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Insights into the resale market boom

With the second-hand market heating up, we round up what makes this market tick and the challenges new entrants face.
Insights into the resale market boom | EDITED

There’s a "purge surge" looming. According to ThredUp, 80% of US consumers plan to refresh their closets once the pandemic is over by either tossing items they no longer want or buying something new. 

As retail continues to embrace the second-hand market, repurposing unsold or unwanted inventory will be critical in managing waste amid this phenomenon. 

In our sustainable fashion in 2021 report, we highlighted closing the loop as a core theme for retailers to reduce their environmental impact, saluting the power of the resale market, which is only getting bigger. In a recent game-changing deal, Etsy snapped up Depop for $1.6bn. 

The future is second-hand. Read on to discover why.

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Insights into the resale market boom | EDITED

The RealReal Email - May 31, 2021

Recent developments

In addition to Etsy purchasing Depop to target a younger audience, several other retailers have been pivoting their strategies to get in on the resale action. 

  • Mytheresa has partnered with Vestiaire Collective on a resale service that will kick off by inviting its top clients to sell their pre-loved luxury handbags online in exchange for store credit.
  • The rental market experienced a turbulent 2020 as events were put on hold. This recently led to Rent the Runway entering the resale space by also making all of its inventory available to buy outright.
  • George at ASDA partnered with wholesaler Preloved Vintage Kilo and launched a second-hand fashion range in 50 stores across the UK.
  • Sellpy, the majority H&M-owned Swedish resale platform, has announced plans to expand into 20 more European countries
  • Resale company Recurate secured $3.25mn in funding, which it will use to fuel expansion after signing partnerships Mara Hoffman, Frye, Re/Done and more.
  • JD Sports partnered with trainer resale company Sole Responsibility, which will sell the sports giant's end of line or slightly damaged sneakers via its eBay site, helping avoid unnecessary landfill waste.
  • In April, Nike launched its Refurbished program in eight outlet stores nationwide, contributing to its goal of increasing the number of products it can repair, recycle or re-home tenfold in five years. The program will collect shoes to be graded, sanitized, restored and then resold at 15 stores at a reduced price based on their condition.

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