Behind the Threads: The Interplay of Tech and Circularity in Fashion Re-commerce

Recently we had the pleasure to try a new format on our HappyPorch Radio Podcast. So welcome to the inaugural episode of our "Exploring Circular Tech" mini-series, where we take a deep dive into specific areas of circularity, focussing on a different topic each time.

Our first exploration is centred on the fascinating world of re-commerce within the fashion industry. As the second-hand market gains momentum, we discuss the vital role of software and technology in giving used clothes a new lease of life. But do these re-commerce platforms truly live up to their eco-friendly reputation? Are they actually reducing waste and promoting sustainable consumption? Or is it simply a case of old problems in slick, new packaging?

Our first episode featured a panel of industry experts - including Cynthia Power, Andy Ruben, Gerrard Fisher, Kristina Bull, and J.R Siegel - who offered their insights on this emerging trend.

 

Decoding Re-commerce

Re-commerce, in a nutshell, means buying and selling pre-owned goods. It covers second-hand, vintage, pre-loved, and thrifted items. In the podcast, we categorised re-commerce platforms into three main types:

1. Peer-to-Peer Marketplaces: Platforms like Poshmark, Depop, and eBay, where individuals directly sell to other individuals.
2. Third-Party Marketplaces: Businesses like ThredUp and Vestiaire Collective that gather, verify, and sell items.
3. Brand-Owned Recommerce: Brands like Patagonia’s Worn Wear or Levi’s SecondHand that operate their own resale platforms, typically collaborating with technology partners.

 

Here’s six of our key takeaways from the Episode

1. Crucial Role of Technology: Technology is the driving force behind making re-commerce efficient and scalable, from user-friendly platforms to robust authentication processes.
2. Growth and Complexity: Re-commerce is on a fast track to expansion. Each platform type – peer-to-peer, third-party, and brand-owned – offers unique advantages and challenges catering to a diverse market.
3. Environmental and Social Impact: While re-commerce has the potential to reduce waste and production in the fashion industry, accurately measuring these benefits, particularly displacement (reducing new product demand) is complex.
4. Economic Sense for Brands: For fashion brands, re-commerce is a savvy business strategy. It can generate new revenue avenues and fortify customer loyalty, provided there’s a solid commercial foundation supported by data.
5. Consumer Trends and Motivators: Consumers are attracted to re-commerce for cost savings, unique finds, and ethical considerations. Younger generations, in particular, are embracing second-hand shopping.
6. Challenges and Opportunities: Despite its growth, re-commerce faces challenges such as ease of listing items, ensuring authenticity, and logistics management. Our guests are at the forefront of addressing these challenges,, making re-commerce an integral part of the retail ecosystem.

 

In Summary

The thriving fashion resale industry is vibrant and brimming with potential. This is an ideal moment for businesses to consider exploring and investing in this emergent sector, leveraging technology with the growing expertise available to strike a balance between sustainability and profitability.

We invite you to listen to our full podcast episode for further insights. Let us know what potential you see in the re-commerce sector. Your thoughts are always welcome.