Vintage and resale have become a well-established and formal part of the fashion industry. Recent research shows that resale sales have grown 21 times faster over the last three years than traditional retail. The market will reach $51bn by 2023. This is a projected growth rate of 16% annually. The market exceeded those projections in 2020, with vintage sales increasing 67% between the first and second half of the year.
This is due to a variety of factors, including a shift in the perception of second-hand clothing. Vintage products are now more valuable to customers. Research has shown that 40% of those under 30 take into account the resale price of an item before purchasing it. A striking statistic is the 35 percent of high-income buyers who are involved in secondhand trade. This shows that second-hand trade is driven more by ethical and environmental issues than financial gain. The desire to simplify their lives is more important than making an extra dollar.
TheRealReal published a report that shows how many pieces are still worth their price on the second-hand marketplace. The iconic bags like the Gucci Marmont and Hermes Kelly retain 92% and 74% respectively of their retail value. Designer sneakers retain a lot of value despite being expensive, such as 66% in Dior’s case, 63% in Balenciaga and 72% in Louis Vuitton. It is not well-known that ready-to-wear pieces can retain a lot of their value. Bottega Veneta Trench Coasts (+75% YoY), or Gucci loafers (+15% YoY).
It is exciting to see more retailers and brands start looking at the value in the resale marketplace, given the significant change in consumer behavior.
Balenciaga, Ba&Sh, and COS were quick to offer integrated resale models as part of their after-sales services. Reflaunt, a leading resale tech company, is behind these initiatives.
Major fashion retailers and brands began to embrace resale later in the year. Harvey Nichols announced a partnership in August with Reflaunt, H&M and the Yoox-Net-a-Porter in October. The Yoox-Net-a-Porter started with Net-a-Porter, and will be expanded with Mr Porter and The Outnet by early 2022.
Customers can resell designer items through the YNAP partnership, which offers them the opportunity to resell all lead categories – ready, bag, shoes, bags and jewellery. Handbags can be bought back immediately by pre-approved designers. Customers have flexibility in reward options, including in-store credit or direct bank transfer. The service also includes a free concierge drop-off or collection and product listing on Reflaunt’s extensive network of more than 25 global resale markets.
Who is Reflaunt, then?
Reflaunt, a technology company, offers Resale as-a-Service to multi-brand retailers and fashion brands. Fashion retailers can now empower their customers with their top technology solutions. They can resell and recycle their past purchases within a click on their ecommerce platform.
Reflaunt provides retailers and brands with resale technology, branded marketplace technology and operation solutions. It also has access to the largest global network of over 25 resale market partners and 50 million customers. Reflaunt’s global marketplace networks allow for over 50% of pieces to be sold in less than a month. On average, they have listed 2.5 items per customer. Customers have chosen brand coupons over cash for 45% of their purchases.
Reflaunt’s model of resale brings substantial value to its customers. Reflaunt’s resale service model is characterized by its ease in putting an item up for sale. It pulls the product description directly from the brand database to make the listing process easier. Customers can easily create their product listing with Reflaunt in just a few clicks. This model also offers a significant financial return to the customer through store credit. The store credit program gives customers the opportunity to either be paid in cash or to receive a higher amount in store credits. This makes it more attractive to resell through the brand, rather than selling on their own. This allows customers to unlock the value in their garments, and supports fundamental changes in the way they interact with the brand.
It is clear that resale services are valuable. It is obvious that retailers and brands are keen to grab a share of the secondhand market. But beyond the financial opportunity, the resale service can be used strategically as an opportunity to re-engage existing customers in a clever and meaningful way, boosting customer retention and reaching new audiences with a sustainability-driven mindset. Another benefit of an integrated resale service is that both the retailer and the brand own the customer journey. Customers stay on the retailer’s website throughout the process, continuing to experience their brand.
Reflaunt’s mission it to create a world where positive consumption is possible. Luxury brands can enter the resale segment using efficient circular models. Customers will be motivated to see fashion’s lasting value and extend the product’s life. This will allow them to engage with their customers and provide valuable opportunities for re-engagement.