Fashion Recommerce

Recommerce or reverse commerce, refers to the process of selling previously owned, new or used products, through physical or online distribution channels to companies or consumers willing to repair, if necessary, and reuse, recycle or resell them afterwards.

In the present scenario of the online fashion business, there is a new trend instead of buying new clothes, many consumers are turning to second-hand renting, and reselling clothes. The 3 top fastest-growing categories are second-hand, subscription, and rental. 

As per ThreadUp 2019 Resale report 

Total Second-hand Apparel Market to Double in 5 Years With Resale Sector Driving the Growth

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Some facts from the report are

  • 64% of women bought or are now willing to buy second-hand products
  • Second-hand attracts all ages, but millennials (25-37) & boomers (56-65+)thrift the most
  • 26% of luxury shoppers also buy second-hand.
  • 25% of department store shoppers also buy second-hand.
  • 22% of value chain shoppers also buy second-hand.
  • Millennials (25-37) and Gen Z (18-24) are driving the growth of second-hand

Drivers of growth in Fashion Recommerce 

Sustainability 

Fast Fashion is known for waste and pollution

  • The equivalent of one garbage truck of textiles is landfilled or incinerated every second
  • 108M tons of non-renewable resources are used each year to produce clothing.
  • The textile industry will account for 25% of the global carbon budget by 2050.

The Rise of the Conscious Consumer towards sustainability drives them towards second-hand, renting and reselling. 

72% customer preferred to buy from brands that offer sustainable products and solutions

59% consumer expect the brand’s or retailer to make their clothes ethically and sustainably 

Social Media Impact

(Consumer need new style every day and wants to project them as sustainably conscious as well )

Technology to shop from anywhere 

(Online platforms & Channels)

Consumers No longer Buy with the intent to keep

While established brands have traditionally avoided the second-hand retail, they are now moving forward into the pre-owned and rental markets for the following reasons

  • REVENUE BOOST
  • SUSTAINABILITY
  • CUSTOMER LOYALTY
  • NEW CUSTOMERS
  • INCREASE STORE OR SITE TRAFFIC

Fashion recommerce plays important role in Circularity

  1. Materials: Clothes are made from safe and renewable materials.
  • Design: Create clothes in a way that they can be resold, renewed, or made into new clothes.
  • Resell: Extend the life of clothes via resale, rental, and other business models.
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If Everyone Bought One Used Item Instead of New This Year, We Would Save

 

5.7B lbs of CO2 emission

11B kWh of energy

25B gallons of water

449M lbs of waste

Source: ThreadUp 2019 Resale report

Leading Players

Global –

  1. ThreadUp  2. TheRealReal  3. PoshMark

Indian –

1.Coutloot  2. Kiabza

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