The Resale Edit: Shiny Is A Good Start But Can It Scale?

The Resale Edit: WeeklyEdition #3-This past week we saw the launch of three new brand resale platforms: Michael Kors, Marimekko, and PrettyLittleThing (PLT). Dicks Sporting Good expanded a local trade-in program, Amazon invested in Cashify, an Indian electronics trade-in marketplace, Trove reached 700 U.S. stores with trade-in technology and The Cut gave us a not-so-nice peak inside The Real Real.

Michael Kors and Marimekko launched resale programs with beautiful splash pages, gorgeous photography, and activated with paid media budgets. The sites are powered by Recurate and Archive respectively. They follow the pattern that will likely define resale in 2022– low resource lift and high media exposure. As more brands offer resale, it will further accelerate the shift of branded resale from innovation to expectation.

As Sourcing Journal writes these programs provide brands a low-lift way to launch resale by putting the work of listing, pricing and sell thru on the customer. Over the longer term these programs will require additional investment to go from marketing to business relevant. For example, as of August 30, Michael Kors had 74 items for sale, Marimekko 1,203: when shopping across 13 categories and half a dozen sizes on Marimekko it quickly becomes hard to shop.

Trove shared a milestone of their Recommerce Operating System powering trade-in technology for 700 stores nationwide. Physical retail trade-in provides a tremendous advantage for brands making it easier for customers to bring back items, driving foot traffic, and cementing loyalty. This approach is a good example of the technology necessary to scale profitable resale for brands.

Dicks Sporting Goods expanded local trade-in events with partner SidelineSwap. It’s a no-brainer as stores fight to become community hubs. And, Amazon’s 2% stake in Cashify, an Indian electronics trade-in marketplace is another early signal of the importance of electronics supply globally. I anticipate more shakers and change-makers to come over the next decade.

Finally, The Cut exposed a “very real” look into The Real Real. The piece did its best to add a small dose of sugar with ‘but I can’t stop shopping’ however that is where the sugar high ends. The viewpoint is fairly accurate but in the broader context, early marketplaces such as The Real Real have been the innovators that have made resale of today mainstream. These marketplaces will face additional pressure as brands launch resale programs with lower customer acquisition costs, existing supply chains and store base.

The So What?
Resale is quickly becoming a customer expectation rather than innovation as more brands launch resale programs.
Many brands are finding low lift ways to launch programs in the media. While these programs are a good start, they will require additional investment and technology to become meaningful to the business and customers.

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Week of August 30:
Michael Kors Pre-Loved, a New Resale Marketplace, Launched Friday
Women’s Wear Daily
Looking to support the circular economy, Michael Kors launches a resale marketplace on PreLoved.MichaelKors.com. With this new marketplace, Michael Kors wants to re-invent the meaning of timeless luxury. Only Kors VIP members are able to sell previous products.

How Michael Kors is Offering ‘Low-Lift’ Resale
Sourcing Journal
Michael Kors PreLoved recommerce marketplace is an example of a brand managed peer to peer resale. It’s relatively low resource as the VIP Micahel Kors members do most of the heavy lifting. VIP PreLoved members upload photos, set the asking price, write the descriptions and current conditions. MK just has to verify and approve submissions for accuracy.

Heinz and thredUP Drop Vintage Drip Collection Celebrating the Iconic Ketchup Stain
PR Newswire
You want a designer ketchup stain