07 July, Mumbai 2025
The Indian recommerce market is likely to reach a value of $8.61 billion by 2029. According to a new report titled, ‘India Recommerce Market Intelligence Databook - 60+ KPIs, Market Size, Share & Forecast by Channel, Category & Consumer Segment - Q2 2025 Update, by ResearchAndMarkets.com, the market will grow at an annual rate of 11.7 per cent. This robust growth will be fueled by expanding platforms, original equipment manufacturer (OEM) trade-in programs, and a wider embrace of circular retail models.
A key driver of this surge is the fashion recommerce segment with platforms such as Kiabza, Ziniosa, and Myntra's resale pilots leading the online charge. The market for pre-owned luxury items is also flourishing, supported by specialized platforms like Confidential Couture. Furthermore, the rise of social commerce, including Instagram-led selling and Meesho's consumer-to-consumer (C2C) expansion, is crucial in making resale accessible to a broader, mass-market audience.
This boom in fashion recommerce is largely attributed to Generation Z's preference for affordability and a growing demand for unique, budget-friendly fashion items, particularly among consumers in Tier I and II cities. For example, Meesho is actively integrating pre-owned items to diversify its seller offerings. The report anticipates continued growth through innovative models like curation, styling support, ‘resale-as-a-service,’ and strategic partnerships between influencers and resale startups, which will help mid-market brands enter the organized resale space.
Beyond online channels, brick-and-mortar retailers are increasingly integrating recommerce into their operations. While initially more common in electronics with in-store trade-in services, fashion retailers like Pantaloons and Lifestyle have begun piloting in-store take-back schemes for clothing. The market is also witnessing a shift towards verticalized recommerce platforms. Investors are increasingly favoring companies that offer full-stack control over the supply chain, refurbishment, and resale margins. The adoption of Buy Now, Pay Later (BNPL) and EMI options for used goods, already seen with platforms like Flipkart and Amazon Renewed, is expected to extend to fashion recommerce, aiming to increase transaction sizes.
Ultimately, the growth of fashion recommerce is strongly influenced by ESG mandates and e-waste policies in India, which are actively promoting circular economy practices. Brands are increasingly compelled to establish their own resale and take-back programs.
