Why brands should engage in re-commerce, according to Recurate

Why brands should engage in re-commerce, according to Recurate

A new report from Recurate has highlighted the growing popularity of resale, second-hand and vintage shopping for consumers. In the report, titled ‘Circular Fashion Is Now’, the resale platform outlined the results of a survey it conducted with 1,000 adults in the US and Canada, with further data from an additional 11 markets selected from the life survey. healthy and sustainable 2021 from GlobeScan. .

According to the reselling platform, 74 percent of people globally already buy from the store, the majority of which are in Australia, Canada and the US, with mid-priced brands being the most popular. most favored by both sellers and buyers.

Of those who resold clothing, sustainability was not a primary factor. 23 percent of those surveyed said they were selling because the parts weren’t used, while only 15 percent said it was good for the environment. For shoppers, meanwhile, the motivation was primarily to save money, with sustainability ranking third on the list.

In its report, Recurate highlighted a prominent customer in the re-trade space it called ‘Circulars,’ defined as the 73 percent of re-trade sellers who also bought on resale. The platform described the group as “young, urban, high-income” and noted that the motivation behind their behavior boils down to frequently renewing their wardrobes. He added that 48 percent of the group bought with the intention of reselling.

What is there to win?

The main benefit of re-trading, according to Recurate, is the ability to attract new customers without producing more products. Across all segments surveyed, trying a new brand was a prominent motivation for buying resale, with 85 percent of the ‘Circular’ group also saying they would try a new brand if resale was offered. Additionally, seven out of 10 people in the survey said they were buying or selling used clothing at least once every two to three months.

A brand-driven remarketing model also gives buyers flexible buying options, low prices to try a brand, and the ability to buy and sell in one place. Additionally, the report indicated that 75 percent of remarketing participants said they would be more loyal to brands with resale options, while 47 percent said they would return within a month to buy again.

How to take part

Brands looking to adopt a re-commerce model should encourage both sellers and buyers to participate, according to the report, with 62 percent of respondents saying they felt brands could do more to help them engage in the re-commerce model. retrade Recurate added that to make re-commerce a virtuous cycle, brands need to streamline the process for sellers through simple return options, return programs or digital IDs for products.

For sellers, the biggest turning point in participation was getting up to half the original price back at resale, while 64 percent said they wanted to sell items individually rather than in bulk to get a higher value per item.

However, while value for money was the most important motivation for many, sustainable living was still an important element, with 71 percent of shoppers saying they care about their impact on the planet. “Consumer desire to reduce their environmental impact is high across the board,” the report reads. “And this desire is increasingly influencing their lifestyle and purchasing decisions.”

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