By Alicia Rosa
Manager of Trend & Creative Services
Brand Central
Re-commerce, or reverse commerce, is peaking with the introduction of a slew of new resale partnerships and concepts from mainstream retailers and brands. This industry has been rapidly on the rise over the last few years, accelerated by COVID and Gen Z’s desire to shop more sustainably and create less waste.
Sneaker reselling used to be the go-to option for consumers, but apparel, accessories, and even homewares are beginning to eclipse the luxury sneaker category now that young consumers are obsessed with thrift-flipping. According to Statista, the secondhand apparel market is estimated to reach $64 billion by 2024, up from the estimated $30 billion value in 2020. As technology and consumer shopping habits evolve, the reselling market could become just as important as traditional retail for brands.
Retail Sustainability
Consumer demands for sustainability have made it important for brands to diversify beyond simply using eco-friendly materials or planting trees. Gen Z and Millennial shoppers are pushing for initiatives that impact supply chains and create less overall global waste. The re-commerce market represents a unique opportunity for brands and retailers to add revenue from a new stream while proving to their consumers they’re reducing waste and operating sustainably.
According to a GlobalData survey, 30% of Millennials and 40% of Gen Z purchased secondhand in 2019, and this trend isn’t going anywhere any time soon. TikTok is flooded with millions of thrift haul videos, thrift-flipping tutorials, and videos disparaging the fast fashion industry and its contributions to over-consumption. We expect to see more start-ups and fresh brands enter the reselling space, especially ones that make it convenient to buy and sell at stores customers are already visiting anyways.
We’re starting to see reseller marketplaces partner with more mainstream brands, making it easier and more accessible for consumers to sell and recycle their items. Vera Bradley recently announced will be partnering with ThredUp for their resale program, and Poshmark and Snap are teaming up for a “social shopping experience” on Snapchat. Users will be able to shop at live virtual events and browse Poshmark’s entire marketplace without leaving the Snapchat app. Some retailers are taking the trend in-house. Lululemon will launch their own in-store and online resale program in June, which will allow customers to sell and buy used clothing. Ikea also created their own program where customers can exchange their used furniture for vouchers. Ikea will then re-sell the merchandise in their bargain section. Depop has reigned as the most popular reselling app for Gen Z (54% of their users are 15-24 years old) but have been slow to launch partnerships with other retailers. They recently teamed up with Adidas to allow Depop sellers to customize a pair of Adidas’ new sustainably-made sneakers, with proceeds going to charity.
Getting Crafty
This re-commerce movement is also being driven by the current consumer obsession with handmade and vintage items. Thrift-flipping, crafted decor, and secondhand home decor is rapidly on the rise, especially on platforms like Instagram and Depop. From vintage Betty Boop merch, to kitschy vases, to resin rings, to colorful crochet cardigans, everyone wants to shop small and support the creative hobbies we all developed during quarantine.
As this circular economy develops, it will be even more important for mainstream retailers and brands to collaborate with small artists and makers to help them reach a wider, more loyal audience. The push to shop small and the ability to go viral on TikTok is creating a high demand for these crafted products, allowing retailers to step in to help small artisans scale their business to meet consumer demand. Amazon’s Handmade program has seen success since it launched and Urban Outfitters’ Marketplace has given a big boost to small brands like Zig Zag Goods, a unique thrift-flipping brand known for their painted vintage jeans and boots.
As e-commerce technology evolves and consumers develop new shopping habits in a post-COVID world we can expect to see the re-commerce market continue to rise and become more mainstream. We also expect to see it involve more categories like home goods, furniture, and handmade items.
We Bring You Up to the Speed of Now
We’re Brand Central Insights, a custom trend intelligence service from licensing agency Brand Central. We understand that trends change so quickly it can hinder the ability to strategize and innovate, so we created a unique offering that distills pop culture trends and market insights most important to your business so you can stay focused on the future. Unlike other syndicated trend services, Brand Central Insights only gives you trends specific to your business and core consumer, along with actionable recommendations on how to leverage these trends to drive sales and build buzz. Each month we’ll be rounding up the hottest trends across food, fashion, home, influencers, and more to show you what we’ve been loving.
Want even more trends in the meantime? Contact us to learn more about Brand Central Insights and for a sample report! Email Alicia at alicia@brandcentralgroup.com today for more information.