EYE on RETAIL: ThredUp discusses the state of resale
Resale is growing substantially among retailers and consumers, with no signs of slowing down.
Chain Store Age recently spoke with Anthony Marino, president of ThredUp, about the results of the recent ThredUp 2023 Resale Report and what it means for the continuing evolution of resale in the retail industry.
The first thing that stood out to me is that secondhand is a global phenomenon. It's clear that resale is not a geographic, geographically centered flash in the pan. It's clearly a mainstream form of consumer purchasing behavior around the world.
The second thing that really stood out to me is that inflation really shined a spotlight on secondhand in the U.S. Fifty-two percent of consumers shop secondhand. We've seen this before. With any crisis, whether it's COVID-19, inflation, recession, or any moment of consumer uncertainty, it puts resale in a very positive light. And it makes sense.
Consumers are feeling like the future is uncertain. They're watching where they spend their money, and so they start to look for smart alternatives. Secondhand is quite consistently at the top of their list of alternatives.
The third thing that really stood out to me is that shopping secondhand is one of the most effective ways for a consumer to have a positive environmental impact. If you buy and wear secondhand apparel, your carbon emissions is lower by as much as 25%. It’s a really significant way to move the needle. (Editor's note: ThredUp has released a free fashion footprint calculator to help consumers track the carbon impact of apparel purchases.)
he fourth and final thing that really stood out to me is that retailers and brands who are in the business of selling new things are embracing resale programs more than ever We had an increase of 244% in retailers and brands launching resale in 2022 over the year before, and that really stood out to me because 2022 was quite a difficult year to be in the retail business. We dealt with inflation. We dealt with excess inventories.
Do you think that resale will be a permanent solution to help retailers right size their inventory?
I don't think resale is an inventory solution. In 2022, retailers had a lot of excess inventory and they sold it at significant discount. That puts pressure on the retail value proposition.
But as we move into 2023 and 2024, I think many retailers will continue to be trying to come up with ways to better serve the customer. Offering resale to consumers who are clearly already participating in the market is a real path to innovation.
For retailers, it’s a way to take a customer who is in your store who has their wallet open and who is likely purchasing used items somewhere else, and get them to make that purchase with you.
How appealing is resale for consumers looking to increase their sustainability?
Value is the number one driver for the consumer. Resale’s biggest advantage is in its ability to offer 70 to 90% off retail price every day for high-quality, branded apparel.
Gen Z shoppers who say that they're very concerned about the environment and climate issues are the same ones who admit to being quite addicted to fast fashion, which has provided them with a very cheap and convenient source of clothing.
ThredUp is working to help this younger shopper who's trying to break their fast addiction to find out what an amazing alternative resale is.
What do you what do you think is going to happen in the resale space say between now and the other 2023 beginning of 2024?
There are a few things that I see in resale’s near-term future. One is that retailers and brands are going to increasingly be leaders in offering great secondhand product to consumers.
The second thing is, I think we're going to see is that the environmental and climate issues associated with fashion are going to be increasingly in the minds of consumers, of employees of brands and retailers, and of regulators.
This leads me to the third thing I think we're going to see, which is a growing amount of government and regulatory interest in trying to hold brands accountable for their manufacturing practices and for the way in which they talk about sustainability.
You're already seeing that with bills that are have been introduced in New York and in Maryland, as well as the European Commission's new directives around making a green claim that may or may not be completely accurate.
Finally, you're going to see a ton of new players entering the market, you're going to see a lot of consumers who had heard about buying resale that maybe tried it once or twice now make it a much more significant part of their clothing consumption. Those four things make me more bullish on resale than ever.
(This article originally appeared on HBSDealer's partner site, Chainstoreage.com.)
