Fashion brands are resuming resale, after seeing a slew of players go big in the burgeoning “pre-loved” segment that’s putting green in clothing and cash registers.
Resale-as-a-Service (Raas) accomplishes several things for apparel and accessory manufacturers, primarily the continued profit from the items they originally produced and sold in other channels. In February, fashion news site Fashionista reported on the trend, opening up about how fashion house Oscar de la Renta looked at the third-party resale market and didn’t like what it saw.
The report said it was shocking “for Oscar de la Renta’s team to see how badly the brand was presented by third parties: the items were misidentified, there was a question of authenticity – all in all, it was not the same caliber as l. real shopping experience that the brand is proud to offer “. This led to the creation of the second-hand Encore platform in November. Logistics and payments managed by the Archive resale site, which is building resale platforms and experiences for brands.
Read more: Oscar de la Renta adds vintage items to resale offerings
“Since launching in February 2021, Archive has rapidly amassed major funding and customers,” the news site Modern Retail reported in January. “In total, Archive has raised nearly $ 10 million and its clients include brands such as Oscar De La Renta, The North Face and Dagne Dover. In exchange for an initial commission and a commission on additional resale sales, Archive creates sub-sites for these brands dedicated to resale. “
But the challenge, that coverage added, is drawing consumers away from established multi-brand retail markets, such as Depop, ThredUp, and Poshmark.
See also: Luxury brands are rushing to own the resale experience
Trove is another company that helps brands catch up on their resale efforts. The company closed a $ 77.5 million Series D funding round in August.
“reCommerce will account for 14% of the apparel, footwear and accessories market by 2024, or about $ 60 billion, up from about 7% in 2020,” the press release said at the time, adding that “Trove provides the technology platform and logistics brands need to control their reCommerce channels, allowing them to own customer relationships and data. “
Yoox Net-A-Porter (YNAP) partnered with technology company reCommerce Reflaunt in 2021.
According to a press release from YNAP, “Reflaunt’s technology fuels the entire customer journey to ensure contributing to the circular fashion economy is as simple as possible, offering free services such as customer pick-up, digital product authentication, price recommendation and professional photography management services ”.
See also: Yoox Net-A-Porter launches luxury menswear resale line, expands beyond the UK
No wonder the big names in retail want a piece of the action.
In April, Target partnered with thredUP on reCommerce for the second time, following a 2015 test.
Read more: Target tests the second-hand market with the ThredUp partnership
“A spokesperson for Target said the company has decided to partner with ThredUp again to leverage customer interest in value and sustainability,” CNBC reported. The new Target webpage on the ThredUp website is labeled as a beta test. Includes around 400,000 pieces with up to 90% discount.
Lululemon announced on Tuesday (April 12) an expansion of its Like New resale business.
See more: Lululemon expands resale program in the United States
“Built on a circular model, lululemon Like New extends the life of the product that is designed to last and ensures that every item gets its full use,” the company said in a press release. “Through the program, lululemon guests nationwide can exchange pre-loved lululemon garments for an eGift card at one of more than 390 participating US stores and purchase online resale products at likenew.lululemon.com.”
Read also: Retailers use artificial intelligence to build confidence in second-hand luxury and sneakers sales