Second-Hand Soars: How Brands Can Grow With The Pre-Loved Trend

Three out of five of the 100 billion garments produced each year will end up in a landfill (Clean Clothes Campaign, 2019). On top of dropping new clothing lines, the fashion industry is notorious for dropping distressing stats about its negative impact on the environment, so much so, that it can be hard to justify purchasing anything new.?

Perhaps that’s why the secondhand apparel market is growing 3X faster than the overall global apparel market (according to Thredup). But it’s deeper than that.?

Let’s unravel this pre-loved trend.

Gen Z Setting the Stage (Or Runway)?

People shop “pre-loved” for a variety of reasons – to get better deals, to find unique items, to afford higher-end brands, or simply because it’s better for the planet. Some brands follow the traditional thrift store model like ThredUp , whereas Depop , Poshmark , and eBay serve as an online marketplace for sellers to list clothes directly on the platform. These marketplaces were previously the only place you’d find a used Zara bag online, but not anymore. This month, Zara is launching its Pre-Owned Program in the US, allowing consumers to repair, resell, and donate previously owned clothes through its own platform.?

You might be thinking, “Wait, Zara? Maybe for outdoorsy, nature-loving brands like Patagonia or Fj?llr?ven , a reselling platform that aims to extend product lifespans and minimize waste makes sense. But Zara?”?

Until recently, brands had a negative association with customers reselling their products on secondhand marketplaces. Thanks to Gen Z, that’s changing. According to Thredup, 71% of Gen Z and Millennials who bought secondhand apparel in 2023 made the purchase online. As a result, online resale grew 23% last year, and major retailers caught on.?

Brands entering the resale market are not just making a smart business move; they’re responding to a powerful shift toward eco-conscious consumerism. Both Gen Z and Millenials are known for choosing brands that are aligned with their values AKA “voting with their dollar”. And now that whistleblowers have successfully called out the destructions of fast fashion (see “The True Cost” on Netflix), these generations are making informed purchase decisions and, in effect, changing the market.

The Brand Loyalty Imperative

When brands offer repairs or pre-used items, it gives customers another opportunity to buy from the brand and further encourages brand loyalty.?

A unique example is Reformation ’s RefRecycling program, which pays Reformation lovers for their old shoes, bags, denim, sweaters, tees, outerwear, and activewear. Brand lovers get “Ref Credit” for future purchases and the company gets to make clothes with recycled materials, so it’s a win-win.

The Girlfriend Collective takes it one step further and recycles clothes from ANY brand, offering $5 credit (per non-Girlfriend brand clothing item) to use at girlfriend.com.

New drops in this category include “GUESS Again” GUESS?, Inc. 's new recycling program in partnership with SuperCircle, and BéIS “Second Béis”, the luggage brand’s initiative to “ let all of our bags keep traveling.” Extra kudos to these clever names.?

For brands considering a resale program, it is crucial to implement a user-friendly interface, establish clear guidelines for quality control, and leverage data analytics to understand consumer behavior and preferences. Participating in peer-to-peer resale platforms not only expands a brand's reach but also fosters community engagement, allowing consumers to connect with each other and the brand in meaningful ways.

Reward with rediem

A core tenet at rediem is to empower purpose-driven brands to mobilize their customers for good. Whether these brands have sustainable supply chains, sell eco-friendly products, donate proceeds to a specific cause, or generally make a positive impact, we believe these brands are eager to demonstrate their core principles to customers versus merely communicating them - and customers want in.?

Brands that want to explore engaging in the circular economy, such as through promoting secondhand shopping, can reward customers for buying resale with rediem. Here’s what you can do:?

1. Offer “double points” for secondhand or pre-loved purchases through the rediem loyalty platform: add extra incentive to shop sustainably (aligned incentives → desired behavior!).
2. Educate your customers about end-of-life for products and teach them how to dispose of your product sustainably - then, reward them when they do it right! For example - recycle your empty beauty containers at a Pact Collective drop-off spot at SEPHORA or Credo or donate used clothes to Thredup or a local Goodwill.
3. Create custom challenges that are authentic to your brand and reward your community for each time they follow proper end-of-life care (bonus: capture lots of UGC along the way!)
4. Remind consumers of the positive impact they are making by shopping with you – instead of showing only points, users' loyalty profiles show the environmental + social impact customers have when they buy your reused products.
5. Cultivate a community with your fans - allowing your loyal consumers to sell, buy, or trade your brand’s pre-loved products at your next pop-up.?

Let’s embrace the future—where style meets sustainability!?

Curious to explore what’s possible with rediem? Join the waitlist! We’re invite-only, so book a discovery call to see if your brand might be considered for future drops.