resale

Lululemon Unveils Workout Hijabs

Lululemon Unveils Workout Hijabs

Lululemon’s workout hijabs are here. 

The “Scarf-style Hijab” by Lululemon.
Courtesy Photo

The athletic apparel, accessories and retailer quietly unveiled its latest creation last week: Lululemon hijabs. 
The head coverings are worn by some Muslim women in public. As a result, Lululemon said its design team consulted with “hijab wearers across the brand’s global collective” to create the assortment, which includes lightweight and moisture-wicking fabrics that “offer adjustable fits and distraction-free features to support guests during their activities of choice and as they move throughout their day.”

Traditional hijabs are worn by some Muslim women in public. Here, Lululemon’s version.
Courtesy Photo

The first two styles — the “Lightweight Performance Hijab” and the “Scarf-style Hijab” — dropped this month. The “OTM Pull-on Hijab” will be available later this year. The garments come in multiple colorways and range in price from $38 to $42 apiece. 

Lululemon’s “Lightweight Performance Hijab.”
Courtesy Photo

Lululemon follows brands such as Nike and Sweaty Betty in releasing exercise hijabs. The company declined to comment more on the launch. But the workout gear is just the latest for the Canadian company, which has expanded into golf and tennis apparel, bags made from mushrooms, resale and at-home fitness, all during the pandemic. Lululemon is also the official outfitter of Team Canada (a role it will retain through 2028).
Meanwhile, the company continues to grow despite industry-wide headwinds. In April, Lululemon set its sights on a $12.5 billion revenue target by 2026.

Lampoo Takes Secondhand Experience to the Storefronts

Lampoo Takes Secondhand Experience to the Storefronts

MILAN — The opening in December 2020 of a brick-and-mortar store in Milan’s Brera district was a strong sign that Italy-based consignment marketplace Lampoo was trying to expand its footprint beyond the digital realm.Now the company, which is growing its scope rapidly, has forged ties with premium Italian retailers to bring the secondhand experience to storefronts. This step is in sync with founder and chief executive officer Enrico Trombini’s vision regarding the role physical retail can play in the resale market, which is expected to be worth $77 billion by 2025, according to resale marketplace ThredUp.
“In two to three years we will no longer buy our fashion the way we’re used to, [shifting the model] is part of the survival of retail,” said Trombini, comparing fashion to the automotive market, which has increasingly moved toward rental and leasing to keep growing.

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“Flagship stores and multibrand retailers will allow customers to give back used goods in exchange for credit to be channeled into new clothing,” he said. “Stores are going to become a pivotal hub for circular fashion; it’s unlikely they will be entirely cut out from this business model,” he offered.
As part of the project Lampoo has sealed a deal with Italy’s Camera Buyer – The Best Shops and has already convinced marquee multibrand stores in the country including Como’s Tessabit; Spinnaker, which counts several stores in the Liguria region; Julian Fashion based in Ferrara, and Al Duca D’Aosta, among others.
The multibrand stores will serve as a gathering point for secondhand goods, wherever these were acquired. The products will then be collected, evaluated and priced by Lampoo following a procedure named “Certified by Lampoo.” The e-tailer will place fashion and accessories on its site, remitting the value to the stores, which can convert it into credit for their clients.

A Lampoo campaign.
Courtesy of Lampoo

A range of 30 top-tier brands’ handbags are considered hot tickets, meaning that Lampoo will pay the stores for their values immediately upon evaluation, while ready-to-wear pieces are offered on the platform on a consignment basis.
“This service represents a trigger for stores’ customers in that it boosts their loyalty and supports upselling,” Trombini said. “Customers are likely to spend more than their credit’s value. Overall it’s a service with which retailers can engage their clients.”
In his view, online consignment platforms and shops offering similar services will coexist. “It’s up to customers to decide whether they want credit to be spent on new goods, thus going into stores, or fresh money to invest on other leisure activities and sell directly on e-tailers,” the entrepreneur said.
After jump-starting the project, which is officially kicking off at the beginning of February, Trombini has a busy 2022 ahead, he said.
Internationalization is key, and while Lampoo already generates 45 percent of its revenues outside Italy, and especially in the U.K., France, Germany and the U.S., he see greater potential in foreign markets.
At the same time, he’s consolidating the consignment site’s Italian business, with the opening of a second brick-and-mortar store planned for the third quarter of the year to flank the existing unit in Milan’s Brera district. On the operational front, Trombini is aiming to ramp up technology enablers to speed processes and become more competitive.

The Lampoo store in Milan’s Brera district.
Courtesy of Lampoo

After receiving two rounds of investment since its launch in March 2020, the most recent of 6 million euros last July, Lampoo is now looking at a third round to further spur growth. Trombini stayed mum about 2021 revenues, but he said they tripled compared to 2020 and are expected to make a similar jump in 2022.

The Trends That Dominated StockX, The RealReal in 2021 and What’s Next

The Trends That Dominated StockX, The RealReal in 2021 and What’s Next

Luxury consignor The RealReal and streetwear reseller StockX both dropped their latest trend insight reports Thursday, showcasing what’s hot and not in the resale world.For its report, The RealReal combed shopping insights of more than 24 million shoppers, comparing year-over-year data from January to November for the past two years. The company touted the stat that 40 percent of its shoppers are swapping fast fashion for resale with many more getting into the selling fold.
The RealReal president Rati Sahi Levesque attributes resale’s success to a cross-generational appeal, in the report, describing the behavior as a “handoff happening between generations” — one that’s aided by a desire for uniqueness.

And there’s no better place to begin than Gucci, a brand that is considered a gateway for first-timers, as The RealReal noted. The brand was the most popular for first-time shoppers and consignors alike.

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In 2021, Louis Vuitton, Gucci, Prada and Chanel were consistently in the top ranks for resale value. As for contemporary brands, Rag & Bone and Tory Burch took the lead.
But everything comes back around.
The RealReal noted ‘90s designers are being increasingly sanctioned into resale relevance with Jean Paul Gaultier dresses and Thierry Mugler skirt suits both up 70 percent in resale value. Per its report, a Gaultier dress can earn up to $2,100, while a Mugler skirt suit set can earn a solid $952 in resale value.
What’s trending now?
Vivienne Westwood corsets, vintage Prada coats and Missoni cardigans were in the trending mix. The RealReal urges shoppers ready to sell now to part with their Chrome Hearts Trucker hats, Patek Philippe Nautilus wares, vintage minidresses from Emilio Pucci (a designer who also got top play in StockX’s report), Chanel costume jewelry and Bottega Veneta Chelsea boots for maximum return on investment.
Meanwhile, Millennials still can’t get enough of the Fendi Baguette or Louis Vuitton Multicolore Monogram bags, perhaps stoked by its resurgence in “And Just Like That” and ensuing TikTok demand where #FendiBaguette alone has more than 2.7 million views. The LV Multicolore bags were a colorful reminder of Y2K peak, though the designs by Japanese artist Takashi Murakami were discontinued in 2015. But the 59-year-old’s cultural imprint carries on.
In StockX’s culture index report for 2022, Murakami earned the number-two placement for art prints, behind Obey founder and street artist Shepard Fairey.
On the sneaker side, Jordan continues to lead the top brands for StockX with the Air Jordan I sneaker being the top silhouette in total trades for the fourth year in a row. Nike followed Jordan in both brand ranking and top silhouettes. The Nike Dunk increased four places to take the number-two spot in top silhouettes — the biggest year-over-year jump — followed by the Nike Air Force I sneaker.
Adidas, New Balance and Converse rounded out StockX’s top five brands in 2021, while others like Bape, Reebok and Crocs showed promise on the platform. Crocs alone maintained an average price premium of 98 percent for the year.
Supreme remained the leader in apparel with an average price premium of 60 percent above retail, followed by Fear of God, Vlone, which climbed five spots, Cactus Jack, which fell two spots, and Nike landing fifth. The Yeezy x Gap blue hoodie and black jacket led the top collaborations for the year, followed by Supreme’s collaborations with Emilio Pucci and Tiffany. Telfar moved up 18 spots to reach the top 10 most-traded apparel and accessory brands.

In the year ahead, StockX believes everything from books to sports like tennis, racing, gaming and golf will take center stage.

Can’t Find That Holiday Gift? Check EBay!

Can’t Find That Holiday Gift? Check EBay!

While the supply chain is of great concern this holiday season for both consumers and retailers alike, the resale market hasn’t missed a beat having continued access to fashion, accessories and luxury items.Serving as a sort of ecosystem of its own, resale consumers are intrigued by shopping on eBay as they are recognizing the value of items in both the present and future. According to Charis Márquez, head of fashion at eBay, the continued access to fashion, accessories and luxury items meeting an increase in thoughtful consumers has created the “perfect storm” for the resale industry.
Notably, one of the strongest categories for eBay is sneakers, with the company’s recent data showing eBay’s sneakers category has continued to grow at double-digit rates. A pair of sneakers bought every 1.5 seconds on the site and the women’s sneaker category alone grew more than 80 percent over the past year.

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Fueling the sellers and buyers of the category, eBay recently launched its new eBay 3D true view technology, which allows shoppers to examine the item they’re browsing from every angle to mirror holding it in their hands. In an official statement, eBay said the new capability is crucial for people buying pre-owned items and looks forward to utilizing the technology for listings more in the coming months.
As the holidays get closer, Márquez shares insights on the future of resale in luxury, eBay’s growing space for buyers and changing consumer sentiment.
WWD: How has eBay seen buyers’ and sellers’ behavior change in the pandemic?
Charis Márquez: Everybody’s sort of in the game, you know, right now, and what we are seeing, and of the most interesting pieces, is this alternate asset class where we have now this generation that [says] I don’t have money right and I don’t know if I understand stocks and real estate that goes up and down but I do get this beautiful pair of shoes. [They] can understand and appreciate an item and that there will be some items that do have future value, that it’s more than just me wearing it today that it’s a long-term purchase that is really being looked at as kind of an alternate asset class right now by this generation.
For a while now we’ve talked about an openness just for resale and use, but I think it’s this element that people are building businesses. This generation is really building businesses out of it, whereas I think if you looked at a lot of the other generations, they were more saying, “I want a Rolex to say that I got this job” or “I want to have a designer bag when I turn, whatever age.” Now, it’s also [consumers saying], “I’m buying this because I know that if I do get sick of it after a certain amount of time, somebody will actually appreciate it later.”
WWD: What are shoppers looking for when they are shopping on eBay?
C.M.: Part of why our authenticity guarantee has been really important is because they are looking for items that they do believe will hold value. When we talk about this generation, they really are looking for investments.
For Gen Z, it’s just silly to buy new, right? Whereas my generation [says] “I don’t want this used T-shirt or sweatshirt,” but we’re the ones selling it. And then Gen Z buys it because it aligns with a value system.

In terms of what people are looking for, they do want to feel like they can trust the product that they bought so we’ve got an authenticity guarantee there. And for more expensive items like a Rolex, we also have the basic protections there that people are looking for but again, it’s really just about the unique and different that people are looking for.
When we think about transitioning into the holiday, I think — I wouldn’t say for the first time — but probably more prevalently people are open to pre-owned from a gifting perspective. I think people have always been, some people have been OK with it for themselves but now because of everything having the supply chain scarcity this, that, and the other, I think there’s an openness.
EBay is really well-positioned because we have all of those unique and different things. I’ve shopped for my kids because they’ll say something random and I don’t know where to find it. EBay is a great place for that just because we already have a lot of new and different things.
We’ve just seen so much happen in the world between being more purpose-driven, intentional, that I think the pandemic has just sort of turned all the beliefs we once had upside down. And that focus is bleeding into everything we do. And now looking at the supply chain, it’s just becoming a perfect storm of knowing you have to really think about this differently and knowing you can’t just go and wait for Black Friday and hope that I’m going to find what I need.
WWD: EBay has an entire section dedicated to luxury gifting for the holidays — how have you managed to drive luxury and where do you see it going?  
C.M.: In the end, when it comes to resale, you’re looking for something unique and different. And if you want to know where you’re going to find the biggest breadth and depth in terms of resale, you’re going to go to eBay. Even if you’re not as in love with our experiences as some other platforms, you’re just not going to find just the assortment. And people are looking for things that are unique and that are different, and that really are part of that self-expression.
For luxury, specifically, what’s been helpful for us is our authentication. That guarantee has been a game changer for us because it’s good for the buyer and the seller. We do have a lot of buyers that are sellers and they all kind of become part of the community and having that protection on both sides and kind of that intermediary party has made a huge difference in people saying, “Yes, I’m willing to try on eBay” and ”I feel comfortable if I choose to sell on eBay.” It keeps it within the ecosystem.

WWD: How does eBay encourage users to stay in its ecosystem?
C.M.: An element that’s really helped us kind of keep within the ecosystem is that we encourage continuing to sell after you’ve bought. We have an NFC-capable card that if you tap it with your phone, you can see it’ll take you straight to all of the information on it that was in the listing so that if you wanted to go back listed again, we make it super easy.
There’s less buyer’s remorse because we’re making it really easy if you do choose to resell it as well or if you just want to know the information on this handbag or sneaker. The NFC card is an actual physical little tag but having that digital document iskind of like when you buy a piece of artwork and you have that paper, now we have that digitally. That’s been really powerful for us.
WWD: How have sellers’ behaviors changed during the pandemic?
C.M.: We’ve definitely seen in the time of COVID-19, people building up their businesses. We have plenty of stories of people that had their regular job, were furloughed and then came to eBay and started selling sneakers, or trading cards because they had a bit of interest in a category and in the end, it became a real business.We have a seller that literally was a lawyer and is now making almost as much money as an eBay seller and is really trying to do that full time.
People are kind of just looking at their passion and we definitely are seeing more momentum in that. If we look at the past 18 months, it’s really been around more people just saying, “my closet actually may have some value, so can I create a little business out of it?”
WWD: How does eBay work with its sellers as partners?
C.M.: We connect heavily with them. It’s lots of events with them and we talk through data we went through the business study that we did with them. Anytime we have kind of new information, we really do share it with them in those categories and then we also get information from them.
From our CEO down we all spend time with sellers just understanding their overall pain points and then vice versa like them kind of talking to us about their trends. We had conversations with them about the supply chain to see if they were impacted by it. We’re very well connected and when we have those data points to share or updated terminology we suggest using, they really take it on.

These Brands Are Buying Into Resale — and Here’s Why

These Brands Are Buying Into Resale — and Here’s Why

The adoption of resale fashion has been swift and explosive, with brands one-upping each other in the name of sustainability, new faces — and good press.There are more than 50 fashion companies that have recently entered or invested in resale, including luxury brands like Burberry, mass market brands like Levi’s, retailers like Nordstrom, fast-fashion players like H&M and direct-to-consumer labels like Boyish Jeans. And traction has dramatically increased since early efforts in 2014.
Decades-old Swedish children’s clothing brand Polarn O. Pyret is one early bird, having first partnered with ThredUp in April 2014. Perhaps seeing the writing on the wall, fast-fashion giant H&M was an early investor in resale platform Sellpy in 2015, while a year later eco-athleisure brand Prana turned to zero-waste repair and resale with The Renewal Workshop.

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Many resale partners are being enlisted to help brands get into the space, in many cases, taking on the dirty work of reclaiming, inventorying, repairing, photographing, merchandising and listing used goods to give them a life beyond landfill.
The Service of Resale
On behalf of brands, marketplace partners like Fashionphile, ThredUp, Goodfair and The RealReal provide reselling, branded or white-label resale services such as closet clean-out bags. From there, there’s a host of players with similar sounding names offering other services to support resale.
Reflaunt, for one, is a website button that links to other resale marketplaces while Recurate is a pandemic newcomer specializing in peer-to-peer brand-owned resale, as is Treet. Treasuring the brand-owned resale experience, Trove and Archive (each helping brands operate low-cost branded resale) are also in the mix. On the other hand, start-ups like Kept Sku coalesce excess inventory from multiple brands to assemble resale “surprise boxes.”
Back in 2018, ThredUp introduced its Resale-as-a-Service (RaaS) business program, which facilitates modern resale for a number of brands and retailers all in the name of fostering “circular fashion and sustainability” rather than material benefit for the reseller as the company does not earn revenue from RaaS.
As per ThredUp’s S-1 filing, the RaaS partnerships serve as “marketing for us and our RaaS partners, building brand awareness, creating additional channels of supply and generating strategic benefits for us and our RaaS partners.” Today, the platform boasts 21 retail and brand partners, including legacy retail partners like Walmart, Macy’s, J. Crew-owned Madewell and J.C. Penney.
Reporting the strongest growth amid the pandemic, resale fashion saw a tipping point last year, with some 20 brands and retailers entering the space, among them Christy Dawn, Arc’teryx, Athleta, Banana Republic, Gap, Frye, La Ligne, Nordstrom, Abercrombie and Fitch, Hollister, Reebok, Phillip Lim, Walmart, Toad&Co., Frame, Cos, Gucci, Levi’s and Rent the Runway (which partnered with ThredUp for a resale component before going full throttle in June 2021, allowing a buy-now option on all of its pre-worn merch).

From 2014 to 2021, the pace of brand resale accelerated, with 2020 as the tipping point. Analysis of more than 50 fashion companies and timing of resale entry.

Why Brands Enter Resale
While each brand has its opinions on resale and its own inroads into it, the premise for entering resale is much the same to start — new customers, new streams of revenue and sustainability.

Launching its SecondHand vertical in October 2020, Levi’s used resale to get back old jeans from customers and ink new favor with Gen Z.
Speaking to the sweep of Gen Zers shopping secondhand, Levi’s chief marketing officer Jennifer Sey, said at the time: “They love the hunt. They feel they get something a bit more unique when they are shopping vintage and in this age when ’80s and ’90s retro looks are so in, they prefer to buy the real thing.”
Customers bring used Levi’s into a store where items are reviewed to determine their worth. Then a gift card is issued for between $15 and $25, applicable toward a future purchase. The denim is then priced from $30 to $100.
Since October 2019, M.M.LaFleur has been operating its clean-out bag partnership with ThredUp, but the women’s wear brand eventually launched its own in-house program called Second Act in partnership with Archive.
The brand found high engagement and high return on store credit through ThredUp but discovered only 4 percent of garments sent to ThredUp by M.M.LaFleur customers were M.M.LaFleur items, which, in the words of founder and chief executive officer Sarah LaFleur, “made us wonder if customers desired an alternative option.”
LaFleur said the decision to start Second Act was partly inspired by Eileen Fisher.
“We’d always looked up to Eileen Fisher and the sustainable ways her business encourages customers to recycle and resell their clothing. We had actually explored launching resale in-house several years ago (pre-pandemic), but taking in used garments would require a large operational lift, which we weren’t prepared to undertake,” LaFleur said. “When our customers experienced changes in their lifestyles or jobs, they often asked us about the best way to clean out their closets, while also saving money and reducing waste. This interest only increased as a result of COVID-19. We were also aware that there was a market for M.M. products on other sites, including third-party resale sites, Facebook and our Customer Slack Channel…[and] we’d seen a very positive customer response to our closet clean out workshops and content.”
The secondhand solution inspired more M.M.LaFleur women to shop quality on a price point — “as well as allowing her to sustainably clean out her closet (giving a dress a second life reduces the CO2 impact by 79 percent),” LaFleur said, adding that the “game-changer for us was the low operational lift offered to us via Archive, the peer-to-peer platform we use to power Second Act.”

So far, 75 percent of M.M.LaFleur cashouts are for store credit, and on average, customers spend 3.1 times the credit they receive, according to the brand. And the response from customers has proved the effort worthwhile.
Nordstrom also tested resale with its temporary “See You Tomorrow” pop-up (powered by Trove) before fully entering the space with thrift marketplace Goodfair in January. The partnership aims to democratize pre-loved items with Goodfair vintage picks priced between $40 to $80. Items are refreshed frequently and live permanently on-site under Nordstrom’s Sustainable Style vertical.
But how are these programs shaping up?
In surveying a handful of brands on resale sentiment, WWD found one brand had gained 25 percent new customers from its resale partnership and three times the spend on store credit. Another brand responding to the survey said it plans to increase investment in resale for damaged items (expanded from just peer to peer). One brand agreed it would continue its marketplace partnership, and another teased the launch of its own resale channel — separate from a third-party provider.
The brand, soon to launch its own resale channel, said: “We’ve definitely been able to drive new customer acquisition.…[Resale] is a good onramp for customers who are more price-sensitive and can help fund their purchases with the sale of older clothing.”
This onramp is already being noted by platforms like The RealReal. In one year of partnering with Stella McCartney, The RealReal reportedly drove a 65 percent increase in customers selling Stella McCartney items.
White-label Resale Is Red Hot
White-label resale services are one solution brands seek to help them control their entire resale experience — without much additional effort behind the scenes. Companies like Trove, Archive, Reflaunt, Recurate, Treet and Kept Sku are all aiming to win brand buy-in with their services.
Former Gap Inc. executive Wilson Griffin and former Retail Industry Leaders Associations executive Adam Siegel, launched Recurate in February 2020 as one such white-label resale solution. The company scored a $3.25 million seed round in April to take its marketplace shopping experience (which conveniently integrates into a brand’s website complete with imagery, descriptions and shopping cart) to the next level.

“In the rapidly developing recommerce market, brands should be taking steps to own their resale market,” said Griffin, Recurate’s chief operating officer. “Consumers have voted with their dollars to make resale a regular part of their buying habits, so brands should be doing everything they can to make resale a seamless part of their value proposition. Not only because it’s the most sustainable way to shop, but also because it is the key to unlocking additional revenue and loyalty.”
Saying it is still the early stages of brand-led resale, Griffin noted: “The secondhand market will continue to grow and brands that aren’t providing their customers new models like resale and refurbishment will fall behind. Consumers will ultimately decide which models and experiences they prefer, and we believe the programs that bring the most benefit to the individual seller and buyer will succeed.”
In 2021, Momentum Continues
Already this year, more than 14 brands have entered the resale market, including direct-to-consumer brands like Boyish Jeans, Coclico Shoes and Époque Évolution, which partnered with Treet, ​while Cuyana, Vera Bradley and Fabletics have partnered with ThredUp.
Kering-owned Alexander McQueen partnered with Vestiaire Collective, just before Kering announced a $216 million investment in the reseller in March. Resale partnerships can come before or after initial investments are made, as Richemont, for example, snapped up Watchfinder in 2018, before rolling out its resale partnerships at Net-a-porter and Mr Porter this July.
August has already proved eventful, with new partnerships being forged in-store and online.
Fashionphile entered a long-term partnership with Neighborhood Goods this month, offering a physical presence to its luxury goods. Previously, the reseller saw Neiman Marcus take a minority stake. Meanwhile, New Balance launched its “New Balance Renewed” program with The Renewal Workshop. H&M recently launched its own “Rewear” resale marketplace in Canada, and URBN announced its “Nuuly Thrift” platform anticipated for fall 2021.
While none of the brands that have entered resale, or recently invested in it, have demonstrated a decoupling from volume-based growth, which is a nuance circularity experts tend to justifiably harp on, resale has proved at least one viable step toward fashion realizing greater sustainability.

The Resale Market: Who’s Playing, Who’s Leading, Who’s Emerging

The Resale Market: Who’s Playing, Who’s Leading, Who’s Emerging

While secondhand is nothing new, incoming and existing resale players are changing faster than the listings in a Gen Zer’s Depop shop.The space today is best described as a playground of peer-to-peer selling apps, managed marketplaces, re-commerce and logistical powerhouses alongside the age-old brick-and-mortar charity shops and retailers getting in on the action.
To isolate resale’s players, leaders and newcomers, it’s worth taking stock of the market and its movements.
Setting the Resale Scene

The average reseller isn’t venturing over to glossy marketplaces, but may actually be engaging on a platform like Facebook Marketplace relinquishing goods to nearby buyers in a shabbily shot photo and minimal merchandising — despite the attention around the newest and most exciting platforms.

That being said, ever since The RealReal’s initial public offering and sustainability’s increasing trendiness, industry and investor eyes have been locked on resale and lookalike marketplaces spawned thereafter.

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Marketplaces typically fall into three formats: traditional (like flea markets), managed (The RealReal, StockX, ThredUp, Rebag) and peer-to-peer marketplaces (Etsy, Depop, Poshmark, eBay).
Of course, the list is extensive as more players emerge.
There are also the re-commerce and logistics partners to consider, among them Trove (handling the behind-the-scenes resale for brands like Patagonia, REI and Eileen Fisher); Recurate (powering direct-to-consumer peer-to-peer marketplaces for brands like Mara Hoffman, Frye and Re/Done), and newcomer Treet, which launched in 2021 and counts Boyish Jeans in its mix.
And who can forget the long-standing thrift chains?
Nonprofits like Goodwill (hoping to be a $1 billion resale site), Salvation Army and Oxfam, for-profit shops like Savers (one of the largest for-profit thrift chains in the world, averaging $1.2 billion in revenue) and Buffalo Exchange are also reigniting their value proposition as fashion resale burns bright.
Analysts say resale’s potential is not to be underestimated.
“Fashion resale is a dynamic market, and I believe it has the potential in the long term to become 20 percent or more of the total apparel and footwear spending,” said Boris Shepov, research analyst and portfolio manager of Fidelity Select Retailing Portfolio at Fidelity Investments.
Fidelity is a top shareholder of resale’s big three marketplaces — The RealReal, Poshmark and ThredUp, which went public in succession.
But what’s ushering in the category’s explosive growth?
Shepov attributes it to resale’s “cool factor” as well as rising consumer awareness.
“We see that consumers want to save money, protect our planet and express themselves through fashion. Resale enables that through the ‘treasure hunt’ buying experience at a fraction of the new merchandise cost and with a wide assortment of often like-new merchandise,” he said. “Additionally, my research finds that the carbon emission footprint of resale merchandise is only a fraction of that of new merchandise. Moreover, adoption is accelerating further as top brands and retailers recognize this paradigm shift and expand into resale.”

Of the leading fashion companies by economic value creation, 30 percent of fashion players are designating funds to resale.
What Defines Resale’s Leaders
The “treasure hunt” has become a delineating factor for resale’s movers and shakers. Public financial reports spell out inventory as gross merchandise volume, or GMV, a measure of the total transactional value of goods and services puttering along the marketplaces, which is an indicator of who is actually getting the goods.
EBay leads the way with $27.5 billion in transactions happening in its most recent financial report. Following eBay is Mercari, at $7.15 billion (for its mainstay Japanese business; in the U.S. it’s $1.13 billion), Etsy at $3 billion (which it reports as gross merchandise sales or GMS), StockX at $1.8 billion, Poshmark at $449.6 million, The RealReal at $350 million and 1stDibs at $107 million.
Facebook Marketplace is a popular destination for everyday resellers. Facebook overall boasted an impressive $26 billion in total revenue and 250 million monthly users for its platform in the first quarter, but the volume of its marketplace transactions is harder to track down because the company doesn’t report it separately.
Although millions of marketing dollars are put up by platforms to lure buyers and sellers, that may not warrant stickiness in the community after all. Investors are keener to examine active buyers within a platform’s community.
As Poshmark founder Manish Chandra puts it, bundling (or styling outfits for individuals) and live virtual shopping “Posh Parties” are just two social elements that liven the Poshmark community. On average, Poshmark users spend 27 minutes a day on the platform, and the community counts more than 30 million active users, but only 6 million users are actually buying.
While Facebook Marketplace counts 1 billion members, there are closer to 250 million monthly buyers, which is not far from eBay’s 187 million monthly active buyers. Etsy is a force, too, counting 90 million active monthly buyers. The list goes down with Mercari (15 million), Poshmark (6 million), ThredUp (1.29 million) and The RealReal (687,000) among the public resale companies garnering consistent buyer traction. The RealReal’s founder Julie Wainwright often speaks to the flywheel effect of turning buyers to consignors, enabling the company to surpass the milestone of $2 billion in cumulative consignor commission payouts in the first quarter of 2021.

Comparing the aforementioned platforms, however, isn’t an apples to apples contrast as those like Facebook Marketplace, eBay and 1stDibs count much more than apparel in their stock, whereas those like The RealReal, Poshmark and ThredUp are focused on fashion. But the disparity between active users and a captive audience prompts the question: are resellers really craving community or profit? At the end of the day, money talks more than members.
“Resellers often have two priorities: the community and making money,” said Alex Shadrow, partner and chief operating officer of List Perfectly, a software for resale entrepreneurs to maximize efficiency and profit by bulk crossposting resale listings across 12 popular peer-to-peer marketplaces including eBbay, Poshmark, Mercari, Depop, Etsy, Shopify, Instagram, Facebook Marketplace, Kidizen, Grailed, Heroine and Tradesy.
Mercari has even promised to build out two physical locations in Japan for its seller community called “Mercari Stations” as well as unmanned mailboxes for shipping ease (called “Mercari Post”) to bolster its community appeal. Depop has all but become a meme with its flair for Y2K fashion.
While relative resale newcomers like The RealReal boast over a dozen stores now, brick-and-mortar space is still an area where old-school thrift chains dominate. For-profit thrift chain Savers counts more than 300 thrift stores, while Oxfam tops 1,200 stores and Goodwill is well over 3,000 stores worldwide.
“It’s important for sellers to understand that each marketplace brings its own unique audience and customer base,” said Shadrow, who prior to List Perfectly founded an on-campus, closet-sharing app called Relovv. “This is why cross-posting to multiple marketplaces with List Perfectly is so important. For example, Depop is the leader in Gen Z purchases with bestsellers including ’90s vintage and streetwear. Meanwhile, Poshmark is the leading fashion marketplace amongst Millennials and beyond. EBay remains the largest marketplace for all things resale across hundreds of categories from vintage clothing to furniture, electronics, antiques and collectibles and lots more. Conversely, Etsy is reserved for artists and small brands that sell their own original creations. Each marketplace has its own unique bestsellers and customer bases, and cross-posting is the key to reaching all of them.”

Shadrow has a point that may actually validate Chandra’s social commerce angle further: marketplaces are unique and unpredictable — a show like “Gossip Girl” or biopic like the anticipated “House of Gucci” will drive up interest in vintage wares. It’s then that a vintage bag or accessory becomes a hot commodity, and the investment payoff will determine where he or she goes to list — not the community.
That being said, Shadrow believes the List Perfectly community is making gains with its #SellerCommunityPodcast and seller competitions.
Another advantage to resale is its built-in sustainability benefit, but as competition grows for resale the edge needs sharpening.
Secondhand poses an 82 percent reduction in carbon footprint compared to new clothing, according to market insights firm GlobalData Retail. Carbon emissions avoided are a standard metric for resale platforms. Pre-loved platforms like The RealReal, Depop, ThredUp, StockX, eBay and more have published proprietary resale or “re-commerce” reports to the excitement of investors and trendy-savvy consumers alike, etching out environmental and social benefits of thrift.
With the urgency of the climate crisis, science rules in resale as in retail.
Out of the public (and private) resale companies analyzed by market share, handmade and vintage goods marketplace Etsy and veteran used goods seller eBay are the standout sustainability leaders by way of formalizing their aims by signing on to things like the Science Based Targets Initiative.
While eBay was late to the game in launching a formal re-commerce report — which it debuted only last year despite having a decade’s head-start on newcomers like ThredUp or The RealReal — the company led the way in committing to a Science Based Targets Initiative in January 2021. The resale veteran also published its first Task Force on a Climate-Related Financial Disclosures investor report reinforcing its increased momentum toward climate transparency and action. In the first quarter, the company revealed a $25 million investment in the Clear Vision Impact Fund to bolster small and medium-sized businesses that are based in, or support, underserved communities nationally.

Following suit in April, Etsy committed to science-based carbon emissions reduction targets in line with the SBTi and the prescribed 1.5-degree Celsius trajectory set by the landmark Paris Agreement, a global blueprint for keeping temperature rise under safe limits.
However, whether it’s an electric vehicle, solar power or resale clothing, the argument that the alternative is simply better than the norm is falling away to favor clear-cut results.
“Nowadays, [the bare minimum claim] doesn’t cut it anymore. People will no longer look at emissions avoided or landfill avoided, but active progress toward more sustainable textiles and products,” said Joachim Klement, a London-based investment strategist at Liberum Capital. Fast fashion has obviously “aggravated that [disposable] philosophy,” he added.
“[Retail analysts] have started to look at the entire ESG factor as it relates to ‘Are they reducing greenhouse gas footprint and track record?” Klement said, noting that resale platforms will have to prove their environmental, social and corporate governance performance credibly, year after year, as with retailers. Margins, growth expectations, competitive pressures, volume of goods, authentication or third-party verification sourcing occupy the list of considerations for resale, too. (Some platforms, like Los Angeles-based peer-to-peer marketplace Tradesy and Mercari, have even touted the environmental gains of virtual authentication services as proof of the competitiveness in the space.)
As with Fidelity analyst Shepov, Klement finds material risks and increasing public pressure are changing the tune of the industry.
“The entire world is in a big transition in the sense that we are all increasingly becoming aware of how we did business and how we ran the world in the past. It has become evident that climate change has serious impact whether its heatwaves, wildfires, floods, you name it, it is evident all over the world,” Klement said, calling the issue “extremely multifaceted.”
The Emerging Resale Players

Funding in private resale has gone wild.
Private resale companies hold a lot of promise if Vinted, StockX, Vestiaire Collective, Goat Group or Depop are any indication (the companies all topped $100 million in total funding, with Vinted raising an impressive $562.3 million in all, grabbing a recent $4.2 billion valuation).

StockX isn’t far behind with a $3.8 billion valuation.
“Money-driven bankers will finance anything as long as there is a reasonable return,” said Klement. But he sees the potential for the green bubble to burst in resale, and has said “green stocks will eventually suffer from excessive investor optimism and end in a bubble and crash.”
Because of their notable investors, Vestiaire Collective (Kering), Sellpy (H&M), Stadium Goods (LVMH Moët Hennessy Louis Vuitton), Watchfinder (Compagnie Financiere Richemont), Thrilling (Closed Loop Partners) and Fashionphile (Neiman Marcus) are ones to watch closely regarding further partnerships.
Case in point: After first investing in Watchfinder in 2018, Richemont (which owns Yoox-Net-a-porter Group) announced Net-a-porter and Mr Porter’s entry into resale with pre-owned timepieces from Watchfinder in July, rubber-stamping the evolution.
While the company is no newcomer, having been founded in 1999, Fashionphile is also on the move. The company scooped up a cumulative $38.5 million in funding as well as property in Chelsea, Manhattan for a 60,000-square-foot luxury re-commerce center in June; by August the company jumped into physical resale with Neighborhood Goods.
More resale players have emerged, while amassing new funding and cult followings in their not-so-niche verticals. Specialized resale platforms are cropping up for outdoor gear (Requipper formerly called “Switchback”), formalwear (Queenly), furniture (Kaiyo) and kids’ wear (Kidizen and Dotte among them).
Queenly, in its latest funding round announced last month, has scored $7.1 million in funding to date.

EXCLUSIVE: Kardashian Kloset to Open First Retail Store in Las Vegas

EXCLUSIVE: Kardashian Kloset to Open First Retail Store in Las Vegas

Kardashian Kloset is getting into brick-and-mortar.
The Kardashian-Jenner resale site is opening its first retail location in Las Vegas at the strip’s new Resort World Hotel. The location will open on June 24, the same date as the hotel’s opening.
“Las Vegas is an international destination,” said Cynthia Bussey, the co-owner of the site and Kris Jenner’s cousin. “And this will allow our customers and fans from all over the world to experience first-hand Kardashian Kloset in person.”
The location will offer apparel and accessories items from the Kardashian-Jenner family’s closets that are already available on the e-commerce site, with new pieces added weekly. The Kardashian-Jenner family also has plans to expand their offerings beyond fashion once the store is open.

Kardashian Kloset launched in October 2019 and has quickly gained a loyal customer base, spurring a trend on YouTube of influencers posting unboxing videos with their Kardashian Kloset hauls and presenting side-by-side photos of themselves with the Kardashian-Jenner family member wearing the same look.
Since launch, Kardashian Kloset has had a 40.3 percent repeat customer rate and has sold nearly 9,000 pieces. The site’s success can be attributed to the Kardashian-Jenner family and their social media influence. According to the company, an Instagram Story post from Kylie Jenner last month about Kardashian Kloset drove over 250,000 people to the site and increased sales by 400 percent that weekend.

“Everyone is obsessed in some way, shape or form with the Kardashians,” Bussey said. “With what they do, with what they wear, where they go, and they follow them. I think that’s been the success of [Kardashian Kloset] because there is an obsession out there.”
Kardashian Kloset is broken up into “collections” from each Kardashian-Jenner family member. The site first launched with three collections from Kris Jenner, Kim Kardashian and Kylie Jenner, and now offers collections from all sisters and sections for kids and men’s offerings from an array of designer labels.
The e-commerce site is curated by Bussey and the Kardashian-Jenner family, who offers up pieces they no longer want to keep and others that were requested by customers.
“Kris has always said that she’ll wear something on [“Keeping Up With the Kardashians”] and people see it and I get lots of emails going, “can you let me know when Kris’ Diane von Furstenberg green dress with the fringe she wore in St. Tropez with Dee Hilfiger is up?’” Bussey said. “We get a lot of requests.”
Bussey also stated that the family tries to make sure they don’t post anything on Kardashian Kloset that was gifted to them, but that sometimes pieces “slipped through the cracks” as a mistake.
In June 2020, designer Christian Cowan called out the Kardashian-Jenner family for posting one of his dresses on the e-commerce site — in Khloé Kardashian’s collection — for $1,300 that he claimed was a runway sample. The dress was later removed from the web site.
Prices on Kardashian Kloset go for as low as $25 for athleisure offerings, like New York Mets-branded sweat shorts in Kim Kardashian’s collection, and as high as $55,000 for a rare Hermès Birkin bag from Kylie Jenner’s collection. While each Kardashian-Jenner family member and Bussey donate to a range of charities on their own, the Kardashian Kloset site does not have a charitable component.

This is the family’s first storefront for Kardashian Kloset, however, it’s not their first venture into brick-and-mortar. The Kardashian sisters famously ran their fashion boutique Dash in the early Aughts, which was regularly featured in their reality TV show. The brand had locations in Los Angeles, Miami, New York City and Southhampton, N.Y., but all have since been closed.
Kylie Jenner has also gotten into retail with her Kylie Cosmetics brand, hosting pop-up stores in L.A., New York and San Francisco over the last few years.
More details on the Kardashian Kloset Las Vegas store are expected to be revealed closer to the opening date on the e-commerce site.
Read more here:
How Kylie Jenner’s Cosmetics Brand Became a $1 Billion Business
Kylie Jenner Is Eyeing the Swimwear Category 
How Kim Kardashian Built Her Fashion and Beauty Empire 

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