Shopping for and promoting secondhand vogue is already a mainstream exercise, with analysis from BoF Insights revealing that over half of customers in main Western markets like France, Germany, the US and the UK have shopped resale earlier than. And there’s room to develop: BoF Insights initiatives that within the US alone, the secondhand vogue market may enhance from an estimated $27 billion in 2020 to $67 billion by 2025.
Nevertheless, regardless of resale’s momentum, profitability has thus far been elusive, even for the most important platforms within the area, akin to The RealReal, ThredUp and Poshmark. Not one of the three, that are the one publicly listed resale platforms within the US, had been worthwhile as of the fourth quarter of 2021.
On the newest BoF LIVE, BoF chief correspondent Lauren Sherman, senior retail correspondent Cathaleen Chen and Diana Lee, BoF Insights director of analysis and evaluation, talk about resale’s pursuit of profitability in an more and more aggressive subject. The BoF LIVE panellists mentioned the wave of latest gamers within the area, whereas noting the rising variety of manufacturers and retailers which are turning to resale-as-a-service (RaaS) suppliers to assist them launch their very own resale channels.
Resale platforms have heretofore focussed on progress reasonably than profitability, together with investing in expertise, advertising and marketing and bettering the patron expertise in an effort to enchantment to each sellers and consumers. Nevertheless, Vestiaire Collective’s latest acquisition of Tradesy might sign a brand new period within the growth of the resale sector the place profitability takes precedence. This might see platforms consolidate operations, stock or client bases for economies of scale and to arrange incumbents for intensifying competitors.
“The important thing to progress is to look past simply buying new clients but in addition encouraging present clients to promote and purchase extra,” mentioned Lee.
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