More brands are taking part in the resale segment of the fashion industry then ever before. According to Statista “In 2021, the global market value of second hand and resale apparel was estimated to be worth $96 billion U.S dollars”.
The Resale fashion market is expected to grow as consumers continue to tighten their belts whilst seeking ways to save money. Between 2023 & 2026 the resale market is expected to increase by 52% thanks to changing consumer habits and the number of emerging resale players in the industry.
RESALE MARKET DRIVERS
eBay, is an online marketplace that connects millions of buyers and sellers in more than 190 markets around the world. In the UK eBay is the king of the resale market, with 60% of the nation’s internet user visiting the online site in the last month. With the pre-owned clothing market shifting from charity shops and thrifting to online retail and resale platforms, eBay provides consumers personalised content, offers whilst shopping, and brings buyers and sellers together. eBay creates value for sellers and buyers using innovative technology to bridge the gap between marketing, distribution and networking gaps that ultimately drive cost effectiveness.
Another resale market driver is Depop, a London based fashion marketplace app targeting millennials and Gen Z shoppers. In 2021, Depop was bought by Etsy, the global marketplace for unique and creative goods, Depop still operates as a standalone company. The heart of the business is around creativity. Depop is home to over 30 million stylists, designers, artists, collectors, vintage sellers, sneakerheads and everyone else. Depop is also helping slow down fashion consumption. The clear vision of slowing consumption down is to reuse what already exists, by replacing brand new purchases with second hand ones.
From studies by the New Textiles economy, they found that "On average Depop users estimate that they wear an item of a total of 26 times before it's discarded". This is significantly more than non-Depop users, where studies estimate that some garments are discarded after just 7-10 wears. When clearing out wardrobes millennials and Gen Z have a clear preference for extending the life of a garment. While no seller likes to pay fees, they are integral to online selling. Depop for example charges its sellers 10% of each sale.
Based in Lithuania, Vinted is an online marketplace specialising in selling new or second-hand items, mainly clothing and accessories. Since 2008 Vinted has seen rapid growth, operating in 15 different countries, and connecting over 21 million users. Vinted is much more transactional than Depop. It incorporates fewer categories and focuses more on buyer experience, allowing users to make offers faster. Vinted is better suited for casual sellers who want to clear their inventory fast. Vinted sellers don’t pay any fees, posting and selling using the platform is completely free as the buyer pays the fees associated with the sale.
These three companies have shaped the resale world, and it's likely we will see them continue to see them grow. There are many different platforms for different consumers depending on age, wants and needs that they are searching for.
RESALE IN MASS MARKET BRANDS
Mass market fashion brands are listening to their consumers and are now venturing into the world of resale too. Many brands are now becoming more committed to circularity and want to help their customers extend the useful life of their products. In November 2022, Zara launched “Zara Pre-owned”, a very straightforward approach to resale for their customers to be a part of. This initiative allows customers to repair, resell, or donate used garments. Looking mainly into the resell aspect of this concept, Zara have set up a platform to resell Zara garments that the customer no longer needs or wants, and they can also buy from other Zara customers. With an easy step by step guide for customers to follow to resell, this is an amazing and long overdue step in the right direction for the high street brand.
ASOS have taken a different approach with ASOS_MARKETPLACE. ASOS marketplace launched in 2010, offering customers over 800 vintage boutiques to buy from. ASOS is aiming to attract customers who are early adopters who are looking for something authentic they can’t find elsewhere.
Levi’s SecondHand is another innovative venture. Along with cutting edge marketing, Levi’s “clean out your closet, trade in your denim” concept is a great opportunity for consumers to feel a part of a change and movement in the fashion industry. Levi’s state “If everybody bought one used item this year, instead of buying new it would save £449 million pounds of waste”. To make a more sustainable future, Levi’s are providing their customers the option to donate their old denim for a gift card worth the value of the item traded in. Only offering this in U.S stores now is just the first step in the right direction for this denim brand. To date Levi’s customers have reduced CO2 emissions by 57% from buying used instead of new.
Absolut vodka have also delved into the fashion resell market with their new campaign #BORNTOMIX. The Absolut swap shop allows people to shop pre-loved clothes, offering a diverse range of garments that will transcend trends, eras, and sizing. They ensure us that there is something for everyone. Consumers can exchange items at the event whilst sipping on Absolut cocktails which are also on offer. Industry giants such as Harry Lambert and Nyome Nicholas-Williams will also be at this event offering style advice and mixing people’s styles and cocktails all at once. This event will take place in London on Thursday 9th of February.
LUXURY RESALE
I’ve talked about the rental brands that I personally love wearing,but they keep getting better.
Vestiaire Collective has one of the largest sections of pre-owned goods. They post thousands of new listings weekly on their website. Vestiaire Collective guarantee authenticity for their customers with their vigorous verification process customer know they can trust. An amazing feature that vestiaire offer to their customers is an email alert, letting them know about a particular item that are looking for is listed.
By Rotation also offer pre-loved pieces. This function is recent and was introduced to encourage a wide audience to shop more sustainably.
HURR have also branched out from recognising how easy it is to fall in love with a dress or bag that their customers have rented, and they then want to keep them forever. Renting is an amazing concept for customers to try before they invest in a timeless piece. Customers can now send a seller an offer to buy an item, who will then have 48 hours to accept or decline.
With more than 25 million members The RealReal is the world’s largest online marketplace for authenticated luxury resale. They authentication process is diligent which provides customers with a reliable platform and items. Consumers can buy and sell their luxury items including women’s and men’s fashion as well as fine jewellery, watches, art and homeware.
Other brands I want to mention are Cocoon Club who have launched Cocoon refresh, allowing customers to sell their pre-loved luxury handbags and receive payment in the form of cash or store credit towards membership with their site.
Reselfridges, is a permanent resale platform which is a part of its ambitious sustainability initiative, Project Earth. Customers again can buy or sell in exchange for credit to use online or in store. A sustainable way to update or declutter your wardrobe and home.
The luxury closet, BAGISTA and Rewind Vintage are further examples of companies in the resell fashion industry. All these brands and business concepts are allowing a more sustainable and innovative way for consumers to shop.
FORECASTED GROWTH OF THE RESALE MARKET AND STRATGY FOR SUCCESS
Growth for the resale market is expected to slow gradually like all markets as they become more established. Europe will lead the growth for resale because of its growing economy and the high presence of online resale platforms. The Chinese resale market will also rapidly grow because of its huge hunger for luxury fashion and the uniqueness of the resell market.
So, how can brands become successful in the resell market? Firstly, affordability, investment pieces and unique pieces are at the heart of resell, which will drive consumers to that product.This should be marketed correctly. Another strategy that businesses should investigate is inclusivity, as brands that offer a wider size range including petite, tall and plus size is opening to further consumers. Never cut consumer types out where possible.
MARKET BARRIERS
The clear market barriers for the fashion industry are inflation and resell will feel this to. Like businesses consumers are living in a recession and are starting to not spend on non-essential items which includes clothing and footwear. Consumers may also add to excess supply in the market as they try selling clothes to make money on resell sites such as vinted
and Depop.
Also, the online factor, customers can not touch or try on these products with some of these resell business’s and ultimately may be left with an item which may not fit. Customers also will consider the quality of these items and if it doesn’t live up to their expectations rates of returns may rise for some of these business’s.
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