Andrew Adam Newman’s Post

The past several months, it's been fun to partner with Beni and Kate Sanner in writing and bringing this series to life. The Resale Puzzle series has mapped the various business models and stakeholders within the secondhand fashion industry, spotlighting the roles they play and how it all works together. See below for each model we dug into & give it a read! Introduction: A Roadmap of the Resale Industry Part 1: Thrift and Consignment Stores Part 2: Online Resale Marketplaces Part 3: The Rise of Full-Time Resellers  Part 4: Brands Getting Into Resale Part 5: Resale As A Service Companies Part 6: Textile Recycling Facilities Part 7: Fashion Designers Part 8: Stylists Part 9: The Role of the Customer Part 10: Predictions for the Future — What comes next? All installments linked here: https://lnkd.in/gvFQtdbe I'm excited about what Beni is doing for the secondhand industry and honored to get to write this for them!

“People’s biggest misconception has been that resale won’t break even, let alone make margin — and yet, we’re seeing some brands’ [resale programs] achieve double the margin of their core business. And we have brands where [resale] is more profitable than their full-price business. There are now proof points from major brands that this can be a big business [driver].” - Emily Gittins, Archive's CEO and Co-Founder Read more about how the resale industry has shifted over the past few years, and why more brands than ever are jumping in to capitalize on this new business opportunity: https://lnkd.in/e3F6YTSG

One of the best articles on resale strategy I’ve read in a while which totally mirrors the approach we’ve had at Sellier from day one. It’s never been about being the biggest. Being disciplined about product and curation is what we strive for and ironically it’s our avoiding “scale” in the traditional sense (and not taking products just because we can) that’s been the biggest driver of growth for us. Of course, there’s no one size fits all approach and so much innovation across the industry that it’s hopefully a matter of time until companies like the RealReal reach profitability. “We now see shoots of profitability among certain resale companies. The strategies of those companies can be summarized with two words, “narrow” and “deep.” They are focused on a very specific set of products they know expertly which reduces authentication costs. They concentrate on efficiency in operations and avoid products they don’t know. They do not spend a lot on marketing to generate growth.” https://lnkd.in/eeiPGT5S

Time for a debate... Is resale in retail unsustainable? Share prices for even the largest secondhand platforms are notoriously struggling. Logistics are famously unpredictable. And then there's the processing, repairs, photography, promotion, and of course its storage... And after all that, how on earth do you price each item?! While the process for pricing new items is well-established, pricing in resale is hugely subjective. Sounds like we should just give up... But then we spoke to 3 experts about resale's unique advantages - and why resale might just be solvable after all... ♻️ Zoe Rowswell, Tern Eco 👗 Harriet Scriven, RE-STYLE 📦 Felix Winckler, Reflaunt Check out the full blog here https://hubs.li/Q020vRd_0

Resale has been a part of our lives for a long time, whether it's at yard sales, used car lots, or in classified ads. However, what's changing is the scale of the market. On average, a US household holds $4,517 worth of reusable goods. And a similar pattern is seen internationally. Buying and selling second-hand goods has also been a popular source of side income for part-time hustlers. But recently, more and more brands are waking up to this multibillion-dollar opportunity and have started ted to develop their reselling capabilities. Here's an excellent article from HBR on the resale revolution: https://lnkd.in/gwK_sfs2 #resale #secondhand #recommerce #commerce

When it comes to resale, there are two types of sellers: value-seekers and convenience-seekers. Value-seekers look to earn the most money. Convenience-seekers optimize for, well... convenience. If you're a brand looking to own your resale market, you can't truly own it unless you capture both of these seller stories. That's why we allow brands to offer both Trade-In and Peer-to-Peer resale (at the same time!). P2P allows sellers to set their own prices and earn the highest commission in cash or store credit. Meanwhile, Trade-In allows customers to send back their items for immediate brand credit. Both Coclico and Rylee & Cru started with P2P before adding Trade-In, and are seeing the benefits. Roughly 40% of sellers are opting for Trade-In. These are sellers that the brands hadn't reached previously. Not only are they capturing more revenue by having more listings on their resale sites, but these new sellers are spending 2-3x their credit when shopping new. Proud to say that Treet is the only solution where brands can offer multiple types of resale under one roof.

The resale sector struggles with terminology, as words like "used" can carry negative connotations. Companies often opt for terms like "pre-owned," "pre-loved," "reconditioned," "refurbished," or "vintage" to make their offerings more appealing. For instance, REI uses "Re/Supply" to indicate their section for pre-owned gear, which can be confusing for customers not familiar with the term. Clear and consistent labeling could help reduce this confusion and make it easier for customers to find what they want. https://lnkd.in/g4msSfmy

Our innovators Trove and TERSUS Solutions join forces with Filson to create the brand’s Resale Program — Filson Unfailing! The program launches with an assortment of the brand’s own inventory that is off-season and slightly damaged, with imperfections like small bruises or scratches. With the support of our innovator Trove, Filson’s resale program will launch its customer trade-in offering in the spring. Our innovator TERSUS Solutions helps with the operations of this project, including the check-in, processing, cleaning, repairs, logistics and fulfilment from its warehouse. “They are an original American heritage outfitter and they are making items that have longevity at their very core. So being able to get multiple uses out of the items, for customers to be able to trade in their items, it completely fits with their overall brand positioning and heritage and so it was really because of that that we think they’re a great partner.” — Gayle Tait, CEO of Trove. Read more here: https://lnkd.in/euG7-vRi #sustainability #sustainablefashion #ImpactfulInnovation #collaboration

The resale market is on a strong upward trajectory as three forces come together. The increasing aspiration toward sustainability and circularity in our lives, a distinctive move toward fewer better quality possessions, even used, and the diminishing sense of embarrassment at owning or acquiring used items. Fashionistas of course have long searched for special hard to find vintage pieces, and they ultimately end up in Japan, home to perhaps the best cared-for vintage treasure trove in the world. While there is the behemoth Komehyo store network and the nearly ubiquitous Mercari to deal with, the gap between these and the single highly curated vintage stores is huge. A resale platform successful in the US or Europe would do well to look into setting up a Japan-based business, rather than just coming to buy product. And brands themselves need to set up their resale platforms. If you don't sell it, someone else will.

After helping brands deliver resale experiences to their customers for five years, it's apparent that Clean Out programs are the gateway to resale. Check out Retail Dive's latest article to learn why brands tend to enter resale with take back programs, and why many of them are now increasing their investments. Plus hear first-hand from Michael Stars CEO Suzanne Lerner on the brand’s test-and-learn approach to resale leveraging thredUP’s RaaS. https://bit.ly/3ZTKVDV