Article · January 1, 2024

The Rise of Recommerce - Chute Gerdeman

Used clothing sales are projected to grow 11x faster than new clohes by 2025 and retailers are looking to capitalize on the recommerce trend.

The Rise of Recommerce [vc_row][vc_column][vc_column_text]You’ve heard the saying, “what’s old is new again.” On the surface, it may seem applicable to the rise of recommerce, but the statement is far too simple to define a movement motivated by values, both brand and consumer. Backing up though, it’s important to take a look at how we got here. Fast fashion once reigned supreme as a driving force in the industry with ultra-affordable pieces and new styles springing up faster than they could exit the runway.

Consumers who once filled their closets with disposable wardrobes soon became aware of the environmental and social costs of producing temporary textiles. The appeal dulled as fast as the color of these lesser quality clothing items. Brands like AYR quickly emerged to outwardly embrace “slow fashion,” and others like Patagonia encouraged consumers to well, not only consume less, but created ways to help extend the lifetime of their cherished garments.

At the same time, we watched the emergence of apparel rental models like Rent the Runway and Nuuly. High-fashion became affordable on temporary terms, and consumers were content with access over ownership. The retail reality though, is this isn’t just a shift.

What we’re seeing suggests long-term adoption. And, while many brands have taken the initiative to source or produce more sustainable products, many realize it’s not going far enough. We’re entering an era of recommence, and brands are integrating these resell programs into an overall retail model.[/vc_column_text][movedo_empty_space][movedo_single_image image=”30797″ retina_image=”30797″][/vc_column][/vc_row][vc_row][vc_column][movedo_title line_type=”line”]A Circular Economy[/movedo_title][vc_column_text]The drive to do good is good, but it turns out it’s actually pretty profitable too.

Online consignment and secondhand sales are soaring. Currently, the secondhand market generates nearly $30 billion in sales annually in the United States and is projected to double in the next five years. According to research commissioned by online resale company ThredUp, the sale of used clothing is projected to grow 11-times faster than new clothes by 2025, and 60% of traditional retail executives plan to capitalize on recommerce sales via partnerships with outsourced resale businesses.

In many cases, sites like Poshmark, Depop, and Stadium Goods, are already reselling major retailer products. Why not embrace the demand, carve out a piece of the market, and support sustainable initiatives?[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][movedo_quote quote_style=”line”]“The sale of used clothing is projected to grow 11-times faster than new clothes by 2025.” – Online Resale Company, threadUP[/movedo_quote][/vc_column][/vc_row][vc_row][vc_column][movedo_title line_type=”line”]Lululemon – Like New[/movedo_title][vc_column_text]Athleisure retailer Lululemon is stretching its reach into the resell market with the launch of its “Like New” program. Through a partnership with Trove’s online resale marketplace, customers can now trade in gently used Lululemon items in-store or by mail in exchange for a gift card.

A month later, the item will re-enter circulation online at a lower price point. Items are cleaned, and any that don’t make the cut are recycled through the brand’s partner Debrand and used for things like home insulation, stuffing mattresses, furniture, and stuffing sports equipment. Store credit for trade-ins range from $5 for tank tops and shorts to $25 for coats and jackets.

And you can even trade-in Like New gear! Furthermore, 100% of profits from Like New are reinvested into sustainability initiatives. The brand is currently testing in California and Texas.

If it goes well, they’ll roll out to other markets.[/vc_column_text][movedo_empty_space][movedo_single_image image=”30796″ retina_image=”30796″][movedo_empty_space][/vc_column][/vc_row][vc_row][vc_column][movedo_quote quote_style=”line”]“Lululemon is actively working to help create a healthier future. The business is working toward several sustainability goals, including making 100% of its products with sustainable materials and end-of-use solutions by 2030.” – Calvin McDonald, CEO[/movedo_quote][/vc_column][/vc_row][vc_row][vc_column][movedo_title line_type=”line”]Nike – Refurbished[/movedo_title][vc_column_text]To expand the lifespan of footwear, athletic giant Nike launched an in-house program for new, gently worn, or cosmetically flawed sneakers. Customers can bring in their shoes to select locations participating in the “Refurbished” program.

Shoes are inspected, cleaned, and refurbished in-house by hand. They’re then resold at discount prices at outlets, clearance stores, and community stores. So, don’t stroll in from 5th Avenue expecting some discount kicks.