In recent years, the fashion industry has witnessed a significant shift, with resale becoming one of the biggest trends in the market. Financial concerns and growing awareness of sustainability are driving consumers to explore resale marketplaces more than ever before. What was once a niche market is now a rapidly growing sector, with resale growing 11 times faster than traditional retail, according to Recurate, a platform helping brands build their own resale marketplaces.
The statistics are striking—nearly 75% of consumers worldwide report shopping resale, and the number of brands offering their own resale platforms grew 3.4 times from 2022 to 2023. As the resale market continues to expand, it’s estimated that the global market could be worth as much as $350 billion by 2027, with $70 billion of that coming from the U.S. alone, according to ThredUp, a leading fashion resale marketplace.
The Rise of Resale: A Shift in Consumer Behavior
Resale is no longer just a trend; it’s a movement that’s reshaping the fashion industry. Clothing and shoes were the top resale categories in 2023, with nearly one-third of U.S. consumers purchasing secondhand clothing within the past 12 months. Major fashion retailers are taking notice and adapting to this change.
Carhartt, known for its durable jackets, is among the latest to join the resale revolution. In early 2023, the brand launched “Carhartt Reworked,” a resale pilot program that began accepting trade-in items at 35 of its stores in July. By early 2024, Carhartt had expanded the program to include mail-in trade-ins, offering items that are like new, slightly worn, or broken in. The backend of this program is managed by Trove, a resale-as-a-service company that also operates platforms for Patagonia, Lululemon, and Eileen Fisher. Trove’s business grew 50% year-over-year in the fourth quarter of 2023, a clear indication of the growing demand for resale options.
ThredUp, another leader in the resale-as-a-service market, operates more than 50 branded resale platforms, having added 11 brands in Q2 of 2023 alone. Their revenue increased by 8% year-over-year in Q2 2023, further proving the resilience and growth of the resale market. But it’s not just online platforms that are thriving; physical resale shops are also experiencing a boom. The Winmark Corporation, which operates several secondhand retail stores such as Once Upon a Child, Play It Again Sports, and Music Go Round, brings in over $39 million per year in net income. In total, there are approximately 25,000 secondhand stores across the country, generating $15 billion annually—a figure that the National Association of Resale Professionals predicts could double this year.
The Role of Proactive Engagement and Clienteling in Resale
As the resale market continues to grow, brands are recognizing the importance of proactive engagement and clienteling to make the resale process faster and easier for consumers. In a market where the competition is fierce and the options are abundant, creating a personalized experience for customers is key to standing out.
Proactive engagement involves reaching out to customers before they even think about reselling or purchasing secondhand items. This could be through personalized recommendations, reminders about trade-in options, or exclusive offers for loyal customers. By staying ahead of the curve, brands can capture the attention of consumers and guide them toward their resale platforms.
Clienteling, on the other hand, takes this a step further by creating a more personalized and tailored shopping experience. For instance, when a customer purchases an item from a brand, the retailer could follow up with suggestions on how to extend the life of that item through trade-ins or resale. By understanding the preferences and needs of their customers, brands can offer solutions that are not only convenient but also aligned with the consumer’s values, such as sustainability and cost-effectiveness.
For example, Carhartt’s Reworked program could engage customers by offering them insights into the value of their trade-ins and suggesting potential resale items that match their style and needs. Similarly, ThredUp’s branded platforms could leverage clienteling to offer personalized shopping experiences, guiding consumers through the resale process with ease and efficiency.
Why Clienteling Matters in Resale
Clienteling in the resale market isn’t just about boosting sales—it’s about building trust and loyalty. When consumers feel that a brand understands their values and offers solutions that align with their lifestyle, they are more likely to return and engage with that brand. This is especially important in the resale market, where the success of a platform relies heavily on repeat customers and word-of-mouth referrals.
Moreover, clienteling can help streamline the resale process, making it faster and more efficient for both the seller and the buyer. By providing personalized recommendations and proactive engagement, brands can reduce the time it takes to resell an item, increase the likelihood of a successful transaction, and ultimately enhance the overall customer experience.
Looking Ahead: The Future of Resale and Clienteling
As the resale market continues to grow, the role of clienteling and proactive engagement will become even more critical. Brands that invest in these strategies will not only see faster resale cycles but also build stronger relationships with their customers, driving long-term loyalty and success.
In a world where sustainability and financial concerns are top of mind for consumers, the brands that can offer personalized, efficient, and meaningful resale experiences will be the ones that thrive. As we look to the future, it’s clear that the combination of resale and clienteling is not just a trend—it’s the future of fashion.
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