Fashion brands are retaking resale, having watched a host of players make it big in the burgeoning “pre-loved” segment that’s putting green into apparel — and into cash registers.
Resale-as-a-Service (Raas) accomplishes several things for makers of clothing and accessories, first and foremost continued profit from items they originally made and sold in other channels. In February, fashion news site Fashionista reported on the trend, opening on how fashion house Oscar de la Renta looked at the third-party resale market and didn’t love what it saw.
The report said it was upsetting “for the Oscar de la Renta team to see how poorly the brand was presented by third parties: Items were misidentified, there was a question of authenticity — all in all, it wasn’t of the same caliber as the brick-and-mortar shopping experience that the brand prides itself on delivering.” That brought about the Encore secondhand platform in November. Logistics and payments handled by resale site Archive, 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 quickly amassed funding and notable clients,” news site Modern Retail reported in January. “In total, Archive has raised nearly $10 million, and its clients include brands like Oscar De La Renta, The North Face and Dagne Dover. In return for an initial set up fee and commission on further resale sales, Archive sets up sub-sites for these brands dedicated to resale.”
But the challenge, that coverage added, is luring consumers away from established multi-brand retail marketplaces, like Depop, ThredUp and Poshmark.
See also: Luxury Brands Rush to Own the Resale Experience
Platforming reCommerce
Trove is another firm helping brands get up to speed on their own 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 roughly $60 billion, up from about 7% in 2020,” press release stated at the time, adding that “Trove is providing the technology platform and logistics brands need to control their own reCommerce channels, allowing them to own their customer relationships and data.”
Yoox Net-A-Porter (YNAP) teamed with reCommerce technology firm Reflaunt in 2021.
Per a YNAP press release, “Reflaunt’s technology powers the entire customer journey to ensure that contributing to the circular fashion economy is as easy as possible, offering complimentary services such as collecting products from the customers’ home, digital product authentication, pricing recommendation and professional photography management.”
See also: Yoox Net-A-Porter Launches Menswear Luxury Resale Line, Expands Beyond UK
Little wonder that big names in retail want a piece of the action.
In April, Target partnered with thredUP on reCommerce for a second time, after a 2015 test.
Read more: Target Tests Secondhand Market With ThredUp Partnership
“A Target spokesperson said the company decided to partner again with ThredUp to tap into customers’ interest in value and sustainability,” CNBC reported. Target’s new webpage on ThredUp’s website is labeled as a beta test. It includes about 400,000 pieces priced at up to 90% off.”
Lululemon announced Tuesday (April 12) an expansion of its Like New resale business.
See more: Lululemon Expands Resale Program Within the US
“Built on a circular model, lululemon Like New extends the life of product that has been designed to last and ensures each item gets its full use,” the company said in a press release. “Through the program, lululemon guests nationwide can trade in pre-loved lululemon clothing in exchange for an eGift card at one of the 390+ participating U.S. stores and shop resale products online at likenew.lululemon.com.”
Read also: Retailers Use AI to Build Trust in Secondhand Luxury, Sneaker Sales
