Chapter 1: The Rise of Resale Platforms

Recently, Ganni unveiled their new sibling site: GanniRepeat.com. This platform allows customers to purchase Ganni secondhand items, operating similarly to well-known resale platforms like Vestiaire Collective, Poshmark, and Depop, but exclusively featuring Ganni products. Shoppers can bid on items at significantly lower prices compared to their original retail values or sell their own previously loved Ganni pieces. Sellers have the option to receive cash or a Ganni gift card with a 20% bonus.

This move aligns with the trend of Gen Z favoring thrift shops and digital consignment stores. Given that Gen Z represents 40% of global consumers and boasts over $150 billion in spending power in the U.S., it’s no surprise that brands are eager to engage with this demographic and explore the potential for profit.

Ganni isn't alone in this initiative. Lululemon announced plans to broaden their "Lululemon Like New" trade-in and resale program across all U.S. locations starting April 22. This program enables customers to trade in used Lululemon items at over 390 stores in exchange for gift cards. Additionally, shoppers can purchase pre-owned items online at likenew.lululemon.com.

In another significant development, IKEA declared that their Buy Back & Resell program will now be permanent in their 37 U.S. stores following a successful pilot last summer. This program allows sellers of used furniture to earn IKEA store credit, while in the U.K. and Ireland, sellers receive between 30% and 50% of the original price.

"I appreciate the concept of retailers managing their resale markets more effectively," noted Melissa Minkow, CI&T's director of retail strategy, in an online RetailWire BrainTrust discussion. "From a customer-relationship standpoint, it helps brands retain consumers within their ecosystem after purchase, which is often challenging in categories like furniture. If IKEA could handle the logistics of reclaiming items, that would be even better. Ultimately, this approach gives retailers additional customer data to leverage."

Despite the distinct challenges that furniture and apparel markets present for resellers, one constant remains: brands that can control logistics and develop effective software solutions are poised for significant profits. Furthermore, companies that grasp the resale concept from the outset will be the ones to benefit.

Andy Reuben, a prominent figure in the resale movement and CEO of Trove, asserts that "brands that ignore the secondhand trend risk facing an 'existential threat'." Trove supports resale operations for notable brands like Lululemon, Patagonia, REI, and Nordstrom, and recently raised $77.5 million in Series D funding.

Trove manages the logistics, operations, and technology required for brands to resell their products. When a consumer wants to resell an item, they can do so at retail locations or on the brand's website. The product is then sent to Trove’s expansive facility in Northern California, where it is processed, cataloged, photographed, listed on the brand's website, and shipped to the buyer—all while ensuring that the brand remains the focal point of the customer experience.

Another key player, Kaiyo, recently secured $36 million in Series B funding to expand their online furniture resale platform. CEO Alpay Koralturk, who experienced the difficulties of buying and selling furniture after multiple relocations, has designed Kaiyo to simplify the process. Customers can buy and sell pre-owned furniture with expedited delivery options. Kaiyo stands out by providing immediate offers to sellers after their appointments, allowing them to cash out right away.

This model has proven effective, with Kaiyo experiencing over 100% year-on-year growth since its inception. They’ve successfully disrupted the industry by addressing common challenges, thereby creating a smooth experience for both buyers and sellers.

The secondhand market is undeniably the future, and that future is unfolding now.

In July, ThredUp announced plans to acquire Remix, a leading European fashion resale platform, to broaden their international reach.

In October, URBN launched Nuuly Thrift, a peer-to-peer clothing resale marketplace. Unlike Ganni's platform, Nuuly Thrift isn't limited to URBN brands (including Anthropologie, BHLDN, Free People, FP Movement, Terrain, and Urban Outfitters) and allows for sales from any brand, resembling Poshmark's model.

Last year, Alexander McQueen partnered with Vestiaire Collective to introduce "Brand Approved," a program where McQueen boutiques sourced secondhand items from select customers, authenticated them, and listed them on Vestiaire Collective. Customers received store credit, while buyers benefited from enhanced authenticity verification.

Brands like Pacsun, Levi's, The North Face, Madewell, Allbirds, Fabletics, and Eileen Fisher have already rolled out their resale initiatives.

Who will take the plunge next?

Chapter 2: Insights from the Resale Revolution

This video discusses the warnings from thrift stores about potential challenges they may face in the near future, reflecting the evolving landscape of secondhand retail.

This video covers the exciting plans for a new thrift shop superstore and warehouse set to open in Hamburg, showcasing the growing interest in the resale market.