Trove, a leading resale specialist, has recently unveiled its inaugural report titled “Brand Resale Index: Defining The Resale Experience.” This comprehensive report aims to provide a thorough analysis of the resale market and assess the adoption of best practices. While acknowledging the potential for growth in this sector, the report also emphasizes the need to make the resale industry sustainable and environmentally friendly.
The Brand Resale Index acts as an annual benchmark for measuring the progress of the industry regarding brand resale. It evaluates the performance of 40 prominent brand resale programs across sectors such as fashion/apparel, outdoor, footwear, and luxury.
Collaborating with OSF Digital on the research for this report, Trove’s founder, Andy Ruben, emphasizes that the resale market is currently at a significant turning point, much like e-commerce was two decades ago. Ruben notes that global resale is valued at $100 billion and is growing at a rate five times faster than traditional retail. Projections suggest that by 2030, resale will represent 23% of all retail, reaching a value of $250 billion by 2027. Ruben believes that brands have a substantial opportunity to thrive in the resale market and states that it is no longer a matter of “if” but “how” they will participate.
To assess brands, the Brand Resale Index examines 147 criteria encompassing brand positioning, commerce, and trade-in experiences. Environmental sustainability benefits of the resale business model are also taken into account. The report highlights that luxury brands have significant potential for growth through branded resale. However, it notes that outdoor brands are currently at the forefront in terms of maturity in the index. Trove explains that the alignment between the resale mission, customer values, product durability, and higher price points makes outdoor brands well-suited for success in the resale space.
In terms of growth, fashion/apparel and footwear experienced the most considerable expansion in resale over the past year. The report points out that footwear brands have successfully overcome the challenge of selling open-box items. It further recognizes the top performers in resale, with REI leading overall, Arc’teryx leading in outdoor, Amour Vert in fashion/apparel, On in footwear, and Philip Lim in luxury.
The report underscores the importance of presentation and user-friendliness in the resale market. Brands’ ability to present secondhand items to customers and seamlessly integrate the resale experience with existing commerce channels plays a crucial role in determining the level of friction in the purchasing journey. Additionally, it raises the concern that only 25% of brands allow customers to combine purchases of new and pre-owned items in the same cart, highlighting an area for potential improvement.
Furthermore, the report recognizes the value of seamless trade-in experiences in unlocking the estimated £2.1 trillion worth of idle branded items in customers’ closets, while simultaneously building brand loyalty. However, Trove cautions that not all brand resale programs are sustainable, as some primarily incentivize new product purchases, potentially undermining their sustainability claims.
Overall, the Trove Brand Resale Index brings attention to the growth potential of the resale market while identifying areas for brands to enhance and create a more sustainable and customer-centric industry. As the sector is projected to experience significant growth in the coming years, brands have a unique opportunity to establish themselves as leaders in the resale market.
Useful links:
1. Resale Global: This website provides information and resources on the resale market, including trends, news, and insights for industry professionals and consumers.
2. thredUP: thredUP is an online consignment and thrift store marketplace. It offers a wide range of secondhand clothing for women, men, and children, promoting sustainable fashion consumption.
