Rebooting Re-Commerce: Resales & Rental Revisited

Published 29 April 2021

Author

Rebecca Hobbs

Driven by a heightened desire for conscious consumption post-pandemic, the re-commerce market is evolving rapidly: globally, resales alone will grow by 93% to $64bn by 2024. Covering white label solutions supporting brands’ reselling ambitions, retailer rental schemes, swap-based services demonstrating how to monetise circularity and collab-primed e-marketplaces, we distil the need-to-know developments in fashion, sports and furniture.

In a major departure from the formerly frosty relations between luxury players and resale marketplaces, collaborations between fashion houses and third-party resellers including TheRealReal are springing up. These branded e-stores are enabling brands to dip a toe into re-commerce, attract younger consumers and re-establish cult status in the process – see Ralph Lauren x Depop.
Forward-thinking brands are reaping resale rewards: wresting back brand image control from generically styled marketplaces, generating both commission and new revenue streams via store credit schemes, and capturing fresh consumer data. This quickly evolving space – formerly dominated by eco-centric outdoors brands – holds major mileage thanks to growing sustainability and budget-conscious cohorts (see Key Stats).
Next-gen e-commerce platforms are allowing eco-conscious consumers, and those newly cognisant of cash flow (a growing group due to pandemic-induced recessions) to monetise their closets via peer-to-peer rentals and possession-swapping. Meanwhile, digital wardrobing apps are adding resales, rental, repair and donations to their services to bridge the gap between the thrill of newness and rising guilt about conspicuous consumption.
Growing even during lockdown, rental is predicted to soar during the next decade (see Key Stats) as affluent consumers, able to WFH, perceive days away from home as an opportunity to dress up. Additionally, more functional categories – childrenswear and home – offer renters and eco-conscious consumers a flexible alternative to ownership – with rent-to-buy a key advantage.   

Rebooting Re-Commerce: Resales & Rental Revisited

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Topics

Ecommerce
Home & Interiors
Retail
Visual Merchandising
Service Design

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