We buy and dispose of clothes faster than ever before, creating one truck load of clothing waste every second. The modern fashion industry is phenomenally wasteful. It’s an attractive proposition for shoppers, and most importantly, for the environment too. They’re offering cash for clothes that you’ll never wear. Of course, as children often outgrow their clothes long before they are worn out, they are perfect for the resale market. It’s proven seriously popular for both women’s and kid’s clothes. A real triumph of the circular model that mainstream fashion has still failed to adopt. And there’s no doubt it’s working, with more than 65 million garments redistributed to date. What makes ThredUP unique is that they have refined their logistics to make it as seamless as possible for the user, so there’s really no excuse to hold onto the clothes that you no longer wear.īy removing the stigma from used clothing, their goal is to inspire a “new generation of shoppers to think secondhand first”. ThredUP will buy your used clothes in exchange for a little cash or shop credit, they sort through them, list them on their site, and sell them on. ![]() In the meantime we’ll have to settle for one of the ThedUP equivalents in the UK. Originally conceived as a way for men to swap unused shirts in 2009, ThredUP has rapidly morphed into the worlds biggest Fashion resale market with more than 35,000 brands, sold at up to 90% off retail prices.ĭespite their success they are still focussed on the US market, so ThredUP UK doesn’t exist yet. Ĭomments, questions or feedback? Email us at. To become a Vogue Business Member and receive the Technology Edit newsletter, click here. “People will like the tech play, and Wall Street likes it when they see multiple streams of revenue.” This puts Thredup in a good place, he says. Saunders says that the market is big enough and growing fast enough “for everyone to get into the action”, but resale companies will be working to “carve out a sustainable and differentiated niche”. “So many brands take their lead from the guys who are at the top.” While Thredup’s strategy is not to “go aggressively into the luxury space”, with the mass market six times the size of the luxury market, the higher-priced sector plays a role in endorsing resale. Reinhart says that Thredup’s scale is its competitive advantage. Much of its investments have been in automating the onboarding of items and developing a database to identify and value items across 35,000 brands and 100 categories. It can process more than 100,000 unique stock-keeping units a day and has built infrastructure designed for “single SKU” logistics. It operates five distribution centres and is currently able to hold 5.5 million items, which it expects to increase to 6.5 million by the end of 2021. In 2020, Thredup spent $100 million on operations, product and technology, up from $82 million the year prior. ![]() Partnering with brands to onboard more inventory will help Thredup reach profitability, says Saunders.Īccording to Thredup’s S-1 filing, technology is its largest expense. In addition to its partnership with Thredup, M.M.LaFleur uses Archive to power “Second Act", a peer-to-peer option on its own website, which M.M.LaFleur founder and CEO Sarah LaFleur views more as a customer loyalty channel. The resale market is expected to reach $36 billion by 2024, representing a compound annual growth rate of 39 per cent since 2019, making it the fastest-growing sector in retail, according to a January 2020 survey from GlobalData. Paris-based Vestiaire Collective coined a $216 million deal with Tiger Global Management and luxury conglomerate Kering, who took a 5 per cent stake. Thredup is the second resale company to go public this year, following Poshmark’s January IPO and The RealReal in 2019. ![]() But Thredup, which holds inventory from sellers, is betting its white-label technology can help not only brands but also its own profitability.Ĭompetition in resale has surged in the past year, with heightened industry attention on the secondhand market, due to its relevance among younger customers, substantial growth and sustainability metrics. With 1.24 million active buyers, 428,000 active sellers and $186 million in revenue in 2020, it is yet to turn a profit. Thredup raised $168 million at a market value of $1.3 billion in its initial public offering (IPO) on Friday. Secondhand clothing site Thredup, now a publicly traded company, wants to build a resale technology solution for brands alongside its customer marketplace.
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