Generation Z Consumer Online Fashion Resale Participation

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1		Chuanlan Liu	--	7067	2023-05-26 17:23:41	\|
2	revise section 2 contents and format	Alfred Zheng	-4334 word(s)	2733	2023-05-29 03:24:04	\|

This entry is adapted from the peer-reviewed paper 10.3390/su15108213

The fashion industry has recently embraced a circular economy due to the increased consumer awareness of environmental issues, especially among younger generations. However, it is unclear if younger consumers, especially Generation Z, are willing to consistently engage in sustainable consumption patterns, such as buying and selling pre-owned fashion products through online resale platforms.

generation Z consumer fashion resale practice perceived value continuance intention

1. Introduction

The fashion industry is positively associated with creativity, the evolution of trends, and innovation. However, it is also one of the largest contributors to environmental pollution and waste due in large part to fast fashion ^[1]. Fast fashion promotes over-consumption through the rapid production of trendy clothing, which in turn generates immense waste. Consequently, in response to the significant environmental issues caused by fast fashion, there is increasing interest in understanding and promoting sustainable practice approaches by both industry professionals and fashion scholars.

The recent increase in consumer awareness of environmental issues caused by the fashion industry, especially among younger generations ^[2], has led the fashion industry to embrace a circular economy. One of the essential components of the circular economy in fashion is resale, which significantly contributes to sustainability by extending the lifespan of products and reducing fashion waste. Fashion online resale refers to the process of buying and selling pre-owned fashion items over the Internet. This phenomenon has gained significant popularity in recent years, particularly among younger consumers who are interested in sustainability and fashion affordability. Fashion resale not only reduces waste and supports a sustainable circular economy, but also mitigates consumers’ concerns about environmental issues and provides them with unique and affordable fashion options ^[3]. Furthermore, research shows that consumers who embrace resale are more likely to engage in other sustainable consumption practices, such as repurposing or repairing clothing ^[4]. Zhang et al. ^[5] found that consumers who were aware of the negative impact of unsustainable fashion practices were less likely to engage in fast fashion. Additionally, those same consumers were equally likely to participate in sustainable circular practices such as buying and selling pre-owned clothing, or fashion clothing resale (e.g., vintage or second-hand) ^[1].

Although the impact of the fashion industry on the environment has become increasingly notorious, older generations remain less likely to engage in sustainable fashion practices. Kapferer and Michaut-Denizeau ^[2] found that younger generation consumers were more likely to be interested in sustainability in fashion consumption compared to Boomers and Generation Xers. As a fast-growing number of Generation Zenter the workplace, they are changing the consumer landscape and shaping the way of business since this first generation of true digital natives has become a potent influence on consumers of all ages and incomes ^[6]^[7]. Specifically, technology and online marketplaces are driving the growth of the second market ^[8], this group of digitally native consumers plays a critical role in sustaining and developing the essential component of the circular economy in the online fashion resale industry. Studies have indicated that this group of consumers is savvy and pursues different values of products and services compared to other generations ^[6]^[7]. Even though Generation Z consumers are found caring about social and environmental issues caused by the fashion industry, to what degree they are willing to switch to responsible and sustainable products or consumption patterns needs to be further examined ^[9]. In addition, research on understanding this powerful group of consumers’ perceived value regarding clothing consumption practices is crucial for promoting sustainability in the fashion industry. Even though buying and selling pre-owned fashion products through online resale platforms are increasingly popular among Generation Z consumers, it is not clear if they are willing to continue participating in such a sustainable consumption pattern. Research has examined and identified key motivations that drive consumers to participate in fashion online including financial gain, variety, uniqueness, and access to high-end fashion items at a lower cost ^[10]; however, how these motives influence Generation Z consumers’ continuance intention of online fashion resale practice has not been examined. The initial adoption of the sustainable consumption pattern does not guarantee continued pre-owned fashion clothing consumption, as discontinuance may occur at any stage of adoption due to unsatisfactory trial outcomes or usage experiences ^[11]. Indeed, initial adoption is only the first step; the success of sustaining this circular fashion clothing consumption model depends more heavily on the continued participation in online resale practices through buying and selling an increasingly wide range of pre-owned fashion clothing products than initial adoption ^[12]^[13].

Personal values and beliefs play a crucial role in shaping individual consumption preferences ^[14]. Studies have found that an individual’s pro-environmental beliefs play a crucial role in determining their behavior towards the environment including the adoption of sustainable consumption patterns ^[15]. However, the degree to which an individual’s pro-environmental beliefs influence their commitment to maintaining adopted sustainable consumption patterns remains unclear. In addition, a significant body of research exists exploring the role of perceived value in shaping consumer decision making and consumption patterns ^[16]^[17]^[18]^[19]. For instance, Hur et al. ^[19] found that perceived social, emotional, and functional values have a significant positive effect on customer satisfaction with respect to green innovation. Research has also shown that perceived value can have moderating effects on a range of consumer behaviors. Nonetheless, the extent to which consumer perceived value influences individual beliefs and behaviors within the context of resale market places remains unexamined.

2. Generation Z Consumer Online Fashion Resale Participation and Continuance Intention

2.1. Environmental Impact of the Fashion Industry and Sustainable Consumption

The fashion industry has long been associated with substantial environmental concerns, such as pollution, waste, and depletion of natural resources ^[1]^[20]. Recent studies have highlighted the magnitude of these issues, with the production and disposal of textiles contributing to climate change, water scarcity, and biodiversity loss ^[20]^[21]^[22]. Additionally, synthetic textile production relies on the use of fossil fuels, which contribute to climate change through greenhouse gas emissions ^[23]. Furthermore, these environmental issues are intensified by the transportation and disposal of fashion waste ^[22].

As consumers gradually become more aware of the environmental and societal consequences of their clothing choices, sustainable fashion consumption has grown in prominence ^[24]. Sustainability has become a major focus of the industry in the past decade. Meanwhile, consumers are gradually shifting away from a throwaway culture and embracing sustainable consumption ^[2]. Generation Z (Generation Z), who have recently emerged as major consumers, are embracing eco-friendly and ethical consumption behaviors. Several market surveys and empirical studies have verified that worldwide, Generation Z is the most sustainable generation to date with a higher willingness to pay a higher price for purchasing products that are more environmentally friendly, long lasting, and ethical ^[15]^[16]^[17]. In addition, the trend of minimalist fashion, perusing “less is more,” has been embraced by Generation Z. Notable motivators of sustainable fashion consumption include personal values, awareness of environmental issues, and social influences ^[25].

Sustainable fashion consumption patterns encompass a range of practices including renting, swapping, reusing, recycling, and resale. Among these sustainable consumption patterns, sharing economy-based patterns such as renting, swapping, and resale is growing fast. In particular, resale, a form of sharing economy-based sustainable consumption, has also been recognized as a fundamental component for advancing a circular economy in the fashion industry ^[26]. In recent years, fashion resale has been gradually accepted by consumers as a trendy and sustainable activity. Fashion clothing and accessories exchanged in resale are all pre-owned, reducing the consumption needs for products made with new materials. Fashion resale practices also maximize the usage of clothing and accessory items, extending the lifespan, and reducing the impact of products that were discarded after limited use. The resale idea enables consumers to have access to high-end fashion brands and products at a low cost. Fashion resale makes it possible for consumers to obtain special fashion products that would not be accessible, otherwise achieving more variety in fashion clothing and accessory choices ^[27].

2.2. Generation Z Consumers

Gen-Z consumers refer to individuals born between 1997 and 2012. Generation Z has been characterized by their social and environmental consciousness, technological savviness, desire for uniqueness and personalization, being practically value driven, and being highly diversity and inclusivity oriented ^[7]^[28]. As consumers, the Generation Z cohort values authenticity, transparency, and affordability in their interactions with brands ^[7]^[29]. Research suggests that Generation Z consumers have a significant influence on family spending decisions and are more likely to shop online than previous generations ^[7]. They are highly influenced by social media and influencer marketing and prioritize sustainability and affordability when making purchasing decisions ^[7].

Regarding fashion consumption, recent research has demonstrated that Generation Z consumers are interested in sustainable fashion and are more likely to embrace sharing economy in fashion. For instance, a survey conducted by ThredUp found that 64% of Generation Z consumers have purchased second-hand fashion items and 73% of them are willing to pay more for sustainable fashion ^[30]. However, this cohort of consumers also prioritizes individuality and self-expression in their fashion choices. Given their characteristics of being practically value oriented, it is common for Generation Z consumers to purchase from fast fashion brands even if they consider sustainability to be an important factor in their purchasing decisions ^[5].

Generation Z consumers are considered a driving force to sustain and grow the fashion resale industry ^[31]. According to the newly released report by ThredUp, Generation Z and Millennials are the biggest consumers of second-hand fashion, accounting for nearly two-thirds of the incremental resale market as their purchasing power increases. Moreover, the global research market is expected to surge at three times the rate of the overall global apparel market up to 2027, mainly driven by Generation Z consumers ^[31].

This preference for resale among Generation Z consumers can be attributed to increased awareness of the environmental impact of fashion and their desire for unique and personalized fashion items, perceived benefits obtained from online resale practices, as well as their affinity for digital platforms that enable peer-to-peer transactions and impulse shopping ^[32]^[33]. Unsurprisingly, the impact of social media has been instrumental in promoting sustainable fashion consumption, as it enables consumers to exchange experiences and information regarding fashion resale platforms ^[34]^[35]^[36].

Overall, Generation Z consumers hold positive attitudes toward fashion resale, as a circular economy model in fashion. They are active in participating in online resale platforms including Depop, Poshmark, ThredUp, The RealReal, and other emerging resale platforms for special products. However, to what extent will the motivations driving their adoption of online fashion resale practices keep them from participating in these sustainable consumption practices has not been examined.

2.3. Perceived Benefits of Online Fashion Resale Participation

Online fashion resale platforms, such as Poshmark, ThredUp, Depop, and The RealReal have become increasingly popular in recent years, allowing consumers to buy and sell pre-owned clothing and accessories. Several studies have examined the perceived benefits of using these platforms for buying and selling fashion items ^[37]^[38]^[39]. One of the main perceived benefits of online fashion resale platforms is the economic benefit. Consumers can save money by purchasing pre-owned clothing items at a lower price than new ones ^[39]. In addition, sellers can generate income by selling their unwanted clothing items ^[40]. A study conducted by ThredUp found that 64% of U.S. consumers have bought or are willing to buy second-hand clothing to save money, and 54% have sold or are willing to sell their clothes to earn money ^[30]. Social benefits have also been identified as significant drivers for consumers to purchase from resale websites. The other benefits include experiential benefits and epistemic benefits. A study conducted by the Boston Consulting Group ^[41] found that the majority of fashion resale customers feel confident and more stylish when they wear pre-owned designer brand clothing and accessories. However, a recent study conducted by Ahn and Kwon ^[37] found that perceived functional, epistemic benefits, and economic benefits, but not social or experiential benefits, affect consumers’ intention to purchase from resale websites. Research exploring the drivers of Generation Z consumers’ attitudes and acceptance toward resale practices has identified several key factors, including perceived functional, experiential, and budgetary advantages, as well as fashion identity and expressive benefits ^[33]. Generation Z consumers are known to be price conscious and buying pre-owned fashion clothing allows them to save money on their purchases. Additionally, Generation Z consumers are interested in expressing their style and individuality through clothing styles. Buying pre-owned clothing can provide a unique and one-of-a-kind look that sets them apart from others. Fashion resale channels allow them to experiment with different brands, styles, and looks including vintage and retro styles with affordable prices. However, whether these identified benefits continue to shape Generation Z consumers’ sustainable consumption via online fashion resale marketplace has not been examined.

2.4. Pro-Environmental Beliefs

There is a significant amount of research on how pro-environmental beliefs affect consumer adoption of sustainable consumption patterns. Several studies have found that people who hold pro-environmental beliefs are more likely to adopt sustainable consumption patterns. For example, Ertz et al. ^[23] found that individuals who had stronger pro-environmental beliefs were more likely to engage in sustainable consumption practices such as recycling, energy conservation, and buying environmentally friendly products. Research has identified the role of pro-environmental beliefs in shaping consumers’ clothing consumption. For instance, Razzaq et al. ^[42] found that consumers’ pro-environmental beliefs are positively associated with sustainable fashion consumption. Lavuri et al. ^[43] found that consumers with stronger pro-environmental beliefs are more likely to have positive attitudes toward sustainable fashion consumption, including resale practices.

However, some research suggests that pro-environmental beliefs may be a poor predictor of actual sustainable consumption behavior ^[44]. Generation Z’s attitudes toward resale practices remain an area of ongoing research, with some studies suggesting a strong relationship between these beliefs and sustainable fashion consumption ^[43], while others report more nuanced or context-dependent relationships ^[45]. The interaction between pro-environmental beliefs, consumer value orientation, and sustainability also appears in the literature investigating younger generations’ fashion consumption and the desire to make a positive impact on the environment ^[43]. Overall, more research is needed to examine how pro-environmental beliefs affect individual consumers’ actual behavior, not intention, in the context of sustainable fashion consumption practices.

2.5. Consumer Perceived Value Moderating Effects on Sustainable Fashion Consumption

Consumer perceived value (CPV) is an important concept in marketing that has been extensively researched over the past few decades. It refers to the subjective evaluation of the benefits and costs associated with a particular product or service by the consumer. One of the early conceptualizations of consumer perceived value was proposed by Zeithaml ^[46], who defined it as “the consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given” (p. 14). This definition suggests that consumer perceived value is a function of the perceived benefits of a product or service relative to its price or other costs. Since then, a large body of research has been conducted to understand the factors that influence consumer perceived value. Some of the key factors that have been identified include product quality, brand reputation, convenience, customer service, and emotional appeal. Sweeney and Soutar ^[17] presented a four-dimensional model that illustrates how consumers perceive the values and benefits of products and services from emotional, social, quality/performance, and price/value aspects.

CPV has been identified as a key determinant of consumer behavior and is considered an important construct in marketing and consumer research. A considerable amount of research, e.g., ^[18]^[37]^[47] has been conducted on the moderating effects of CPV on various consumer behavior outcomes, such as purchase intentions, brand loyalty, and customer satisfaction. For instance, Hsin Chang and Wang ^[48] have shown that CPV can moderate the relationship between price and purchase intentions. Specifically, consumers who perceive a higher value in a product may be less sensitive to price changes and more likely to make a purchase even when prices are higher. This effect has been observed across a variety of products and services, including electronics, food, and apparel products. Research has examined the moderating effects of CPV on customer satisfaction. Studies have shown that CPV can buffer the negative effects of service failures on customer satisfaction. For example, Chang et al. ^[48] found that if a customer perceives high value in a product or service, they may be more likely to overlook minor service failures and maintain a positive attitude towards the brand. The concept of consumer perceived value has been applied to explain why consumers choose to participate in sustainable fashion consumption such as resale practices. Several studies have examined the relationship between the consumer-specific perceived value of second-hand products and online fashion resale consumption, e.g., ^[49]^[50]^[51]. However, how consumers, especially Generation Z consumers, and the perceived value of clothing consumption in general shapes their decisions and behavior in the context of online fashion resale participation has not been examined.

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