Buying pre-owned clothing saves on average 1kg of waste, 3,040 liters of water, and 22kg of CO2 compared to buying new⁵. The icing on the cake is that resale integrates sustainability initiatives into their core business. With new opportunities to generate revenue and attract customers, branded recommerce - unlike P2P platforms or managed marketplaces - enables brands to maintain control of the customer experience and avoid being co-located with their competitors. Resale also acts as a customer retention and engagement tool: trade-in customers shop and spend ~2x as much as non-secondhand customers, and sellers are in the top quintile of customer lifetime value. Trove’s existing brand partners estimate that 50–65% of their resale customers are new to the brand, with many eventually converting into their main product line. In addition to opening up new revenue streams, Trove expands brands’ access to an often new and younger customer base. With the rapid expansion of recommerce, brands expect that 10–30% of their future revenue will be from resale. It improves asset turnover, sell-through rates, and net profits. Resale provides life to inventory that couldn’t be sold. Many brands are choosing to launch “branded recommerce” to access the fastest-growing retail market segment while capturing a slice of the revenue. However, these platforms drive consumers - and their revenue - away from brands themselves.īrands want a slice of this growing market trendīrands are starting to take notice of these trends and are seeking to regain control of their merchandise and re-engage with their customers. Multiple Peer to Peer (P2P) platforms and managed marketplaces have emerged over the past three years validating consumer demand for both buying and selling used apparel, with 5+ valued at >$1B (PoshMark, ThredUp, RealReal, StockX, DePop). In addition, they enjoy the experience of discovery, are more comfortable with buying apparel secondhand, and are generally more environmentally conscious. These digitally native consumers aspire to access brands that they otherwise wouldn’t be able to afford. This trend is being accelerated by Millennials and Gen Z consumers who are breaking the stigma of second-hand clothing. The recommerce industry is expected to grow from a $17Bn industry today to a $68 industry by 2028⁴. The secondhand fashion industry is a $27Bn market and, within that, recommerce is growing ~10x faster than brick & mortar thrifting and vintage³. As a result, textiles comprise over 5% of waste in landfills.īrands are looking for solutions to reverse or reduce their environmental footprint without impacting their profits and resale is a great option. On average, a Western family throws away 30kg of clothing annually and an item of clothing is worn 7 times before it is discarded. However, despite these negative environmental impacts, only 15% of clothing is donated, recycled, or resold and the rest goes directly to landfills or is incinerated. Producing clothing also causes deforestation, microfiber debris on shorelines, reduces farmland, and increases chemical pollution. Annually the fashion industry uses 1.3 trillion liters of water and causes ~20% of industrial water pollution². The fashion industry is responsible for ~10% of annual global carbon emissions and emits more CO2 than the aviation and shipping industry combined¹. Fashion is one of the most polluting industries in the world
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