Drishti Arora
“Resale is here to stay” – James Reinhart, CEO of ThredUp
During the lockdown, the second-hand fashion industry has witnessed a boom with time, money, and value all contributing to its post-pandemic rise. While second-hand products were formerly mostly exchanged at flea markets and thrift stores, much of the dealing has now moved to internet sites. Resale methods were originated by the fashion market, but non-fashion companies are also following suit. IKEA, for example, has inaugurated a take-back scheme as well as an experimental second-hand pop-up store. Purchasing used goods is no longer disapproved of; in fact, recent studies reveal that young people, in fact, are pleased to do so. A variety of factors have impacted this phenomenon. The preponderance of them are determined by two key causes which are far less expensive and much more environmentally friendly.
In 2019, fashion resale surged 25 times rate than the average of the fashion retail sector in 2019. Retailers, understandably, would like to become a part of this wonderful emerging market area. However, second-hand isn’t only about profit possibilities of reselling used goods. Businesses may introduce additional value for their customers – and the world – by developing circular economic models on second-hand items.
Preowned commodities are readily available for a quarter of the price of new products. This is not to suggest that all second-hand models are affordable. Luxury fashion resale has surged in terms of popularity in recent years. Consignment firms like the RealReal are collaborating with brands like Burberry and Gucci to buy and resell their pre-owned merchandise. Consumers can sell second-hand luxury products to other contemporaries on platforms like Vestiaire Collective and even thrift stories operating on social media platforms (most commonly on Instagram). Private sellers, like consumers, are typically driven by financial considerations – the opportunity to make a little additional cash while emptying and revamping their closet. Giving preowned or worn out clothing items a second or third life benefits consumers in much more aspects than one. Enhancing a product’s life span serves economic, financial and environmental benefits as well, as it minimizes the country’s economic use of environmental assets and prevents junk creation. Nowadays, consumers are looking for and are inclined towards more sustainable options which are available and trendy in market as they are becoming more understanding and conscious of how destructive fast fashion is and the consequences which follow suit. This phenomenon is not confined to the fashion world; this can be seen in other market segments too though, such as electronic products and furniture.
With automation at its apex, funds to be saved, and value suddenly emerging much more of a concern, the rise in second-hand purchasing may make perfect sense. However many of us who have considered the outbreak to be economically efficient, limiting our spending in other aspects of life, also have yearning for quality and value. “Even though things were terrible, many of our customers have seen a few of their expenditures decrease,” Davis said. “During early March, there was very little to no travel; no concerts, sports events, cinemas, or stage shows. For many individuals, this effectively relieves up a large amount of spending power. In fact, this could save up enough money for others to buy a certain second-hand luxury product they could not really afford previously.”
When physical stores got closed down in March and shoppers were instructed to remain at home, buyers took advantage of the increased opportunity to check for exciting things on social media. However, with reduced finances, plenty of us have turned to our wardrobes for extra cash, following up on a long-overdue deep cleaning by trading unnecessary items online. Besides the fact that we now have a few extended time on our hands, there seems to be an element of escapism sky rocketing second-hand purchases. Increased activity on second-hand websites has really been ascribed towards being a point of interest amid lockdown, potentially implying that, unintentionally or not, limiting down has encouraged everyone to behave more sustainably and contemplate our decisions rather than making impulsive buying.
79 % of consumers aim to limit their clothes spending in the next 12 months, indicating that the shift in thinking toward more studied investments is tied to budgetary restrictions. Consumers are increasingly valuing quality above quantity, which has increased our appreciation of affordability. Apparel resale, specifically luxury consignment platforms, provide such a means to have well merchandise, with quality management assessments to verify you’re spending the correct price but not a penny higher.
So when pandemic struck, numerous experts anticipated that, for safety considerations, people will stop buying old stuff. The statistics, on the other hand, specify the complete reverse. During the quarantine measures put in place in France to tackle the Covid-19 outbreak throughout March and May, Vinted, an online platform for second-hand garments including over 12.5 million members in France, expanded rapidly. According to recent consumer research, individuals found the time to tidy out their closet multiple times as often as they did before the crisis. Social media fashion resale is expected to increase by 69 percent in 2021 compared to 2019, as shoppers strive to clear their residences and look for deals online, while the overall retail industry is expected to fall by 15%.
Numerous retail chains which have commenced to partake in second-hand revenue models have established prototypes and spin-off solutions that keep the company’s major trade independent while allowing and giving themselves the time to learn to deal with such a non-traditional business model. This can be evidently seen as H&M and Zalando have each participated in this uprise of trend by launching their own sites for selling quality-controlled used clothing – H&M’s Sellpy and Zalando’s Zirkle. Implementing a continuous loop in-store permits customers to sell products they no longer wear and increase the product’s lifecycle by an average of nine months of active use, lowering emissions, pollution, and water impacts by 20-30percent of total each, as per verified data provided by Vestiaire Collective. We really wanted to empower consumers to become more sustainable and give a second or third life to their own items,” stated Fanny Moizant, Vestiaire Collective’s co-founder. “It’s about buying better, investing in quality, reselling, and making sure we don’t create more waste.”
The requirement to respond to changing customer expectations, increased environmental efficiency, possibility of strengthening customer ties, an incentive to develop higher-quality items, regulations that are pre-empted are some of the most compelling reasons for businesses to participate in resale.
Companies are expected to modify their business models as planetary catastrophes such as climate change, pollution, and biodiversity loss move to the top of customers’ priorities. Despite the extra emissions caused by the logistics of distributing used products to new owners, resale models outperform classic “take, make, trash” strategies on most environmental measures.
Catering to changing consumer preferences with more sustainable offerings has the potential to both attract new customers and strengthen client loyalty. Resale business strategies might, for instance, establish a “lock-in” pattern, in which certain companies provide consumers coupons which could only be used in-store in return for old merchandise. As a result, the customers obtains fresh value from used commodities, and the revenue loops within the retailer’s business climate remains closed, resulting in increasing revenue for the distributor.
The pandemic has prompted customers to examine themselves and their purchasing behaviors, in addition to improvements in things that maintain their value. From both the Kardashian-Jenner family’s launch of resale clothes site “Kardashian Kloset” to Oxfam’s massive #SecondHandSeptember campaign, fronted by Michaela Coel, plenty of famous people have supported pre-loved, boosting resale to trend prominence. During the quarantine, more individuals than ever made a significant contribution to the sustainable society by cleaning, reselling, reducing defects, and making better use of the funds they already have, even if not everybody is motivated by environmental concerns or perhaps even conscious of the positive impact of their actions on the planet.
Finally, resell models encourage businesses to create things that endure longer. Resale models require durable items as a prerequisite. The longer the lifetime of a commodity, the more likely it is to be sold to a new buyer. This new purpose has ramifications for product design: clothes must be made of robust fabrics to last longer, and equipment should be developed in a modular manner to allow reselling businesses to quickly repair and replace components. Concentrating on reselling architecture can so stimulate innovation and enhance quality of the product.
New anti-waste legislation in France has included Extended Producer Responsibility (EPR) plan for clothes, which requires enterprises generating or selling apparel in the country to pay a fee to finance the diagnosis and management of their commodities’ end-of-life. When low-quality, less lasting garments are utilized, the fee rises dramatically. The new anti-waste law is being hailed as a leading beacon of a fiscal reward/penalty system, with plans to expand it to other economic sectors in the near future. When La Redoute, a French clothing and home textiles company, discovered that half of their consumers sell or buy used goods, they quickly launched La Reboucle. Customers can purchase and sell used goods, including merchandise from several other businesses, on the online website. Sellers can choose whether they want to be paid in cash or receive discount vouchers worth 25% off. La Redoute hopes to seize the revenue that transfers on this digital platform and direct it towards their own website in this way. Since the apparel economy has grown so competitive, La Redoute plans to set itself apart by emphasizing on decor in order to attract more customers.
According to Forbes, the youth of today are boosting the market with a more ecologically responsible perspective to clothing. Gen-Z shoppers are moving to reselling with a more responsible and environmentally friendly buying experience, with 37% shopping secondhand compared to 27% for Millennials and 19% for Baby Boomers. New generations are pushing change by investing their money wherever their opinion is by purchasing pre-loved and sustainably sourced products, but also urging everyone to do the same.
It’s reasonable to assume that remarketing has played a crucial role in regaining the fashion industry’s lost long-term trust. And, with firms like FashionPhile, Vestiaire Collective, Rebag, and Stock X expected to grow in prominence, and this new market interest likely to last, it appears that reselling is the future. Perhaps the disease outbreak has yielded some positive results.
