{"id":2928,"date":"2018-12-05T09:44:16","date_gmt":"2018-12-05T04:14:16","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=2928"},"modified":"2023-10-19T16:28:08","modified_gmt":"2023-10-19T10:58:08","slug":"the-circular-fashion-economy-all-you-need-to-know-about-re-commerce","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/","title":{"rendered":"The Circular Fashion Economy: All You Need To Know About Re-Commerce"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f864810436e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f864810436e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/#but-first-what-is-re-commerce\" title=\"But First, What Is Re-Commerce?\">But First, What Is Re-Commerce?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/#the-psychology-of-re-commerce\" title=\"The Psychology Of Re-Commerce\">The Psychology Of Re-Commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/#ways-to-make-re-commerce-a-possibility-the-retailer-perspective\" title=\"Ways To Make Re-Commerce A Possibility- The Retailer Perspective\">Ways To Make Re-Commerce A Possibility- The Retailer Perspective<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/#re-commerce-and-luxury-fashion\" title=\"Re-Commerce And Luxury Fashion\">Re-Commerce And Luxury Fashion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/#future-trends-in-re-commerce\" title=\"Future Trends In Re-Commerce\">Future Trends In Re-Commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/the-circular-fashion-economy-all-you-need-to-know-about-re-commerce\/#but-what-about-the\" title=\"But, What About The $$?\">But, What About The $$?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Here&#8217;s some wardrobe math to ponder:<\/p>\n<p>Each piece of clothing has an average life of three years. If an individual wardrobe has 60 articles of clothing on an average, and the average weight of each item at 200 grams, we wouldn\u2019t be disposing more than 12 kilos of clothes every three years.<\/p>\n<p>Yet, the facts state otherwise. Think about it: The average individual disposes of over 80 tons of clothing in their life! Most of these clothes are not recycled, even though nearly all of them can be.<\/p>\n<p>Now, think about this- <a href=\"https:\/\/www.thebalancesmb.com\/textile-recycling-facts-and-figures-2878122\">nearly 70% of all apparel purchases involve a preloved item<\/a>. Enter- Re-commerce.<\/p>\n<p><span style=\"font-weight: 400\">Buying in seconds or from thrift stores is not a new concept. In sectors such as electronic goods, many people are quite comfortable buying refurbished pieces with few to no defects. This is because the price variance between a new electronic item vs. a used one is rather staggering.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In fashion, re-commerce is not much of a trend beyond the thrift stores today. However, it is poised only to grow, as fast fashion churn out more and more each day while fashion trends change by the minute.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"but-first-what-is-re-commerce\"><\/span>But First, What I<strong>s R<\/strong>e-Commerce?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_2929\" aria-describedby=\"caption-attachment-2929\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2929\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/resaleclothes-300x182.png\" alt=\"\" width=\"750\" height=\"455\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/resaleclothes-300x182.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/resaleclothes.png 550w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-2929\" class=\"wp-caption-text\">Source: GreenBiz Weekly<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400\">Re-commerce is reselling, and in this case, fashion apparel that has already been used. Re-commerce in retail is a fairly old concept but with clothing, people naturally have some inhibitions related to&nbsp;its previous use and the degree to which they might have been used before.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, re-commerce in fashion today is being driven by two perspectives:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">Fashion trends change faster today than they have ever done before. People who like to keep up with the trends often find their clothes from last season to be in perfect condition but needing disposal.<\/span><\/li>\n<li><span style=\"font-weight: 400\">Everyone likes a good deal. For someone trying to make ends meet, and a high-schooler trying to keep up with their peers, and even someone looking to buy a luxury item at a discount, re-commerce is a way to have what they need at far more affordable prices.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Simply put, re-commerce can help every consumer fulfill their needs even as the degree of apparel wastage is reduced, and more products are brought into circulation, as opposed to being pushed to eventual disuse.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"the-psychology-of-re-commerce\"><\/span><b>The Psychology Of Re-Commerce<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_2930\" aria-describedby=\"caption-attachment-2930\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2930\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/buyer-pyschology-300x200.jpg\" alt=\"\" width=\"750\" height=\"500\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/buyer-pyschology-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/buyer-pyschology.jpg 734w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-2930\" class=\"wp-caption-text\">Source: legalinkmagazine<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400\">Come to think of it, there\u2019s something romantic about buying books that someone else read first. Likewise, no one ever decides not to buy a real estate property because someone else owned it before. When it comes to clothing, however, our tendencies are usually more conservative.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Usually, preloved clothes get a bad rep, either due to the perception of where they are old (Think thrift stores, Craigslist) or due to doubts about their actual physical condition. In other words, someone buying clothes used before is very unlikely to go announcing it to the world.<\/span><\/p>\n<p><span style=\"font-weight: 400\">For re-commerce to work, especially for apparel, price as a decision-factor is significant.<\/span><\/p>\n<p><span style=\"font-weight: 400\">That said, there still exists a great deal of stigma around the idea of buying what someone else had once put on their bodies. For any trend to become mainstream, a healthy conversation around the topic is the only way forward. Sustainability is one clear upside of re-purposing fashion, and as more influencers come forward to endorse preloved fashion, re-commerce in the industry has a great chance of becoming mainstream.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ways-to-make-re-commerce-a-possibility-the-retailer-perspective\"><\/span><b>Ways To Make Re-Commerce A Possibility- The Retailer Perspective<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">From a retailer\u2019s standpoint, what benefits does re-commerce offer?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">You can become the single point of sale for both new and used clothing from your label.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">You can establish the standards for what quality and condition a product is acceptable in, bringing in uniformity into the system.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Sellers of preloved clothes once bought them from you- by offering a cash refund for their clothes, you give them more incentive to buy from you again. <\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Buyers of preloved clothes associate themselves with your brand and the store\/ online experience. This is one way to \u2018legitimize\u2019 buying products that have been used before, under the umbrella of a trusted brand.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">When you get involved in the reselling end of the equation, you take the conversation into your control. <\/span><\/p>\n<p><span style=\"font-weight: 400\">For example, you can curate a collection around one used and one new item of clothing for a radical new approach to re-commerce. This way, people have the incentive to buy both pieces from you, and not see you as just a retailer of used clothing.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Another idea is to set up a re-commerce marketplace on your web store where people can list their products once they pass your quality specifications. Every time a sale is made in this section, the seller receives store credit which can be redeemed throughout your store.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Apart from apparel, you can also consider becoming a platform for accessories to be resold. A dedicated section for used accessories gives people the chance to browse through more options at various price ranges before making a final choice.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Customer experience around re-commerce really determines whether it can become a sustainable business model for you. Training your staff is very important, as biases can easily creep in and come across as judgmental to someone browsing through the used clothes in the store. Also, think about what policies you\u2019d like to have in place to facilitate these sales.<\/span><\/p>\n<p><span style=\"font-weight: 400\">For instance, if a customer has trouble with a seconds piece, how will you address the returns and replacements? In spite of stringent quality standards, when the odd damaged piece does sneak in, how will you address this concern with the original seller?<\/span><\/p>\n<p><span style=\"font-weight: 400\">As we\u2019ve discussed above, perceptions make a huge impact on the success, or failure, of re-commerce. This means that you need to be that much more careful selling used fashion than you are selling a brand new product.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"re-commerce-and-luxury-fashion\"><\/span><b>Re-Commerce And Luxury Fashion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">We often find that buyers of preloved luxury fashion rarely ever mention where and at what price they got it from because the sheer nature of luxury is to be expensive. Marketplaces that sell luxury seconds can make a huge impact in this area.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Campaigns that are subtly targeted at getting people to share more about their purchase on social media are one way to get people engaged in a positive manner. The right messaging can change perceptions, and instead of being used goods, it can be positioned as a product that lasted the test of time, and ownership.<\/span><\/p>\n<p><span style=\"font-weight: 400\">People buying preloved luxury should be given an avenue where they\u2019re happy to share that the product they own is original, extremely well-maintained, and comes with an extra dollop of love from the previous owner.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"future-trends-in-re-commerce\"><\/span><b>Future Trends In Re-Commerce<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_2931\" aria-describedby=\"caption-attachment-2931\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2931\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/shutterstock_1035787024-1-300x238.jpg\" alt=\"\" width=\"750\" height=\"594\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/shutterstock_1035787024-1-300x238.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/shutterstock_1035787024-1-768x608.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/shutterstock_1035787024-1.jpg 1000w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-2931\" class=\"wp-caption-text\">Source: Shutterstock<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400\">As re-commerce becomes more mainstream in areas such as electronics, furniture, and jewell<\/span><span style=\"font-weight: 400\">ery, we can expect the conversations around apparel, too, to move into a space where buying second-hand is just as common as is buying a brand new piece of clothing.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Marketplaces are a great avenue to encourage re-commerce. Sites like eBay and Amazon already have a dedicated customer base and are therefore poised to introduce the concept of selling used apparel in a fun manner to these audiences.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Retailers, in their individual capacity, can help steer the conversation away from thrift stores and piles that need to be sifted through. Instead, making the seconds&#8217; section just as appealing, maintaining the clothing in this section until it gets sold, and treating customers who come in for these products in a respectful manner at the store and individual level can go a long way in changing perceptions.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"but-what-about-the\"><\/span><strong>But, What About The $$?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\"><a href=\"https:\/\/www.momox.de\/\">Momox<\/a>, a re-seller of electronic goods and books, turned a revenue of 150 million pounds in a single year. If you can become one of the first-movers in fashion re-commerce, that figure can give you some serious inspiration! <\/span><\/p>\n<p><span style=\"font-weight: 400\">Re-commerce, especially in the apparel section, is a $20 billion industry that is expected to grow at a rate of 15% per annum until 2023 alone. Yerdle Re-commerce is already helping brands like Patagonia and REI take control of their re-commerce loops and maintain quality standards that both the brands and consumers can be proud of.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Stella McCartney&#8217;s label sells on The Real Real platform with some extra perks for customers. One of their calculations states that they\u2019ve saved over a billion glasses of water since they made the luxury brands sales circular in 2012. Convincing numbers, that are profitable to everyone in the value chain.<\/span><\/p>\n<p>Re-commerce is definitely a new approach to selling apparel. But understanding the different use cases of this concept while recognizing its limitations will allow organizations to build better business models that bear multiple benefits.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> Here&#8217;s some wardrobe math to ponder: Each piece of clothing has an average life of three years. If an individual wardrobe has 60 articles of clothing on an average, and the average weight of each item at 200 grams, we wouldn\u2019t be disposing more than 12 kilos of clothes every three years. Yet, the facts  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":2933,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1523,1161],"tags":[187,186,185],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Circular Fashion Economy: All You Need To Know About Re-Commerce<\/title>\n<meta name=\"description\" content=\"Re-commerce is definitely a new approach to selling apparel. 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