Fashion brands

Recurate technology platform puts the power of resale in the hands of fashion brands

Second-hand resale is by far the hottest segment of the global fashion market. Over the next five years, apparel resale is expected to grow more than three times faster than the primary market, from $96 billion in 2021 to $218 billion by 2026, according to the latest Thredup Resale report, l most reliable study on fashion resale.

And in the second-hand fashion market, online resale is growing the fastest, expected to reach over 50% of the market by 2024 and almost quadruple by 2026. To date, Third-party marketplaces, such as Poshmark, Vestiaire Collective, eBay, The RealReal and Thredup, received most of the largesse.

While some brands have established their own resale programs, like Patagonia, Eileen Fisher, Lululemon, and REI, other brands that want to get in on the action have partnered extensively with Thredup using its Retail-As-A-Service offering. . Macy’s, target

TGT
and gap

GPS
are some of the best known names.

Now, Recurate offers brands another alternative. Recurate is a technology platform that allows brands to enter the ground floor with their own fully integrated reselling capability on their e-commerce sites. And the service is not only limited to fashion, accessories and shoes, but also to electronics, outdoor gear and equipment companies.

Founded in 2020 by CEO Adam Siegel and COO Wilson Griffin, the company just secured $14 million in Series A funding, bringing its total outside investment to over $17.5 million. The funds will be used to streamline brand onboarding, improve data analytics capability, and find solutions for brands to resell unsold inventory and product returns, as well as explore auctions and other recycling opportunities.

“Recurate was founded to easily and seamlessly integrate resale into every commerce experience, increasing sustainability, customer loyalty and revenue for our brands,” Siegel said in a statement.

Jump Capital partner Yelena Shkolnick, who led this investment round, added, “We expect the ease of shopping and listing products through brand sites to bring brands many new customers, helps them retain existing customers and ultimately brings millions of customers to the flyer. economy.”

Unlike repurchase programs where the brand receives inventory from sellers, processes it, warehouses it, and ultimately ships it to the next buyer, Recurate supports peer-to-peer resale.

Similar to Poshmark or eBay, under the peer-to-peer model, the seller lists and ships their items directly to the buyer. Recurate claims this model is the most scalable for a brand with minimal upfront and ongoing costs and allows sellers to get the most out of their product.

Recurate solves one of the weaknesses of the peer-to-peer model: authentication. It verifies all listings and provides digital ID authentication. Its customer support team also handles queries and disputes.

But peer-to-peer models offer a key benefit to brands: more interaction and engagement with customers. Customers are encouraged to come to the brand’s site not only to make a new purchase but also to pass on a previous one. This puts a new spin on the traditional definition of the circular economy.

“In the brand reselling model, there are so many opportunities to deepen the connection between the brand and the customer story and build community,” Griffin shared with Business in vogue. “This is where we see brand resale fitting into the broader business that these brands are developing.”

So far, Recurate has more than 45 brands that have subscribed to its service, including Steve Madden (Re-Booted), Frye (The Frye Exchange), Ministry of Supply (Infinity Resale) and Mara Hoffman (Full Circle Marketplace). And the company expects the number to grow to more than 100 partners by the end of the year.

CEO Siegel sees the Recurate platform as the natural evolution of the resale market, from third-party platforms to brands taking a stake in the lifecycle of their products. And it gives brands a way to provide customers with additional benefits from their ongoing relationships with them, essentially putting brand loyalty on steroids.

Calling this phase Resale 2.0, he said, “Resale 1.0 was third-party marketplaces. They made it cool and proved that there is a real market. Now brands recognize that there is an opportunity. They see their products being sold on third-party platforms and wonder why can’t we take advantage of them? »