Shaping the Resale Experience: Strategies and Innovations from Brands and Retailers

The rise of the resale market has been a major trend in the fashion industry in recent years. Brands and retailers are increasingly recognizing the potential of the secondhand market and are developing new strategies to shape the resale experience for their customers. In this article, we'll explore some of the ways that brands and retailers are shaping the resale experience, from launching their own resale platforms to partnering with established players in the industry.

One of the most significant developments in the resale market is the launch of dedicated resale platforms by brands and retailers. For example, luxury fashion brand Gucci recently announced the launch of its own resale platform, "Gucci Vault," where customers can buy and sell pre-owned Gucci products. By launching their own resale platforms, brands and retailers can control the customer experience and maintain the quality and authenticity of their products.

Another way that brands and retailers are shaping the resale experience is by partnering with established resale platforms. For example, in 2019, luxury retailer Neiman Marcus partnered with the resale platform Fashionphile to launch its own luxury resale service. By partnering with established players in the resale market, brands and retailers can leverage their expertise and infrastructure to offer a seamless and reliable resale experience for their customers.

In addition to launching their own resale platforms or partnering with existing ones, brands and retailers are also exploring other ways to integrate the secondhand market into their business models. For example, outdoor clothing and gear retailer REI recently launched a trade-in program where customers can exchange their gently used gear for store credit. The program not only encourages customers to buy from REI but also provides a sustainable alternative to throwing away old gear.

Moreover, some brands and retailers are experimenting with circular business models, where they design products with a closed-loop system in mind. For example, H&M has launched a collection called "Conscious Exclusive" that features sustainable materials and circular designs. The collection is part of H&M's goal to become 100% circular and climate-positive by 2030.

By embracing the resale market and sustainable business models, brands and retailers are not only reducing their environmental footprint but also creating new revenue streams and strengthening customer loyalty. According to a report by ThredUp, the secondhand market is expected to reach $64 billion in the next five years, and brands and retailers that fail to embrace the trend risk losing market share.

However, the rise of the resale market also presents some challenges for brands and retailers. One significant challenge is ensuring the authenticity and quality of pre-owned products. Brands and retailers need to invest in robust authentication processes and quality control measures to maintain their reputation and avoid counterfeit products.

Another challenge is balancing the resale market with the primary market. Brands and retailers need to ensure that their resale efforts do not cannibalize their primary sales or devalue their brand image. To achieve this, brands and retailers need to develop clear pricing strategies and messaging that differentiate their primary and secondary markets.

In conclusion, the rise of the resale market has presented a significant opportunity for brands and retailers to shape the customer experience and embrace sustainability. Whether by launching their own resale platforms, partnering with established ones, or exploring circular business models, brands and retailers can tap into a growing market and strengthen their relationship with customers. However, brands and retailers must also overcome challenges such as maintaining authenticity and balancing the secondary and primary markets to fully realize the potential of the resale market.