Resale is not that ‘niche’ at all, kids are the next big opportunity
Japanese resale giant Mercari released its first “reuse report” this week, and it offered a glimpse of the scale of the resale trend.
“Although resale is sometimes seen as a niche market, its size indicates that it is an integral part of the consumer economy. In the past 12 months, 74.9% of Americans surveyed have purchased at least one second-hand item, â€said John Lagerling, CEO of Mercari in the United States (its head office is in Tokyo.)“ Three-quarters of adults participating in the reuse ecosystem shows that second-hand shopping is now almost as commonplace as going to the grocery store.
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Instead of being strictly fashion-oriented, the report (produced in partnership with retail intelligence firm GlobalData, which also fed the analytics for ThredUp) covered popular Mercari categories, from housewares to electronics in going through baby items.
With 1.6 billion items disposed of by households in 2020, according to the report, consumers are now rethinking their merchandise for resale. Already, 165 million Americans have taken the step to be considered “resellers,” selling at least one used item in the past year.
And while many would like to believe that these sellers are doing it for the greater good of the environment, most are focused on buying or saving money.
If they buy second-hand, consumers expect at least 25% off the retail price. In an online survey of 2,000 consumers from June to September, market research firm Zogby Analytics (on behalf of Mercari) found that saving money is still the number one reason for reselling purchases , cited by 74.6% of survey respondents – not sustainability. However, sustainability has been cited among other reasons consumers love pre-loved products, including product discovery, joy, and a sense of community.
The report also insisted on a gap concerning the younger generations. While Gen Z may be all-in on resale, they are still heavily modifying their wardrobe pieces. While the majority, 84.6%, of shoppers aged 18-24 bought something second-hand in the past 12 months (higher than the 82.1% of those aged 25-44), younger cohorts are always less clinging to things.
Resale is rapidly overtaking traditional retail – the US resale market is expected to more than double to $ 353.9 billion by 2030, from $ 139.6 billion in 2020 according to the Mercari report. In 2020 alone, the industry grew 153.5%, 3.2 times the 36.7% growth of the retail sector.
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With the continued maturation of women’s and men’s resale, new fashion categories are gaining ground.
Among them are children’s clothing, footwear and accessories, each of which could see a growth rate of over 400% by 2030, with children’s clothing leading the way, according to the Mercari report. By 2030, children’s resale will reach $ 6 billion, compared to around $ 1 billion today.
And there is already movement in the category.
In a separate announcement on Wednesday, Recurate, which powers the resale of dozens of brands including Mara Hoffman, Re / Done and Outerknown, broke new ground for babies and children with Misha & Puff.
The slow fashion knitwear brand also offers adult clothing – with all products inspired by Peruvian art and New England winters. Its peer-to-peer program called “Loop” offers an opportunity for owned resale, unlike the markets.
Apart from clothing, interior design, furniture and electronics are other areas of interest for repeat resale.
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