Building the market: The growing number of retailers entering the space will build awareness and interest in secondhand goods.
- More retailers accepting trade-ins should expand the selection of available secondhand items, which will attract more consumers to resale.
- Resale programs create a flywheel effect, as buyers become sellers and vice versa. For example, Poshmark and thredUP have both reported that nearly half of their sellers are also buyers.
Staying on brand: Sustainability is at the heart of the brand positioning for outdoor names such as Patagonia, The North Face, and REI.
- That puts greater importance on ensuring their efforts are authentic. Patagonia and The North Face were among the top-ranked brands in Kearney’s Circular Fashion Index, which measures a brand’s efforts to extend the life cycle of a product on both the primary and secondary markets.
- REI is also expanding the lifespan of products via gear rentals. Nearly 100,000 customers rented gear at REI last year, the retailer said.
The big takeaway: The timing is right for outdoor gear brands to make significant moves into resale.
- Supply chain challenges are making new products harder to find and more expensive.
- At the same time, the discretionary incomes of Gen Z and younger millennials—the two demographic groups most interested in, and committed to, sustainability—is on the rise.
- If retailers can deliver a strong customer experience—both on the trade-in and purchase ends of the transaction—they could create a significant channel that could drive long-term growth.