First Insight reports that 62 percent of millennials and Gen Z prefer to buy from sustainable brands and there is a growing trend of young consumers choosing to shop in secondhand stores. As demand has increased, and younger shoppers move from shopping in traditional retail stores to vintage shops, many traditional retailers are jumping on the recommerce bandwagon.
Although companies have been talking about sustainability and the circular economy for years, and retailers have been trying to make the production process more sustainable, customers will be the driving force to make sustainability practices stick. The growing consumer demand for preowned products may the accelerator for the circular economy.
Strong Revenue Growth Across Recommerce Channels
Used-clothing store sales revenue was up 37 percent in 2021 compared to 2020, and 25 percent ahead of 2019. These numbers only account for retail brick-and-mortar stores that sell preowned goods, which is just over $22 billion in sales. Cowen financial predicts that recommerce including stores, ecom, digital sales, subscriptions and rentals will be 14 percent of the apparel, footwear and accessories market. In its full year earnings report, eBay reported revenues up 17 percent growing to over $10 billion. ThredUp has suggested that the apparel resale market alone will hit $64 billion by 2024.
Next Gens Create High Demand for Pre-owned Goods
The driving force behind the demand for preowned goods are the millennials and Gen Z who seek out companies that address the industry’s most pressing long-term issue: sustainability. First Insight reports that 62 percent of millennials and Gen Z prefer to buy from sustainable brands and there is a growing trend of young consumers choosing to shop in secondhand stores. As demand has increased, and younger shoppers move from shopping traditional retail stores to vintage shops, many traditional retailers are jumping on the recommerce bandwagon.
at the Robin Report.
