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e-commerce Editor's pick Retail sustainability

3 ways brands are experimenting with the resale market

From partnering with resale websites to facilitating consignment selling, brands are increasingly exploring ways to be more involved with their products as they continue through their lifecycles.

Part exercise in brand control and part push for more sustainable consumer habits, the move is of course also an enormous opportunity for extended revenue streams.

The secondhand market is projected to double in value over the next five years, skyrocketing from $24bn to $51bn, according to a report from resale site, thredUP.

We’re also seeing heavy investment in the resale space as a result. Foot Locker just put in $100m into GOAT, while Farfetch recently acquired Stadium Goods for $250 million. There’s also a round of funding coming up for sneaker marketplace StockX, which will turn the company into the first sneaker reseller valued at $1bn, according to Recode.

Here are three ways brands are otherwise experimenting with and promoting the resale market:

1. PARTNERING WITH RESALE WEBSITES

Starting this April, & Other Stories started selling pre-owned garments. The project was created in partnership with second-hand platform Sellpy, which manages and operates its sales. When clicking on the new “pre-loved” section on the & Other Stories’ website, clients are redirected to sellpy.se. For now, the service is only available in Sweden.

“We’re exploring different ideas on how our long-lasting designs can find their way to new owners. With that in mind, we decided to do a small second-hand test project with Sellpy,” explained Sanna Lindberg, managing director of & Other Stories.

Stella McCartney made history last year as the first luxury brand to promote the consignment of its products on The RealReal. Anyone selling Stella McCartney products on the platform receives a $100 voucher valid at any of the brand’s stores or via its website.

2. DRIVING RESALE SELLING AND BUYING THROUGH STORES

Neiman Marcus recently invested in Fashionphile, a high-end consignment boutique. It has plans to have Fashionphile drop-off locations inside select stores, allowing shoppers to get paid right away for their pre-owned items. For now, Fashionphile is offering an increased buyout price for those who opt to receive payment as a credit at Neiman Marcus.

Meanwhile, just last month, Galeries Lafayette introduced a second-hand fashion platform called Le Good Dressing, which combines online shopping with an in-store experience. Vendors on the site sell products and then drop them off in the store, where buyers can come in to get their purchases – with no commission charged.  Sellers also receive a voucher that can be redeemed at any Galeries Lafayette store or its online shop. Attracting both buyers and sellers into the store, this initiative translates into a host of new sales opportunities.

Added to the list is the new Levi’s flagship in New York City’s Times Square, which has a section dedicated to selling pre-owned garments. Here, it’s possible to find not only newer styles, but also refurbished items from past decades, going as far back as the 1930s and 1940s.

3. FACILITATING THE CONSIGNMENT ITSELF

West coast brand, Reformation, is the first brand to partner with resale website thredUp on a project called UPcycle. When customers shop on the Reformation website throughout May 2019, they all automatically receive an UPcycle kit in their orders. These kits enable customers to shop the clothes they want to consign to thredUP, taking away the hassle of sorting out the inventory to do so.

But that’s not all, when a customer decides to consign any product from any brand via thredUp, they also have the option to get paid with a gift card for Reformation. This is a way to create more circularity, while also promoting Reformation’s brand. ThredUp expects to establish similar partnerships with 10 more companies this year.

How are you thinking about retail innovation? We’re all about finding you the perfect partners to do so. The Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more. 

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business digital snippets product Retail sustainability technology

ICYMI: Rent the Runway’s competitive lawsuit, Cavalli exits US, the data gap for fashion sustainability

A round-up of everything you might have missed in relevant fashion, retail and tech industry news over the past week.

TOP STORIES
  • Inside Rent the Runway’s alleged “scheme of monopolistic, anti-competitive conduct” [The Fashion Law]
  • The struggling fashion house Roberto Cavalli closes its U.S. stores [NYT]
  • Exactly how bad is fashion for the planet? We still don’t know for sure [BoF]
TECHNOLOGY
SUSTAINABILITY & PURPOSE
  • Sustainability becoming an economic benefit for luxury brands [Fashion Network]
  • Hundreds of US cities are killing or scaling back their recycling programs [Vox]
  • Corona builds plastic trash wall on Ipanema Beach to warn from plastic pollution [PR Week]
  • Asda’s George to only use recycled polyester by 2025 [Drapers]
  • The North Face aims to reduce man-made waste in collaboration with RÆBURN [Complex]
  • The next wave of sustainable fashion is all about regenerative farming [Fashionista]
RETAIL & E-COMMERCE
  • At Galeries Lafayette’s new Champs Élysées flagship, the Paris concept store is reborn [Vogue]
  • Tommy Hilfiger closes NYC flagship and more [Fashion United]
  • Dior expands beach collection with dedicated dioriviera spaces [WWD]
PRODUCT
  • Gentle Monster and Huawei team up to launch fashion-focused smart glasses [The Current Daily]
  • Lululemon soars on menswear, online push; inches into Nike turf [Reuters]
  • Reformation is launching its permanent extended sizing clothing collection [Fashionista]
  • Bobbi Brown and Walmart want to bring wellness to the masses [BoF]
  • Luxury marijuana brand Beboe is launching a skincare label [Paper Mag]
  • Amazon now wants to get into your make-up bag with their own skincare brand [Vogue]
BUSINESS
  • Farfetch invests in The Modist [Drapers]
  • Michael Kors steps back from Capri board [WWD]
  • PVH in talks to sell Calvin Klein women’s jeans business [Retail Dive]
  • Carine Roitfeld announced as style advisor of Karl Lagerfeld’s namesake brand [Harpers Bazaar]
  • Neiman Marcus drums up support for refinancing [WWD]
MARKETING & SOCIAL MEDIA
  • Jo Malone London is launching a new fragrance exhibition [Harpers Bazaar]
  • Dove debuts #ShowUs image library to diversify depictions of women in media [Marketing Dive]
  • YSL Beauty hits the desert for debut Coachella pop-up [WWD]
  • Fashion designer Simon Porte Jacquemus is opening a café in Paris and it’s an Instagrammer’s dream [The Independent]
CULTURE
  • The future of luxury is freedom [BoF]
  • Shopping while Chinese: Real stories of discrimination [Jing Daily]
  • Ikea’s next big thing is self-care [Fast Company]
  • Generation Z: Who they are, in their own words [NYT]
  • Why does the burden of creating inclusivity in fashion fall largely on marginalized groups? [Fashionista]

How are you thinking about innovation? We’re all about finding you the perfect partners to do so. The Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.