931 to 794 in Favor of Secondhand: 2nd Street Surpasses Uniqlo for the First Time. The Clash of Japanese Retail Giants Reveals the Future of Sustainable Fashion

Author: Katerina S.

931 to 794 in Favor of Secondhand: 2nd Street Surpasses Uniqlo for the First Time. The Clash of Japanese Retail Giants Reveals the Future of Sustainable Fashion-1

Japan’s largest secondhand chain, 2nd Street, has officially overtaken the national powerhouse Uniqlo in store count, boasting 931 locations against Uniqlo's 794. This is far more than a mere statistical anomaly; it signals a fundamental shift in the country’s consumption patterns.

Founded in 1996, 2nd Street remained a largely domestic name until just a decade ago. Today, it is a global force with an aggressive expansion strategy, aiming for 1,000 international locations by June 2025 and 1,500 by 2035. The brand is rapidly scaling in the United States, already operating 48 stores as of 2025 since its Los Angeles debut in 2018.

Their inventory spans everything from affordable mass-market labels to high-end luxury brands like Louis Vuitton and Chanel, alongside rare Japanese streetwear, vintage sneakers, and timepieces.

It is worth noting that while Uniqlo remains vastly larger in terms of revenue—generating over 1 trillion yen annually—resale has taken the lead in physical footprint and the frequency of consumer interaction.

The primary driver behind Japan's booming secondhand market is a harsh economic reality. For the first time in three decades, the nation is grappling with persistent inflation, where price hikes are outstripping wage growth. Under these pressures, price-sensitive younger shoppers are seeking stylish ways to dress on a budget. The traditional Japanese philosophy of "Mottainai"—the practice of avoiding waste and respecting objects—has long underpinned a culture of care, but it is only now evolving from a household habit into a mainstream movement. Generation Z and Millennials no longer view buying used goods as a social stigma; instead, it has become a badge of eco-consciousness and style. Consequently, resale has shed its "budget" image to become a rational consumption strategy for the middle class.

The secondhand market is expanding globally. According to reports from GlobalData and ThredUp, the resale sector is expected to account for 10–12% of the global apparel market by 2027–2028. Japan, however, already holds a unique position within this trend.

First, there is the sheer scale of the nation's luxury heritage. Following the economic boom of the 1980s, when the country imported European luxury brands in bulk, Japan now possesses a massive volume of high-end goods in circulation.

Second, the Japanese tradition of meticulous garment care ensures that pre-owned items are often in near-mint condition, which is particularly vital for the luxury segment. As a result, the Japanese market is saturated with authentic high-end products showing minimal signs of wear.

The third advantage is government support. Unlike many nations where resale grows organically, Japan integrates it into state policy. Since 1991, the government has consistently promoted a circular economy, folding resale into its national strategy rather than treating it as a fringe model. The Ministry of Economy, Trade and Industry (METI) issues guidelines for upcycling and sustainable fashion, supports e-commerce, simplifies export procedures, and leverages the "Cool Japan" program to export vintage culture. National initiatives for waste reduction and the goal of carbon neutrality by 2050 provide a favorable regulatory backdrop. Consequently, the Japanese secondhand market was valued at $69.32 billion in 2025 and continues to grow at double-digit rates, with projections reaching 4.6 trillion by 2030.

This rapid market growth does have a downside. As sales volumes climb, the prevalence of counterfeits inevitably rises. Japan enforces the strict Secondhand Goods Business Act (Kobutsusho), which requires dealers to be licensed and maintain meticulous records. However, the rise of online platforms like Mercari and Yahoo Auctions, combined with social media exports, has led to an influx of luxury replicas. While platforms are implementing AI verification and hiring specialists, the issue of fakes—particularly for brands like Herm

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Sources

  • Fastretailing.com

  • 2nd street сайт

  • Bloomberg.com

  • mmrstatistics.com

  • futuremarketinsights.com

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