Second-hand shopping is certainly not a new phenomenon for both businesses and consumers. In response to fast fashion and ‘toxic’ retail, re-commerce is recognized as a sustainable new solution to old problems and the notion of what counts as ‘waste’ is beginning to change.
With the resurgence of thrift, upcycling and luxury re-commerce, apparel resale alone is projected to be a $64 billion market by 2024. But how exactly did we enter the re-commerce economy, and what does that mean for the way we view overstock?
Consumers have become retailers
Resale sites were born in the mid-90s when eBay and Amazon emerged and gradually evolved into multi-channel e-commerce platforms. As websites began to grow, they offered brands the opportunity to gain greater reach through the new consumption models. The peer-to-peer engagement these sites offer allowed consumers to easily resell clothing and other items to each other, with little emphasis on sustainability and more on pragmatism.
Now, the spread of re-commerce in the fashion market has fueled a boom of C2C resale platforms like Depop, Vinted and Etsy. These websites create communities based on the spirit of entrepreneurship and ultimately enable consumers to become the ‘brand’ themselves. 57% of Gen Z and 50% of Millennials said they consider resale value before purchasing luxury items. Young people, especially Gen Z and Millennials, are already buying with the intent to resell rather than own permanently, thus extending product lifecycles.
Consumers have proven that there is a thriving marketplace for the re-commerce model. Unlike brands, used clothes in consumers’ wardrobes are not “junk” to be ashamed of, but a liberating, sustainable and frugal way of dealing with excess; the word “waste” is not part of their vocabulary. It’s this new slang for debauchery that has caught the attention of brands.
Brands have always been laggards to changing consumer mindsets and trends. More recently, the rise of the consumer-centric luxury market has inspired fashion brands to explore re-commerce as a more sustainable and lucrative solution to excess inventory, both through in-house resale initiatives and through strategic partnerships. The growing relationship between B2C marketplaces and fashion brands has further enhanced the reputation of pre-owned luxury items, and brands are beginning to build consumer confidence as they begin their resale journey.
This adoption of re-commerce marks the beginning of the re-commerce economy. “The ‘permafrost’ is beginning to melt as brands begin to understand that resale is an opportunity – not a threat,” said Raffy Kassardjian, CEO and Founder of RLVD.com Parker Lane Group. Since an average consumer throws away 31.75 kilograms of clothing every year, this opportunity can also be applied to the “national wardrobe”.
Within this shifting framework of abundance and ownership, Parker Lane Group is launching RLVD.com (also pronounced “Reloved”), a unique first- and third-party D2C/B2C fashion marketplace that will include rental and purchase options for used parts. RLVD.com will start with a B2C model and plans to expand to C2C soon after, allowing both brands and consumers to resell their products on the site.
“Conscious consumption and fast-moving trends have usurped the traditional ownership model,” said Lisa Panvino, head of strategy at the Resale as a Service (RaaS) platform. “New technologies are allowing people to see the transience of fashion – this paradigm shift has transformed consumers into potential ‘entrepreneurs,'” she added.
PLG is redefining out-of-touch paradigms
Even as consumer mindsets change, brands justify their own output in ways that push the boundaries of acceptable levels of production. Re-commerce can help the industry apply a degrowth philosophy to their apparel production and sustain the economy in a way that benefits society and the planet.
Parker Lane Group recognizes that while fashion is a fundamental part of our lives, the balance between fashion and carbon footprint needs to be restored in order for our production levels to be in harmony with nature.
The company is trying to bring a breath of fresh air and recognizes that real change is on the way. It embraces the paradigm shift around ownership and seeks to build the infrastructure of the re-commerce economy by redefining waste and overstock among consumers and retailers.
By capturing this shift, RLVD.com will help present brand and consumer “overstock” as apparel with real value. Ultimately, part of their mission is to help brands recognize that it is no longer acceptable to label excess inventory as “waste.”
“The dilemma is that the branding understanding of excess inventory solutions is completely opposed to changing consumer habits and the value narrative,” commented Kassardjian. “They find solutions in out-of-touch representations and ignore the development that is to come.”
Brands need to deal with excess without fantasizing about worst-case scenarios like brand erosion, as this mindset stays too far removed from consumer thinking. Otherwise, they’re backing themselves into a corner where they prioritize the intrinsic value of the brand, which in reality doesn’t exist without the consumer.
Kassardjian explains that Parker Lane Group “has become a metonym for re-commerce and excellence. RLVD.com will emulate this by becoming a unique D2C and C2C marketplace.” By exploring a broader range of services, the marketplace will be emblematic of the claim that the industry needs to change its mindset on excess inventory. This will allow brands and consumers to come together and offer a “truly community-led service that challenges redundant structures of the past.”
“We are aware that fashion pollutes the environment, but we fight to minimize the impact. People will still buy clothes, but how they shop and what they buy makes all the difference,” explains Aleksandra Banasik, COO of Parker Lane Group. “We want to be part of the solution, not part of the problem.”
Rather than exacerbate the problem by producing more product, RLVD.com wants to be creative in how they address the overstock dilemma, whether for individuals or businesses, by examining resale values and extending the lifecycle of products. In addition to carbon-neutral packaging, carbon-neutral shipping and a subscription model, RLVD will also work harder to encourage conversation about sustainability in its online community through social media, industry events and the web journal.
PLG is building the infrastructure of the re-commerce economy
Understanding the complexities involved in managing the re-commerce process and supply chain requires a great deal of expertise. Most don’t have the technology or expertise to delve into it, and therefore risk being left behind.
While many brands previously refused to consider alternatives, Parker Lane Group has spent the last decade honing a world-class solution. RLVD.com’s technology, supply chain and experience underpin all touchpoints in this growing ecosystem of brands, consumers and resellers working together. The Marketplace makes it incredibly easy to manage inventory.
Parker Lane Group’s end-to-end supply chain seamlessly brings together resale, rental and recycling services to provide transparency, value, efficiency, sustainability, scale and solutions. RLVD.com takes responsibility for quality control, marketing, logistics and fulfillment from the moment brands and
Individuals have signed up and integrated their inventory using the tools provided. The marketplace will leverage new product authentication technologies in the luxury resale market, such as NFT and blockchain, to set an industry standard and provide high-level authentication for a tamper-proof experience.
The Parker Lane Group recognizes that the “property landscape has shifted from artifact to experience, with circularity in mind,” as Kassardjian puts it. For this reason, RLVD.com’s mission is to provide a balanced consumption approach for brands, consumers and the environment in the context of a re-commerce economy of degrowth.
About RLVD.com
RLVD.com is a London-based luxury fashion marketplace offering affordable Reloved and Preloved items to rent or buy. Founded by Parker Lane Group, the company is part of the re-commerce firm’s comprehensive Resale as a Service (RaaS) solution and is based in Poland. RLVD.com is scheduled to launch in May 2022. Internal resources are currently being increased and employees are being sought.
