Resale market grows as clothes turn into an investment
Updated: Sep 14
The world pandemic has caused a lot of pressure on companies who are struggling to execute orders and keep customers’ attention. On the other hand consumers have also started to feel the pressure and are changing the way they shop. Lockdown meant there is more demand for casual clothing and many brands are wondering how they will respond to that.
For thredUP, a US based company that sells second hand clothes, Covid-19 has brought new customers and increased revenue. “We are providing a nice distraction,” says thredUP CEO James Reinhart at the virtual Retail Supply Chain USA 2020. Customers have started to reevaluate how they act and how their behaviour impacts the environment. Resaled clothes provide great value and companies like Reinhart’s are picking the share. “Young generations have grown up with sustainability as part of their lives and our job is to combine this with something that makes economic sense,” he explains.
The last few months have seen consumers completely change the way they shop. E-commerce is growing exponentially and stores are turning into pick-up locations. For many companies that meant a reorganisation of manufacturing processes. Specifically in America a lot of firms have found a way out of the crisis by switching their production to Protective Equipment.
It is expected that the resale market in the USA will grow from $7 billion to $64 billion by 2024. This in turn will create a lot of logistical challenges for fashion brands. Most clothes that thredUP receives have no labels and barcodes so they are hard to organise. The company is faced with processing nearly 100 million unique items and most of them are unknown before unpacking. On the other hand sellers want the whole process to be as seamless as possible.
The ultimate question will be how to build infrastructure that can power the expected growth. Additionally, brands will be forced to deal with the change of flow as young consumers see clothing as an investment that they could later resale and get some of their money back.
Do you like this article? It is part of The Logistics Point Magazine September 2020. Read for FREE HERE!