Shiny is a Good Start but Can it Scale?
Shiny is a Good Start but Can it Scale?
7 MINS READ
Key Takeaways
Many brands are finding low-lift ways to launch programs in the media. While these programs are a good start, they require additional investment and technology to become meaningful to the business and customers.
Resale is quickly becoming a customer expectation rather than an innovation as more brands launch resale programs.
This past week we saw the launch of three new brand resale platforms: Michael Kors, Marimekko, and PrettyLittleThing (PLT). Dicks Sporting Good expanded a local trade-in program, Amazon invested in Cashify, an Indian electronics trade-in marketplace, Trove reached 700 U.S. stores with trade-in technology, and The Cut gave us a not-so-nice peak inside The RealReal.
Michael Kors and Marimekko launched resale programs with beautiful splash pages and gorgeous photography and activated them with paid media budgets. The sites are powered by Recurate and Archive, respectively. They follow the pattern that will likely define resale in 2022– low resource lift and high media exposure. As more brands offer resale, it will further accelerate the shift of branded resale from innovation to expectation.
As @SourcingJournal writes, these programs provide brands a low-lift way to launch resale by putting the work of listing, pricing, and selling thru on the customer. Over the longer term, these programs will require additional investment to go from marketing to business relevant. For example, as of August 30, Michael Kors had 74 items for sale, Marimekko 1,203: when shopping across 13 categories and half a dozen sizes on Marimekko it quickly becomes hard to shop.
Trove shared a milestone of their Recommerce Operating System powering trade-in technology for 700 stores nationwide. Physical retail trade-in provides a tremendous advantage for brands making it easier for customers to bring back items, driving foot traffic, and cementing loyalty. This approach is an excellent example of the technology necessary to scale profitable resale for brands.
Dicks Sporting Goods expanded local trade-in events with partner SidelineSwap. It’s a no-brainer as stores fight to become community hubs. And Amazon’s 2% stake in Cashify, an Indian electronics trade-in marketplace, is another early signal of the importance of electronics supply globally. I anticipate more shakers and change-makers to come over the next decade.
Finally, The Cut exposed a “very real” look into The Real Real. The piece did its best to add a small dose of sugar with, ‘but I can’t stop shopping’; however, that is where the sugar high ends. The viewpoint is fairly accurate, but in the broader context, early marketplaces such as The Real Real have been the innovators that have made resale of today mainstream. These marketplaces will face additional pressure as brands launch resale programs with lower customer acquisition costs, existing supply chains, and store bases.
Until Next Week,
Andy Ruben, Founder & Executive Chairman
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Resources:
Week of August 30:
Michael Kors Pre-Loved, a New Resale Marketplace, Launched Friday
Looking to support the circular economy, Michael Kors launches a resale marketplace on PreLoved.MichaelKors.com. With this new marketplace, Michael Kors wants to re-invent the meaning of timeless luxury. Only Kors VIP members are able to sell previous products.
How Michael Kors is Offering ‘Low-Lift’ Resale
Michael Kors PreLoved recommerce marketplace is an example of a brand managed peer to peer resale. It’s relatively low resource as the VIP Micahel Kors members do most of the heavy lifting. VIP PreLoved members upload photos, set the asking price, write the descriptions and current conditions. MK just has to verify and approve submissions for accuracy.
Heinz and thredUP Drop Vintage Drip Collection Celebrating the Iconic Ketchup Stain
You want a designer ketchup stain with that? Heinz Vintage Drip released it’s first-of-its-kind fashion collection featuring 157 secondhand streetwear and designer piece. Each item with a unique HEINZ ketchup stain taking the stigma out of ketchup stains. In partnership with thredUp, Heinz will donate 100% of profits to Rise Against Hunger while also promoting fashion sustainability.
DICK’S Sporting Goods Expands Resale Partnership with SidelineSwap
Used sports gear accounts for approximately $20 billion of unused items in a typical U.S. household. DICK’S Sporting Goods and SidelineSwap, the world’s largest online recommerce for new and used sporting goods, are continuing their partnership to offer a variety of new trade-in events in seven states.
PrettyLittleThing launches resale Partnership with Sideline Swap
In response to customers wanting to sell their PrettyLittleThing garments that they no longer wear, PrettyLittleThing rolled out a community resale marketplace. Consumers can access resale items from their existing PrettyLittleThing orders making it efficient and easy to sale and upload products. PrettyLittleThing hopes to inspire customers to recycle garments using the three R’s, re-selling, re-wearing, and re-using.
The key fashion pieces right now? Clothes you’ll want to still wear (or sell on) in five years’ time
With the rise of sustainable fashion, comes the emergence of a different fashion style, Timelessness. The most fashionable statement you can make is not giving into the fashion trends of the moment. Although pre-loved items aren’t as transparent on an environemntal impact it’s obvious that the most coveted look is one that will still be desired in five years.
The RealReal Is a Total Mess, and I Can’t Quit It
The RealReal is a Real hot mess and what customers believed to be growing pains of a startup seems to only have gotten more chaotic since the company went public. It’s more about quantity than value of products and employees have said they have felt overworked and underpaid. However, clients say they will still shop there because it’s the only place with reasonable pricing.
How And Why To Promote Resale in Your Organization
Founder and CEO of Rebag Charles Gorra shares how and why retailers and brands should adopt a circular business model.
Vintage Gucci soars as hottest resale brand, demand increases 500%
The Real Real released it’s annual report which declared Gucci the most sought after resale brand. Gucci is most likely to cash in higher when flipped along with Chanel, Prada, and Hermes. The Real Real saw a 44% increase in purchases and 5.3 million new site users this year.
Marimekko Partners With Archive to Make Resale and Vintage Possible
Resale is going global, this week sought-after Finnish design-house joined the recommerce market powered by Archive. This new platform is inspired by the thought that timeless designs bring joy to consumers. For now Pre-loved Marimekko will only be available in Finland with plans to service other markets in the future.
Amazon Exclusively Invests in Cashify, A Re-Commerce Marketplace
Re-Commerce is all the rage and Amazon has joined the race, by investing in the re-sale marketplace Cashify. Through the solution, smartphones, laptops, and all other electrical needs can be bought second hand directly from customers. Cashify works through a variety of retail and online channels that will only increase with Amazon’s investment into the future of re-commerce.
Resale Going Mainstream in Canada with Consumers Particularly Valuing Brand-Owned Resale: Report
Recurate reports major takeaways concluded that 85% of shoppers would try a new brand if resale was offered, 75% of all participants said recommerce would increase their brand loyalty but third party marketplaces are their only option, and 72% of recommerce shoppers shop at least every two to three months participating in frequent fashion without fast fashion. Most shocking, 74% of people across all major markets, ages, genders and socioeconomic status shop recommerce.
Beni Scours Internet for Best Price, Alternatives for Resale Shoppers
Meet Beni, a woman-founded resale start-up. No, it’s not another marketplace, but a free google chrome extension making secondhand shopping easier. With this extension you can see real time marketplace listings with 18 of Beni partners including: Nearly Newlywed, Rent the Runway, TheRealReal, and eBay to name a few. Beni hopes to get people in the habit of shopping more sustainably by the ease of the scrollable pop-up that appears on the desktop during online window shopping.
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