What was once old is now new again (and again) as brands and consumers fully embrace the potential of preowned.
The resale trend has been steadily growing for years. When eBay first became popular on the internet, people’s ideas about buying used were changed. As more targeted reCommerce retail sites like thredUP and Poshmark polished the digital resale sector, it continued. For years, these and other similar third-party sites dominated the market. Recently, however, higher-end retailers have started to get into reselling branded items.
Consumers are selling clothes, accessories, and other stuff to clean out their closets and generate additional money. According to the March LendingClub report, “New Reality Check: The Paycheck-To-Paycheck Report,” it is the leading source of non-job supplemental income for consumers who can pay their expenses.
With a 10.5% share, profits from selling used items are the most popular way to make extra money, no matter how much money you have. It’s easy to see why reselling is popular right now, especially in this economy, where buyers want extra cash and sellers want deals.
Designers and retailers started seeing the value of resale in brand authenticity in 2022. Tommy Hilfiger was one of the first designers to launch a brand-dedicated thredUP store. Now called “resale-as-a-service,” thredUP lets brands like H&M open their own stores. Amazon partnered with Rent the Runway to expand the “pre-loved” designer garment industry.
Given how well these two brands worked together, it was only a matter of time before more brands entered the resale market directly. Rolex launched its Rolex Certified Pre-Owned Program late last year to emphasize its durability. Canada Goose, Lululemon, Patagonia, Eileen Fisher, and Carhartt have since joined the resale market. In its Spring-Summer 2023 collection, French luxury brand Chloe introduced smart ID with scannable labels.
The days of dusty thrift stores and broken Salvation Army bins are over. As more people embrace reCommerce, brands that join the trend see their clothes and maybe even their name recognition get a boost.
