On the Podcast: Cracking the Code: Why Resale Succeeds for Some and Eludes Others with Trove's Andy Ruben

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The resale industry is witnessing significant growth.

According to thredUP's annual resale report, the global secondhand market is projected to nearly double and reach a value of $350 billion by 2027, outpacing the global apparel industry by threefold. As consumers increasingly seek more responsible ways to engage with fashion, resale platforms and secondhand marketplaces have gained momentum, prompting fashion brands and retailers to launch their own resale initiatives to attract new customers, enhance their brand image, create an additional revenue stream, and boost their sustainability credentials all while catering to evolving consumer preferences and demands.

As a result, various resale options have emerged, from resale-specific websites to plug-and-play solutions like Trove, enabling brands and retailers to seamlessly integrate resale into their operations.

However, the soaring success of the secondhand market does not guarantee automatic success for brands and retailers that simply adopt a resale model. While some have seamlessly integrated resale into their business models and thrived, others have struggled to find the right formula for success.

In today’s episode of the Crash Course Fashion podcast, host Brittany Sierra chats with Trove’s Founder and Executive Chairman, Andy Ruben. Together, they delve into key strategies for success in the secondhand market, exploring how companies can make resale a profitable part of their business model while navigating the industry's nascency.

Short on time? Get straight to the goods:

• Asking brands to stop growing is not a practical solution. Instead, the focus should be on finding ways for brands to decouple growth from producing more items. [13:43]

• How Trove secured Patagonia, REI, and Eileen Fisher as pioneering early adopters of the platform. [20:57]

• According to Trove’s Brand Resale Index, the outdoor industry is the furthest ahead in embracing resale. On the other hand, despite having high customer demand, the luxury sector has been more apprehensive about venturing into resale and owning its own platform despite customers already seeking pre-owned luxury items from other platforms. [29:14]

• When Patagonia launched its resale platform, it changed the overall perception of the resale market. Other brands in the fashion and outdoor sectors took notice and wanted to replicate the model. But while Patagonia's approach worked well for their brand, other brands shouldn’t copy Patagonia's strategy, especially in the luxury sector. Instead, they should find their own unique way to implement resale that aligns with their luxury brand identity and storytelling.

  Luxury brands have the potential to excel in resale by staying true to their brand essence and maintaining a strong relationship with their customers. It's not just about selling pre-owned items but rather leveraging the power of storytelling, brand equity, and customer loyalty that luxury brands have already cultivated. [35:15]

• The most significant opportunity for brands in terms of decarbonization and sustainability benefits lies in the resale of premium or higher-priced items. This is because such items are typically of higher quality and have a greater demand in the secondary market. Lower-priced brands may not have as much demand in the secondary market because they are more accessible and readily available for purchase as new items. [36:41]

• Why Andy believes brands should maintain ownership of their resale program and select a partner aligned with their vision to build their customer base. The experience and scale of the partner are crucial, as they can lead to more efficient implementation and better results. The brand should avoid hasty decisions based on cost savings and instead focus on a partnership that contributes to long-term growth and benefits the overall brand. [40:22]
  

Additional Resources:

• Check out Trove

• Read Trove’s Brand Resale Index

• Read thredUP’s 2023 Annual Resale Report

• Make your next career move with the SFF Job Board

• Follow SFF on Instagram ⁠@thesustainablefashionforum⁠

• Connect with Brittany on LinkedIn

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