Aug 01, 2021 | By WGSN Insider
Big data meets consumer insights, Experience WGSN.
From e-commerce giants to luxury powerhouses, brands are investing in the resale market.
In April, fashion conglomerate LVMH launched Nona Source, a B2B platform that allows designers and brands to purchase deadstock fabrics. The launch shows how even luxury brands are recognising resale as a key investment, not only for consumers but for businesses.
WGSN has tracked the rise of resale on social media, with mentions of “resale”, “secondhand” and “vintage” showing sustained growth on social media, and reaching a combined 11% penetration in June 2021. According to our e-commerce data, new S/S 21 products labeled as “deadstock” surged 775% in the US, 383% in Germany and 178% in the UK YoY, led by Free People, Net-a-Porter, Urban Outfitters and Nordstrom, with big growth in knit tops, dresses, bags, and jewellery.
Etsy’s recent purchase of fashion resale marketplace Depop illustrates how brands are keen to tap into this market. WGSN Barometer shows Depop continues to gain ground among young shoppers, but 2021 is seeing an increase in older consumers, particularly aged 25-39.
Resale’s popularity isn’t limited to fashion. China’s biggest secondhand consumer electronic trading platform, Aihuishou, recently listed on the NYSE at $14 a share, a market value of $3.5bn.
How you can action this: consider how your brand can create its own resale ecosystem, either through buy-back programmes or deadstock materials sales.
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