmentally friendly by choosing second-hand items.

Vintage Clothing: This unique selection includes clothing items from past decades, appealing to fashion enthusiasts and collectors. Each piece tells a story and offers a distinctive style that cannot be found in contemporary retail, making it a popular choice for those seeking to express their individuality.

Women's Used Clothing: This category features a wide range of second-hand women's clothing, such as dresses, blouses, skirts, and outerwear. Each piece is carefully inspected and cleaned before being offered for sale, allowing shoppers to find fashionable and affordable attire that suits their personal style.

Service

Clothing Resale Services: This service allows individuals to sell their used clothing items for cash or store credit. By providing a platform for consumers to declutter their wardrobes, the service promotes sustainability and encourages the recycling of fashion.

A thorough examination of the Clothing-Used (Retail) industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

Economic Factors

Social Factors

Technological Factors

Legal Factors

Economical Factors

An in-depth look at the Clothing-Used (Retail) industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.

Value Chain Position

Category: Retailer
Value Stage: Final
Description: Clothing-Used (Retail) operates as a retailer in the consumer goods sector, focusing on the sale of second-hand clothing items directly to consumers. This industry emphasizes affordability and sustainability, catering to budget-conscious shoppers and environmentally aware consumers.

Upstream Industries

Downstream Industries

Primary Activities

Inbound Logistics: Receiving and handling processes involve sorting and inspecting incoming clothing donations or consignment items. Storage practices typically include organizing items by type and size, while quality control measures ensure that only clean, wearable items are displayed for sale. Challenges may include managing inventory turnover and ensuring a consistent supply of quality items, often addressed through community outreach and marketing efforts.

Operations: Core processes include sorting, cleaning, pricing, and displaying clothing items for sale. Quality management practices involve regular inspections to maintain high standards for the items offered. Industry-standard procedures include using tagging systems for pricing and inventory management, ensuring efficient operations and customer satisfaction.

Outbound Logistics: Distribution methods primarily involve in-store sales, with some retailers offering online shopping options. Quality preservation during delivery is crucial, especially for online orders, where items must be packaged securely to prevent damage. Common practices include using eco-friendly packaging materials to align with sustainability goals.

Marketing & Sales: Marketing approaches often include social media campaigns, community events, and partnerships with local organizations to promote sustainability. Customer relationship practices focus on building loyalty through rewards programs and personalized shopping experiences. Sales processes typically involve engaging customers through knowledgeable staff who can provide styling advice and product information.

Support Activities

Infrastructure: Management systems in the industry include point-of-sale systems that track sales and inventory levels. Organizational structures often consist of small teams focused on customer service and inventory management, facilitating a responsive retail environment. Planning systems are essential for scheduling sales events and managing seasonal inventory fluctuations.

Human Resource Management: Workforce requirements include staff trained in customer service and retail operations, with practices focusing on ongoing training in sustainability and product knowledge. Development approaches may involve workshops on effective sales techniques and community engagement strategies, enhancing employee skills and knowledge.

Technology Development: Key technologies include inventory management software that tracks sales and stock levels, as well as e-commerce platforms for online sales. Innovation practices focus on adopting new marketing strategies and customer engagement tools to enhance the shopping experience. Industry-standard systems often involve data analytics for understanding consumer preferences and trends.

Procurement: Sourcing strategies involve establishing relationships with local communities and organizations for clothing donations. Supplier relationship management is crucial for maintaining a steady flow of quality items, while purchasing practices emphasize sustainability and ethical sourcing.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through sales per square foot and inventory turnover rates. Common efficiency measures include tracking the time taken to process incoming items and the speed of sales transactions. Industry benchmarks are established based on average sales figures and inventory management practices.

Integration Efficiency: Coordination methods involve regular communication between staff and management to ensure alignment on inventory levels and sales strategies. Communication systems often include digital platforms for real-time updates on stock and customer feedback, enhancing responsiveness to market demands.

Resource Utilization: Resource management practices focus on optimizing space for displaying clothing and minimizing waste through recycling unsold items. Optimization approaches may involve using data analytics to forecast demand and adjust inventory accordingly, adhering to industry standards for sustainability.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include the unique selection of second-hand clothing, affordability, and the promotion of sustainable fashion practices. Critical success factors involve maintaining high-quality standards and effective community engagement to ensure a steady supply of inventory.

Competitive Position: Sources of competitive advantage include the ability to offer diverse and unique clothing options at lower prices compared to new retail. Industry positioning is influenced by local market trends and consumer preferences for sustainable shopping, impacting overall market dynamics.

Challenges & Opportunities: Current industry challenges include competition from fast fashion retailers and the need to maintain quality standards amidst fluctuating inventory. Future trends may involve increased consumer interest in sustainable practices, presenting opportunities for growth through expanded online sales and community partnerships.

A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the Clothing-Used (Retail) industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.

Strengths

Industry Infrastructure and Resources: The industry benefits from a well-established network of retail locations, including thrift stores and consignment shops, which are strategically positioned in urban and suburban areas. This strong infrastructure allows for efficient inventory turnover and accessibility for consumers seeking affordable clothing options.

Technological Capabilities: Technological advancements in inventory management systems and e-commerce platforms provide significant advantages. Many retailers are adopting online sales channels and utilizing data analytics to optimize inventory and enhance customer experience, reflecting a moderate level of innovation in the industry.

Market Position: The industry holds a strong position within the retail sector, catering to a growing consumer base that values sustainability and affordability. Brand recognition among established thrift store chains contributes to its competitive strength, although it faces challenges from fast fashion alternatives.

Financial Health: Financial performance across the industry is generally stable, with many retailers reporting consistent revenue growth driven by increasing consumer interest in second-hand clothing. However, fluctuations in inventory acquisition costs can impact profitability, necessitating careful financial management.

Supply Chain Advantages: The industry enjoys robust supply chain networks that facilitate the procurement of used clothing from various sources, including donations and individual sellers. Strong relationships with local communities enhance operational efficiency and ensure a steady flow of inventory.

Workforce Expertise: The labor force in this industry is often skilled in retail operations and customer service, with many employees having experience in merchandising and inventory management. This expertise contributes to high standards of customer interaction and operational efficiency.

Weaknesses

Structural Inefficiencies: Some retailers face structural inefficiencies due to outdated store layouts or inadequate inventory management practices, leading to increased operational costs. These inefficiencies can hinder competitiveness, particularly against more streamlined operations.

Cost Structures: The industry grapples with rising costs associated with logistics, labor, and compliance with health and safety regulations. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies.

Technology Gaps: While some retailers are technologically advanced, others lag in adopting new retail technologies. This gap can result in lower productivity and higher operational costs, impacting overall competitiveness in the market.

Resource Limitations: The industry is vulnerable to fluctuations in the availability of quality used clothing, particularly as consumer donation patterns change. These resource limitations can disrupt inventory levels and impact sales.

Regulatory Compliance Issues: Navigating the complex landscape of retail regulations poses challenges for many companies. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage.

Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Companies may face difficulties in gaining distribution agreements or meeting local regulatory requirements, limiting growth opportunities.

Opportunities

Market Growth Potential: There is significant potential for market growth driven by increasing consumer demand for sustainable and budget-friendly clothing options. The trend towards eco-conscious shopping presents opportunities for retailers to expand their offerings and capture new market segments.

Emerging Technologies: Advancements in e-commerce technologies, such as mobile shopping apps and online marketplaces, offer opportunities for enhancing sales channels and reaching a broader audience. These technologies can lead to increased efficiency and customer engagement.

Economic Trends: Favorable economic conditions, including rising awareness of sustainability and thriftiness among consumers, support growth in the used clothing market. As consumers prioritize value and environmental impact, demand for second-hand clothing is expected to rise.

Regulatory Changes: Potential regulatory changes aimed at promoting sustainability and reducing waste could benefit the industry. Retailers that adapt to these changes by emphasizing eco-friendly practices may gain a competitive edge.

Consumer Behavior Shifts: Shifts in consumer preferences towards thrift shopping and sustainable fashion create opportunities for growth. Retailers that align their product offerings with these trends can attract a broader customer base and enhance brand loyalty.

Threats

Competitive Pressures: Intense competition from both traditional retailers and online platforms poses a significant threat to market share. Companies must continuously innovate and differentiate their offerings to maintain a competitive edge in a crowded marketplace.

Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for used clothing. Companies must remain agile to adapt to these uncertainties and mitigate potential impacts on sales.

Regulatory Challenges: The potential for stricter regulations regarding retail operations and consumer protection can pose challenges for the industry. Companies must invest in compliance measures to avoid penalties and ensure operational integrity.

Technological Disruption: Emerging technologies in fast fashion and online retail could disrupt the market for used clothing. Companies need to monitor these trends closely and innovate to stay relevant.

Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Companies must adopt sustainable practices to meet consumer expectations and regulatory requirements.

SWOT Summary

Strategic Position: The industry currently enjoys a strong market position, bolstered by rising consumer interest in sustainability and affordability. However, challenges such as rising costs and competitive pressures necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and product lines, provided that companies can navigate the complexities of regulatory compliance and supply chain management.

Key Interactions

Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for sustainable and affordable clothing options. Key growth drivers include the rising popularity of thrift shopping, advancements in e-commerce technologies, and favorable economic conditions. Market expansion opportunities exist in both domestic and international markets, particularly as consumers seek out budget-friendly alternatives. However, challenges such as resource limitations and regulatory compliance must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.

Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and supply chain vulnerabilities. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and regulatory landscapes. Effective risk management strategies, including diversification of suppliers and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.

Strategic Recommendations

An exploration of how geographic and site-specific factors impact the operations of the Clothing-Used (Retail) industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.

Location: Urban areas with high population density, such as New York City, Los Angeles, and Chicago, provide ideal conditions for used clothing retailers due to the large customer base seeking affordable fashion options. These locations also benefit from foot traffic and accessibility, making it easier for consumers to visit stores. Conversely, rural areas may struggle due to lower population density and reduced demand for second-hand clothing, impacting sales and inventory turnover.

Topography: Flat urban landscapes are advantageous for clothing retailers as they facilitate easy access for customers and efficient logistics for receiving and displaying inventory. Locations with mixed-use developments allow retailers to attract diverse clientele, while hilly or uneven terrains may pose challenges for store accessibility and visibility, potentially deterring foot traffic and impacting sales.

Climate: Regions with temperate climates, such as the Pacific Northwest, allow for year-round operations without significant seasonal fluctuations affecting clothing sales. However, extreme weather conditions, like heavy snowfall or intense heat, can impact customer footfall and shopping habits, necessitating adaptive strategies such as online sales or seasonal promotions to maintain revenue during adverse weather periods.

Vegetation: Retailers must consider local vegetation and landscaping regulations, particularly in urban settings where green spaces may be mandated. Proper management of outdoor areas can enhance store appeal and customer experience. Additionally, the presence of local parks or community gardens can create a pleasant shopping environment, encouraging foot traffic and longer visits to retail locations.

Zoning and Land Use: Used clothing retailers typically operate under commercial zoning classifications that permit retail activities. Local zoning laws may dictate store size, signage, and operational hours, which can vary significantly between urban and suburban areas. Compliance with land use regulations is essential, as some municipalities may have specific requirements for second-hand goods sales, including permits or inspections to ensure quality and safety standards are met.

Infrastructure: Access to reliable transportation networks is crucial for clothing retailers, as they rely on efficient supply chains for inventory acquisition and distribution. Proximity to public transportation can enhance customer access, while adequate parking facilities are necessary for those who drive. Additionally, retailers require robust communication infrastructure to support e-commerce operations and customer engagement through digital platforms.

Cultural and Historical: The acceptance of used clothing retailers varies by community, influenced by cultural attitudes towards sustainability and thrift shopping. Urban areas with a strong emphasis on eco-consciousness often embrace these retailers, viewing them as part of a sustainable lifestyle. Historical factors, such as the presence of established thrift stores or consignment shops, can also shape community perceptions and acceptance, impacting the success of new entrants in the market.

A detailed overview of the Clothing-Used (Retail) industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Medium

Description: This industry focuses on the retail sale of second-hand clothing items, which are sourced from individuals looking to sell their pre-owned apparel. Stores in this sector typically engage in purchasing, sorting, cleaning, and reselling these items to consumers seeking affordable clothing options.

Market Stage: Growth. The industry is experiencing growth as consumers increasingly seek sustainable and budget-friendly clothing alternatives. This trend is supported by rising awareness of environmental issues and the economic benefits of purchasing used clothing.

Geographic Distribution: Regional. Clothing-used retailers are often found in urban and suburban areas where population density supports a steady flow of customers. Locations are strategically chosen to maximize foot traffic and accessibility.

Characteristics

Market Structure

Market Concentration: Fragmented. The market is characterized by a large number of small to medium-sized retailers, with few dominant players. This fragmentation allows for a variety of business models and niche markets to thrive.

Segments

Distribution Channels

Success Factors

Demand Analysis

Demand Drivers

Competitive Landscape

Entry Barriers

Business Models

Operating Environment