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In the ever-evolving landscape of fashion and retail, 2022 marked a remarkable turning point. Branded resale programs experienced exponential growth, tripling in size from the previous year with 88 brands launching dedicated resale shops. The momentum continued unabated into 2023, and with 86% of retail executives saying their customers are already participating in resale, the question among brands is no longer if they’ll get into resale but how.
Take-back programs have become the gateway for brands to explore the thriving resale market; and as they see initial success and consumer demand grows, we’re seeing brands expand their resale programs to include digital resale shops.
Getting started in resale through take-back programs
For many brands, the journey into the resale market begins with a take-back program. These initiatives serve as a stepping stone, offering brands an opportunity to test the waters and gauge customer interest in resale. They also serve as a way to build up the inventory they need in case they want to launch an impactful resale shop down the line.
Take-back programs are akin to a closet cleanse for customers. They encourage people to declutter their wardrobes by exchanging their pre-loved items for cash or brand credit, while also providing a sustainable solution to keep clothing in circulation and out of the landfill. For brands, take-back programs are a simple, low-risk way to earn revenue and customer loyalty while creating a meaningful touchpoint to engage with new and existing customers. These programs also offer brands and retailers a window into their customers’ shopping habits with direct insight into what brands are already in their closets.
A test-and-learn approach for brands
Brands like Athleta, Fabletics and Michael Stars have embraced this concept, all testing resale with a take-back program to start before expanding their programs to include a resale shop, where consumers can shop for secondhand products directly from the brand’s website.
According to Suzanne Lerner, Co-Founder and CEO of Michael Stars, a major reason Michael Stars chose to pursue a take-back program initially was because of the brand’s success on thredUP, but it was the consumer-demand of its take-back program that tipped the scale in later launching a resale shop. “We’ve been a best-selling brand on thredUP for years, even before we had an official partnership, so it was logical for us to partner with them and leverage all the services they provide,” Lerner said, “Our presence on thredUP exposes our brand to new customers, as well as enabling us to re-engage with customers who’ve purchased Michael Stars in the past. Plus, their marketing really caters to all generations of conscious consumers who have a vested interest in the environment, which aligns with our target customer.”
Lerner believes that take-back programs are a great way to gauge how your customers respond to sustainability initiatives. “Since the [thredUP] Clean Out Kits accept all brands, we’re able to encourage our customers to give their old clothing a new life—not just Michael Stars,” Lerner said.
Brands embrace a 360 resale experience
As resale steadily seeps into the mainstream, we’re witnessing a new wave of brands that are boldly venturing into this market. More often than not, new entrants are taking the leap sooner, launching take-back programs and resale shops together from the start. Brands like Tommy Hilfiger, Kate Spade, Hot Topic and J.Crew are now all offering 360 resale programs that allow their customers to shop secondhand products directly from their website and resell gently-worn items for shopping credit. Smartwool is the latest brand to launch a clean out and resale shop with thredUP in September 2023.
These programs are gaining customer traction and making an environmental impact from the moment they resell an item. In the first three months of its resale program, J.Crew reported its customers recirculating over 34,000 items through thredUP’s Resale-as-a-Service (RaaS), and avoiding over 150,000 pounds of carbon emissions.
For Michael Stars in particular, Lerner explained that the brand’s interest in resale stemmed from the fact that their customers were wearing their styles for years, if not decades, after purchasing. “Through our research, we found that Michael Stars is popular in the resale market because of the high quality and longevity,” Lerner shared, “I constantly hear stories from women I meet that have had their Michael Stars tee for 20+ years and still wear it, as well as some great anecdotes about daughters raiding their mothers’ closets for our tees. Because of this, I knew there was a resale market for products like ours.”
As the resale market continues to reshape the retail industry, one thing is clear—take-back programs are not just a trend but a transformative launch pad shaping the future of fashion and retail. Brands that understand this are not just surviving; they are thriving in a more sustainable and circular world of commerce.
“While resale is having a moment right now, we believe that resale is beneficial to both customers and the environment in the long term and that it will outlive short-term trend cycles,” Lerner noted. More than 91,000 Michael Stars pieces have been recirculated through thredUP’s RaaS. “We’ve seen continued, steady interest with a handful of customers each week ordering Clean Out Kits and shopping for Michael Stars on thredUP,” Lerner said, “This is a great sign that our customers see the benefits of resale just as much as we do.”
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