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What\u2019s old is new again.<\/p>\n
Need proof? One look at the resale market\u2014particularly in clothing — makes it abundantly clear that a change in market dynamics is happening.<\/p>\n
A few months ago, GlobalData and online clothing retailer ThredUP released a study that estimated that the U.S. second-hand apparel market was worth $24 billion in 2018. Within 10 years, by 2028, the used-fashion market in the United States could explode, reaching $64 billion, an increase of 166 percent.<\/p>\n
Goodwill stores and their ilk \u2013 church thrift shops, charity donation centers, etc. \u2013 have been around for years. That hasn\u2019t changed.<\/p>\n
But their ability to use technology to help categorize, price and display goods has exponentially increased. That, coupled with a burgeoning online presence has helped the segment grow.<\/p>\n
But what has really made it popular is the millennial generation.<\/p>\n
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Millennials are particularly attuned to being stewards of the planet.<\/p>\n
As a result, the idea of using natural resources to create new products when used goods serve the purpose perfectly is anathema to these young adults.<\/p>\n
Buying hand me-downs has a significantly smaller ecological footprint than purchasing new: According to\u00a0thebalance.com<\/a>, the annual environmental impact of a household\u2019s clothing is equivalent to the water needed to fill 1,000 bathtubs and the carbon emissions from driving an average modern car for 6,000 miles.<\/p>\n Millennials also are extremely interested in supporting brands that share their personal values and tend to support purpose-driven companies.<\/p>\n So, buying clothing from a charity that supports low-income communities is a win-win for millennial shoppers.<\/p>\n <\/p>\n This generation is also focused on quality and value.<\/p>\n Buying a winter coat at a discounter may be the least expensive option, but its material quality is likely to be poor.<\/p>\n A better option might be a coat made of high-quality materials, but the price could be quadruple that of a big box competitor.<\/p>\n The best option, therefore, for these shoppers, would be a gently used coat from a high-quality brand.<\/p>\n Pricing will be drastically lower, with minimal degradation in quality.<\/p>\n For example, Patagonia’s Worn Wear program encourages customers to bring in their old clothing to local stores for resale, in exchange for a gift card.<\/p>\n Many of those also include a note describing how the item was worn.<\/p>\n That creates a very special connection among the item, the seller, and the buyer.<\/p>\n Patagonia’s mission: \u201cTo build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.\u201d<\/p>\n The cost and quality of new items can never match the value proposition of cost and quality of used.<\/p>\n For example, a new dress shirt bought at a big-box discount retailer may cost the same as a used luxury brand, but the latter will last longer because of its quality construction. It may even be re-thrifted.<\/p>\n In addition, for truly vintage items, there is not only the appeal of “the hunt” for the piece, but also of its uniqueness.<\/p>\n For example, finding and wearing a Levi’s red tab, sherpa-lined denim jacket from the 1980s has a special appeal.<\/p>\n <\/p>\n Andy Ruben, a former global strategy exec at Walmart and founder of Yerdle, was a recent featured speaker on The Tony Robbins Podcast.<\/p>\n He warned of significant ramifications for retailers that did not recognize this Millennial mindset.<\/p>\n Retailers that ignore the customers’ dedication to sustainability and their intense focus on value, as well as bespoke-type items, could result in a significant erosion of their customer base.<\/p>\n Recent studies report that sales of resold clothing will surpass the revenue of “fast-fashion” retailers, such as H&M, Forever XXI, etc.<\/p>\n In response, struggling department store chains could follow Patagonia’s model and allow clothing “trade-ins.”<\/p>\n Or, they could open a thrift-mart for luxury items, where customers could buy used items of highly desirable brands.<\/p>\n It’s the same business model as that of a new car dealer that also owns a used car lot on the same property.<\/p>\n Another related concept that brick and mortar retail could adopt is one successfully launched by Rent the Runway, in which a woman can rent a designer outfit for a special occasion, spending far less money than if she’d bought the clothing.<\/p>\n Millennials are surpassing Baby Boomers in population; there are roughly 73 million in each group.<\/p>\n As a result, retailers’ focus must evolve to take into consideration this generation’s unique characteristics, including millennial’s inclination to gravitate toward brands that are an expression of their personality.<\/p>\n Thrifting is environmentally conscious, budget-friendly and provides an opportunity to hunt for the just-right, uncommon item, which speaks directly to how millennials want to spend their money.<\/p>\n","protected":false},"excerpt":{"rendered":" What\u2019s old is new again. Need proof? One look at the resale market\u2014particularly in clothing — makes it abundantly clear that a change in market dynamics is happening. A few months ago, GlobalData and online clothing retailer ThredUP … Continue reading Quality and value don\u2019t have to be mutually exclusive <\/h3>\n
Impact of ignoring the millennial mindset<\/h3>\n