Yahoo Finance Why businesses are embracing the resale market to save the planet
The clothing and textile industry is responsible for up to 8% of the world’s greenhouse gas emissions, according to the United Nations. Textiles account for approximately 9% of the microplastics which enter the world’s oceans each year.
But larger brands are beginning to use the resale market as a way of giving clothes a second life, and saving them from landfill.
Just over 18 months ago, Gucci launched a new partnership with second hand luxury goods site The RealReal, which now features a dedicated Gucci e-commerce site for secondhand pieces from consignors and from the brand itself.
It followed other companies including Stella MCartney, Burberry and Levi’s in building a dedicated so-called ‘recommerce’ operation to resell goods previous customers no longer want.
More brands should be doing the same and embracing the trend for buying and selling pre-loved goods - before they get left behind, according to a panel of experts speaking at the Evening Standard’s SME XPO conference in London this week.
“Luxury brands are dinosaurs. They are run in the majority by men, and they think very old-school. They don’t even have proper websites in many cases,” said Sabrina Sadiq, founder and CEO of high-end resale site Luxury Promise.
She suggested that building a relationship with existing customers could help brands foster return visits.
“It’s never about short term traction, we need to always think about the long term and that’s what people want now.
“Selling one pair of trainers is short term; taking the old pair back and selling two more is long term.”
Brands are beginning to cotton on, said Tatiana Wolter-Ferguson, co-founder and CEO of second hand site Hewi.
“Every business is now under pressure to know what their sustainability strategy is. We’re seeing a huge influx of interest from primary brands that are wanting to get into the [resale] space, but they really don’t understand it and they really need support to access it.”
She said that retailers need to understand that introducing a resale model won’t disadvantage the business and isn’t a loss leader.
“I’m really excited by how fast people are wanting to get into it and how open people are now to change,” she added.
Reece Morgan, director of handbags and jewellery at Xupes, which also sells luxury preworn brands, said there is a “massive hunger” from consumers.
“Actually we have a lot of clients that won’t shop at the brand primary - they won’t go into Gucci to buy a bag, they want to buy one that is pre-owned because it’s more cost effective, more sustainable, and it’s more of a conscious shopping choice.”
He said that moving into the resale market doesn’t cheaper a brand, but rather adds value.
Marcia Cooper, founder and director of secondhand shop House of Vintage UK, said the benefits for brands are in the kudos they get from customers, and the way it extends their reach.
“I think it’s a really great way to communicate with your customers and connect with them.
“If you are a brand that has sustainability in its list of priorities and you have a section of your website where you are reselling, it’s a way to reach that customer and say, “we believe in the same thing”.”
