We
previously looked at the world of fast disposable fashion and how its fortunes have suffered of late as a
result of changing consumer spending habits, changes in tastes and A growing
awareness of the true cost of fast fashion. Now there is emerging evidence that
the industry is under threat from yet another direction and that is the
increasing popularity of second-hand clothing. Second-hand has gotten a
significant boost in prestige in recent years. It’s not relegated to
dusty thrift stores anymore it’s gone mainstream and high tech too, look at
sites like threadUP, Poshmark, and the RealReal which have become wildly
popular and specialize almost exclusively in second-hand clothing be it
everyday apparel or top of the line designer brands. It’s estimated that the
second-hand apparel market was worth about 24 Billion dollars in sales in 2018
compared to fast fashions total of about $35 billion. The second-hand market is
expected to more than double over the next ten years to an estimated 64 billion
according to retail analytics firm Global Data. It’s evident that second-hand
is slowly siphoning off sales from fast fashion retailers but what’s the appeal
with second-hand? For starters a plethora of options, you’re not just stuck
with the limited options that the fast fashion retailer has to offer this
season. Second, its affordability sure fast fashion is known for its
affordability, but second-hand offers some higher end and often better quality
items at similar fast fashion pricing. Last but not least it’s the
environmental appeal that unwanted apparel is getting a second life and its one
less garment being produced and one less piece of clothing not ending up in a
landfill.
What does second-hand
clothing have to do with sellers that specialize in reselling liquidation
clothing? Consumers are far more willing than ever before to spend on items
that are not deemed as first run items. This is a huge plus for resellers who
focus primarily on customer return condition merchandise. No tags, no packaging
no problem! As long as the quality and price are right, that’s not an issue. Customer
returns are essentially first run second-hand goods maybe worn once
and then returned, not like true second-hand which could be worn and washed multiple times. The best part, this trend is on
the upswing, the demand is going to keep growing meaning increased sales with
better margins. What is the key to success with this approach? Buy at the right
price and the right items. Customer Return
condition lot are discounted even more heavily than shelf Pulls often with
higher dollar brand mixes. Look for that high demand, high dollar filled
lots with the best possible pricing and take the plunge. Dirty or damaged
items? Clean them up and prep them for resale it’s still possible to sell those
high dollar items such as winter coats or designer handbags with some prepping
and minor repairs.
Consumers are not
turning their back on fashion and don’t expect to see the fast fashion industry
disappear overnight but there are clear signs that consumers realize the
benefits of second-hand and that used should not be considered a
dirty word.
Check our our selection of Customer Return condition merchandise here.