Over the past two years, resale has continued to make gains – propelled by Millennials and Gen Z shoppers who not only increasingly use digital platforms, but have also become more aware of their footprint. carbon. Then there’s also the COVID-19 factor, which has boosted resale adoption among budget-conscious consumers.
It is therefore not surprising that more and more retailers are looking to capitalize on the growing market by entering into direct partnerships with such resellers.
According to statistics from GlobalData, the US-based second-hand market is expected to grow at a compound annual growth rate of 39% from 2019 to 2024, to reach $ 64 billion, and to double the size of the industry. fast fashion industry globally. Specifically, the online opportunity is expected to improve by 69% between 2019 and 2021, while the retail sector in general is expected to decline by 15%.
Here, FN summarizes the major retail resale partnerships or investments that have emerged in recent years – proof that the opportunity is not only booming but is here to stay.
Mytheresa with Vestiaire Collective
On June 8, Mytheresa and Vestiaire Collective set up a resale service involving the “top customers” of the former, who can now sell their second-hand handbags from a selection of 20 high-end brands on Vestiaire Collective and receive a payment in the form of a Mytheresa store credit. According to the platforms, the initiative marks the first time that a multi-brand luxury platform has adopted designer resale to “strengthen the shift to circularity as part of the fashion ecosystem.” Together, they plan to roll out the service to Mytheresa customers outside of Europe – and expand it to all product categories – by the end of the year.
Walmart with ThredUp
Last year in June, as the COVID-19 health crisis kept stores in the United States shut, Walmart grabbed the headlines after announcing its collaboration with ThredUp. After all, both companies are powerhouses in their own right – the former widely recognized as the world’s largest company in terms of revenue and the latter boasting of being the world’s largest online thrift store. Additionally, the partnership has given Walmart more leverage in the fashion space, which it has prioritized in recent years through the launch of private labels and the hiring of fashion designer Brandon Maxwell as Creative Director, among other initiatives.
Macy’s and JCPenney with ThredUp
Within 24 hours, two national retailers partnered with ThredUp. During its second quarter conference call in August 2019, Macy’s announced that it has launched a pilot project with the resale site at 40 of its stores across the country. Shortly after, JCPenney revealed that 30 of its locations would offer a selection of second-hand women’s clothing and accessories from the site to run weekly. Through these alliances, department store chains were seeking not only to attract the young customers who are behind the second-hand boom, but also to reestablish stagnant sales in a context of accelerating e-commerce.
Burberry with The RealReal
In October 2019, Burberry launched a pilot program that encouraged customers to register its products on The RealReal. It was a meaningful marriage between a British luxury brand and a US-based secondhand seller, amplified by an ‘exclusive’ shopping experience that went beyond traditional retail partnerships and of resale. At select Burberry stores across the United States, customers were able to sample champagne and tea, as well as purchase a personal selection from the fashion house’s latest collection at the time. (RealReal has also partnered with sustainable designer label Stella McCartney, which previously opened a pop-up store in the Consignment Market concept store in New York’s SoHo neighborhood.)
Neiman Marcus with Fashionphile
Two years ago, Neiman Marcus became the first major luxury retailer to invest directly in the resale market through a minority stake in Fashionphile. Since then, the partnership has seen the opening of five shop-in-shops at the chain’s stores in Palo Alto, San Francisco, Beverly Hills and Fashion Island in California, as well as in NorthPark Dallas. He added that he had raised nearly $ 16 million for more than 18,000 resale items. Then, in April this year, Neiman Marcus revealed that he would open 10 more Fashionphile sales studios across the country, as well as a digital tool called the Stylist Network to enable sellers to help customers buy and sell products. high-end bags and accessories.