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This initiative is a part of Inditex, the parent company’s steps in the area of sustainability. Fast fashion sees its entry into the market – the secondary market – which is currently in a golden age in many countries.
Up market
The second-hand trade flourished in the 18th and 19th centuries but declined and became marginalized in the 20th century. Now it’s coming back.
From ThredUp in the United States – one of the giants in the sector – it points to a global secondary market that will grow by 24% in 2022 and double in size to 82 billion dollars in 2026.
The growth of the $24 billion secondary market for luxury goods is four times faster than the primary market (12% vs 3%).
This growth is not entirely due to the economic crisis and the increase in price awareness among consumers. Something very complicated is happening.
Minimalism
Minimalism has emerged as a new lifestyle in the United States. People want to buy less and get more creative when it comes to what they choose. Consumers look at costs not because they care about saving money, but because the price of clothing (how well it costs, an objective matter), and its price (as the buyer says to him, a) subject) are important details for them and they can make a decision.
Recycling or repairing clothes to give them a new life represents a change in mindset and attitude, especially in high-end consumer markets like North America.
Some brands have managed to channel this revolution in consumer value into sustainability metrics. Outdoor clothing company Patagonia has announced that it donates 1 percent of its annual profits and is donating its entire brand to fight climate change. Social and environmental impact is an important purchasing variable for small consumers.
Game for Gen. Z
But for many consumers, second-hand shopping is also entertainment. They enjoy looking for clothes and looking for bargains or steals. This is especially true for younger consumers, who seem to be shopping for a hobby with gambling.
In fact, the same ThredUp report found that 62 percent of millennial and Generation Z consumers prefer second-hand products to new products.
In this case, the element of the game is combined with other values found in adolescence: authenticity or the search for their own style. And, also in this context, for some contributors, nostalgia appears as a factor related to second-hand goods.
Inspired by the beauty evoked by series like Stranger Things, young people feel nostalgic for times gone by.
Second-hand business models
The digital world has given rise to various models of interaction and exchange between people through reselling platforms such as Wallapop, Etsy, Vinted and Mercari. Even Facebook launched its own sales platform in 2016.
They have created a cooperative economy where every user enters the circuit as a seller.
It is not surprising that brands have responded to this phenomenon by creating their own portals. By doing this, you can better control the constantly declining product and also check the trend.
On the other hand, the second-hand market is dominated by large retail chains such as Walmart, which has its own second-hand department.
There are also shops with different operating models. Some second-hand stores are non-profit stores, dependent on donations and have a charitable purpose. Goodwill Industries, the largest organization of its kind in the US, has more than 3,300 physical stores and 120,000 employees. It has recently launched an online sales platform.
Due to the scarcity and uniqueness of products from another era (currently understood as 20th century fashion), there are even vintage stores where consumers are willing to pay even higher fees to get an image of their clothing.
Some specialist clothing is based on the “expiration date” of the clothing or the variability of sizes between users. That means the owner cannot wear these clothes for a long time. This makes sense when you think about children’s clothes; One of the most competitive segments in this field.
There are also other types of stores that base their prices on when the clothes are in the store, or sell clothes they have bought from other stores.
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Second hand tests
With the expansion of business models and the growth of the market, some goods and lack of storage space have created problems.
In the secondary market, operational issues are not easy: many people are needed to sort the clothes that enter the store (not all of them are in good condition for resale). In fact, The New York Times recently warned that the quality of products sold in thrift stores is declining.
Another question is what happens to the clothes that are not sold in this market. Many of them go to foreign markets and although they originate from gifts, they sometimes enter the commercial circuit.
While these questions may be resolved, the trend seems to follow if the secondary market’s new consumer needs are to be met. Because it’s fashionable to wear used items these days.
This article is reprinted from the discussion under a Creative Commons license. Read the original article.
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