India recommerce market to reach 5.91 billion dollars by 2025: Report

The "India Recommerce Market Intelligence Databook - 60+ KPIs, Market Size, Share & Forecast by Channel, Category & Consumer Segment - Q2 2025 Update" report by ResearchAndMarkets.com highlights the significant growth of India's recommerce market, with a particular focus on its implications for fashion retail.

The overall recommerce market is projected to reach 5.91 billion dollars by 2025, growing at an annual rate of 11.7 percent, and is expected to expand further to 8.61 billion dollars by 2029. This robust growth is largely fuelled by increasing platform expansion, original equipment manufacturer (OEM) trade-in programs, and a broader embrace of circular retail models.

The fashion recommerce segment is experiencing substantial growth, driven by various factors. Platforms like Kiabza, Ziniosa, and Myntra's resale pilots are leading the charge, while the market for pre-owned luxury items is expanding through specialised platforms such as Confidential Couture. The rise of social commerce, particularly Instagram-led selling and Meesho's consumer-to-consumer (C2C) expansion, is also playing a pivotal role in making resale accessible to a wider, mass-market audience.

This surge in fashion recommerce is largely attributed to Generation Z's preference for affordability, coupled with a growing demand for unique and budget-friendly fashion items, especially among shoppers in Tier 1 and Tier 2 cities. Meesho, for instance, is actively integrating pre-owned items to diversify its seller offerings. The report anticipates further growth through curation, styling support, and "resale-as-a-service" models, as well as strategic partnerships between influencers and resale startups to facilitate the entry of mid-market brands into organised resale.

Beyond online platforms, brick-and-mortar retailers are increasingly embedding recommerce into their operations. While initially more prominent in electronics with in-store trade-in services, fashion retailers like Pantaloons and Lifestyle have begun piloting in-store take-back schemes for clothing. This integration is driven by the need to manage reverse logistics, comply with extended producer responsibility (EPR) rules, and leverage recommerce as a tool for customer loyalty and boosting store footfall. As such, recommerce is expected to become a key component of retailers' strategies for ESG (Environmental, Social, and Governance) compliance.

The market is also seeing a shift towards verticalised recommerce platforms. While platforms like Cashify dominate electronics resale, the fashion segment is witnessing the emergence of specialised players. Investors are increasingly favouring platforms that offer full-stack control over the supply chain, refurbishment, and resale margins. Furthermore, the adoption of Buy Now, Pay Later (BNPL) and EMI options for used goods by platforms like Flipkart and Amazon Renewed, and potentially in fashion recommerce, is designed to increase transaction sizes. This indicates a future where category-specific players, particularly in fashion, will thrive by offering comprehensive services, including refurbishment and credit solutions.

Ultimately, the growth of fashion recommerce is also influenced by ESG mandates and e-waste policies in India, which are promoting circular economy practices. As regulations become stricter, brands are compelled to create their own resale and take-back programs. This trend suggests that brand-owned recommerce will likely scale in response to ESG reporting requirements, potentially leading to public-private partnerships in developing resale infrastructure for the fashion sector.