Fashion brands

More and more fashion brands accept in-house resale

Fashion brands are picking up resale again, after seeing a host of players go big in the booming “pre-loved” segment that’s putting green in clothes – and cash registers.

Resale as a service (Raas) accomplishes several things for apparel and accessories manufacturers, first and foremost the continued profit of items they originally made and sold in other channels. In February, fashion news site Fashionista reported on the trend, opening up about how fashion house Oscar de la Renta looked at the third-party resale market and didn’t like what ‘she saw.

The report said it was “shattering for Oscar de la Renta’s team to see how the brand was misrepresented by third parties: items were mislabeled, there was a question of authenticity – in overall, it wasn’t of the same caliber as the physical shopping experience the brand prides itself on offering.” This brought the pre-owned Encore platform into November. Logistics and payments handled by the resale site Archive, which builds resale platforms and experiences for brands.

Read more: Oscar de la Renta adds vintage items to its resale offerings

“Since launching in February 2021, Archive has quickly amassed notable funds and customers,” news site Modern Retail reported in January. “In total, Archive has raised nearly $10 million and counts brands like Oscar De La Renta, The North Face and Dagne Dover among its clients. In exchange for an initial setup fee and a commission on subsequent resale sales, Archive sets up subsites for these resale-dedicated brands.

But the challenge, this coverage adds, is driving consumers away from established multi-brand retail marketplaces, like Depop, ThredUp and Poshmark.

See also: Luxury brands are racing to own the resale experience

reCommerce platform

Trove is another company that helps brands get up to speed with their own reselling efforts. The company closed a $77.5 million Series D funding round in August.

“ReCommerce will represent 14% of the apparel, footwear and accessories market by 2024, or approximately $60 billion, compared to approximately 7% in 2020,” the press release said at the time, adding that “Trove provides the technology platform and logistics brands need to control their own recommerce channels, empowering them to take ownership of their customer relationships and data.”

Yoox Net-A-Porter (YNAP) partnered with recommerce technology company Reflaunt in 2021.

According to a YNAP press release, “Reflaunt’s technology powers the entire customer journey to ensure that contributing to the circular fashion economy is as easy as possible, offering complementary services such as product collection at the customer home, digital product authentication, price recommendation and photography management professionals.

See also: Yoox Net-A-Porter launches luxury resale line for men and expands beyond the UK

It’s no wonder big names in retail want to get in on the action.

In April, Target partnered with thredUP on reCommerce for the second time, following a test in 2015.

Read more: Target is testing the second-hand market with the ThredUp partnership

“A Target spokesperson said the company decided to partner with ThredUp again to capitalize on customer interest in value and sustainability,” CNBC reported. Target’s new webpage on ThredUp’s website is labeled as a beta test. It includes around 400,000 pieces at prices up to 90% off.

Lululemon announced an expansion of its Like New resale business on Tuesday (April 12).

See more : Lululemon expands US resale program

“Built on a circular pattern, lululemon Like New extends the life of the product that was built to last and ensures that every item is put to full use,” the company said in a press release. “Through the program, lululemon customers nationwide can redeem pre-loved lululemon apparel in exchange for an e-gift card at any of 390+ participating U.S. stores and purchase resale merchandise online at likenew. lululemon.com.”

Read also: Retailers use AI to build trust in second-hand luxury and sneaker sales

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