Charlie Casey is the CEO and co-founder of LoyaltyLion. All opinions are the author’s own.
Things are changing. Brand new isn’t the be-all and end-all, and preloved is the new buzzword. Consumers care about sustainability and are willing to shop differently.
A 2024 PwC survey revealed that 80% of consumers are willing to pay more for sustainably produced or sourced goods and are prepared to pay a premium of an average of 9.7%. As a result, the fashion industry is witnessing a significant transformation, with the resale market experiencing fast growth. Projections from ThredUp indicate that the global secondhand apparel market will soar to $350 billion by 2028, reflecting a compound annual growth rate of 11% and outpacing traditional retail by a substantial margin.
The rise of resale platforms
In recent years, resale platforms such as Vinted have streamlined the process of buying and selling secondhand clothing, making preloved items more accessible to a broader audience. These platforms have become so integral to consumers’ shopping habits that when someone inquires about the origin of a garment, the response is often “I got it on Vinted,” rather than mentioning the original brand or label. While this shift has democratized fashion and promoted sustainability, a fallout is that it inadvertently diminishes brand recognition and equity as the spotlight shifts from the designer to the reseller. That’s a tricky place for brands to be.
Brands reclaiming the preloved market
Recognizing the need to maintain their presence in the resale space, many brands are launching their own preloved or resale sections. We’ve seen a rise in vintage or preloved spaces as more brands jump on this trend. And it works. By doing this, the brand regains control over the second life of its products and ensures that its brand remains at the forefront of consumers’ minds. The strategy not only preserves brand equity but also allows companies to uphold quality standards and brand integrity in the resale market to ensure better ongoing customer experiences. In addition, it means they’re effectively selling a product twice, so it’s good for the bottom line, too.
Expanding customer base
It’s also possible to expand the customer base, not just retain who you have. By entering the resale market, brands open doors to new customer segments. For instance, students or budget-conscious shoppers who might find new items beyond their financial reach can now access these brands directly rather than via preloved platforms. Other students will then see that brand where they might not have seen it before and decide they want to wear it, too. ThredUp reports that 40% of resale customers are new to the brand, highlighting the potential for brands to expand their audience through resale initiatives.
Integrating resale with loyalty programs
So, what does this mean for long-term loyalty? Merging resale platforms with loyalty programs offers a significant opportunity to grow the brand in terms of both revenue and reputation. By offering points or rewards for buying or selling preloved items, brands encourage customers to engage and purchase directly with them rather than third-party resale platforms. This approach not only incentivizes purchases but also strengthens the bond between the customer and the brand, with a strong potential for increased revenue as they later return to buy either more preloved items, or perhaps fully-priced products too.
Integrating resale into loyalty programs makes it more likely that a second-hand customer will return to purchase new items. As they earn more points, they will unlock rewards like discounts or reduced shipping that make new products more accessible. They will also progress through loyalty tiers, unlocking exclusive perks such as early access to new collections or double points days, further promoting repeat purchases at the full price. It’s a win for consumers and a win for brands.
Expanding the advocate pool
Word of mouth matters. If retailers cultivate a broader base of brand advocates through resale initiatives, they can benefit from increased user-generated content, reviews and referrals. Satisfied customers are more likely to share their positive experiences, both online and offline, all enhancing the brand’s reputation and reach. And the people they tell about your brand may not buy preloved, but go straight for full price and new products.
Pioneers in brand-operated resale
Several brands have already embraced this model. Represent Clothing and Never Fully Dressed have launched their own resale platforms that integrate with their loyalty platforms, allowing them to maintain control over their brand image and customer experience in the secondhand market. Fitness brand Lululemon was a pioneer in this space, launching a resale program for their leggings years ago, setting a precedent for other brands to follow.
So what’s next?
It’s clear that the resale market’s rapid growth presents both challenges and opportunities for fashion brands. Sustainability and value are paramount to consumers.By aligning with market demands, brands can position themselves for long-term success. Getting your resale platform aligned and integrated with your loyalty programs is a way to take control and grow both revenue and loyalty — a compelling offer.
