The rise of ‘pre-loved’ fashion has been undeniable in recent years. Second-hand purchases in the UK reached £1.2 billion and Vinted has grown to a third of the size of Asos. This trend is driven by the increasing demand for sustainable choices among consumers and businesses. This is further encouraged by the cost-of-living crisis prompting individuals to reconsider their wardrobe expenditures.
Platforms like eBay, Vestiaire, and Vinted have become dominant players in the eCommerce space. These second hand platforms have emerged as go-to destinations for consumers seeking to add new pieces to their wardrobes. In addition to these platforms, initiatives and trends like the “Rule of five”, started by fashion consultant Tiffanie Darke, challenge consumers to buy no more than five new items a year.
While this shift promotes sustainability, it creates a market that traditional retailers are not directly part of. This leads to challenges for the industry. Revenue loss is obvious. However, companies also have less control over the quality of items being sold bearing their brand name.
However, with the right partnership, retailers have the opportunity to establish their own pre-owned fashion channels. These are driving revenue, attracting new customers, and strengthening relationships with existing ones. This approach is particularly crucial in light of impending legislation encouraging businesses to take more responsibility for pre-owned fashion.
The Challenges of Unregulated Peer-to-Peer Commerce
The growth of peer-to-peer commerce is forcing established retailers to try and find ways to positively partake in this movement, even though many of the products being sold on the current platforms do not go back in their supply chain directly.
Brands lack control over the provenance of products listed on peer-to-peer marketplaces. This can pose risks in the form of counterfeit goods tarnishing their reputation, with sub-par quality associated with their label. This issue was highlighted when a US jury found that luxury reseller ‘What Goes Around Comes Around’ had sold counterfeit goods and falsely implied its affiliation with Chanel.
The overall sustainability of the brand is also an important factor. The fashion industry is under immense pressure to reduce the number of garments going to landfill. No matter where the consumer buys their product, the responsibility will continue to be on the brands to proactively think about their own sustainability commitments.
Seizing the Opportunity
To evolve with customer desires, participating in the second-hand movement is crucial for brands. Research from ThredUp shows that over half of Gen Z prefer brands that offer both new and used items.
Yet how can retailers retain control over their brand and the products being resold?
Partnering with the right experts can help retailers to embed sustainability into their brand, create new revenue streams, and extend the lifecycle of clothing through the resale of pre-loved items. This strategy, combined with repair, cleaning, and restoration capabilities, attracts new customers and underscores the value of buying directly from the brand.
In 2022, GXO collaborated with the luxury children’s clothing brand Polarn O. Pyret (PO.P) to develop an integrated pre-loved solution. Customers can register trade-ins online, send unwanted items to the distribution centre, and receive vouchers for new or pre-loved stock. The extensive rejuvenation service ensures items are in prime condition for resale, maximising their value and preventing disappointing their customers.
PO.P offers pre-loved items with new season stock on its website, offering customers a seamless shopping experience. This approach has been well-received, with demand exceeding expectations and expanding PO.P’s customer base, as 35% of pre-loved shoppers were new to the brand.
The integration of new and preloved within the same webstore offers more choice for the consumer but equally importantly does not differentiate between customers who may be seeking either option, This creation of a single channel for the brand has proved powerful as it treats all customers in the same manner and offers the same brand experience. It is now common for customer orders to feature both new & preloved items.
Collaborating for Growth
PO.P’s approach not only capitalised on the demand for pre-loved clothing but also enhanced customer loyalty and brand connection. This strategy is vital for retailers in a competitive market, as diverse services appeal to various audience groups.
With external factors like the cost-of-living crisis and environmentally conscious shoppers driving the second-hand market, there are no signs of this trend slowing down. Retailers must define a strategy to offer the experiences and products customers seek elsewhere. Doing so will add value to the brand and promote sustainability. Adapting to these changes is essential to avoid losing out to competitors.
GXO’s solution set allows for rapid deployment, enabling brands to swiftly enter the pre-loved market with sector leading capabilities The Polarn O.Pyret experience has demonstrated that when approached in the right manner, with a partner with expertise, Preloved can offer a commercially viable solution that is brand enhancing and delights customers.
- Sourcing & Procurement
- Sustainability
