Resale: Top 10 benefits for brands
Fashion resale is beneficial both for the planet and for people, but how does it impact brands? What benefits does it bring?
We all know that fashion resale is great for sustainability because it extends the life of garments and reduces textile waste. It is also beneficial for consumers, who can access quality garments at lower prices, or find rare and vintage garments to personalise their style. But what about brands? Is fashion resale also good for companies too? Yes, it is.
Brands are organising resale programmes that help consumers to buy and sell the brand's pre-loved products, by offering a secure place, equipped with product authentication systems, incentives for collecting used garments and ratings and reviews from other users.
But what is in it for the company? Let’s look at the main benefits of resale programmes for brands.
The benefits of resale programmes for brands
The benefits of resale programmes for brands touch on many aspects, from reputation to product quality, from sustainability to bottom line.
1. Increased awareness and appeal
Resale programmes demonstrate a commitment to sustainability that appeals to eco-conscious consumers. By offering a more accessible brand experience, both factors mean brands can attract new customers who may not have considered purchasing their products before, many of whom may convert to buyers of new products at a later moment.
2. Greater traffic and engagement
Resale programs offer a unique shopping experience that can't be found anywhere else, which provides an additional reason for consumers to engage with the brand. Helping to drive traffic to a brand's website or brick-and-mortar stores, which can lead to increased sales.
3. Increased loyalty
Being present during the resale process is ideal for incentivising sellers into purchasing another brand-owned product by offering trade-in vouchers to spend on new or pre-loved brand products. Moreover, resale programs foster stronger consumer relationships and enhance satisfaction by offering a convenient and seamless way to sell pre-owned clothes.
4. Greater sustainability
The resale market is a key part of the circular economy. By offering a resale program, brands can help reduce waste and pollution in the fashion industry. Resale programs can help support other circular initiatives, such as rental services, textile recycling and upcycling.
5. New revenue streams
Resale programs generate additional revenue for brands through commission fees on pre-loved sales, as well as from increased sales by incentivising redemption of buy-back vouchers. Moreover, they contribute to enhancing the value of a brand's products, as consumers are willing to pay a premium knowing they can resell them back to the brand.
6. Improved product quality
Brands come into contact with the used product and can observe any common weak points such as failing accessories, and better understand which materials and designs have proven to be more durable. This feedback about the performance of their products can be used to improve the quality of future products.
7. Greater operational efficiency
Value from unsold stock and returns can be recovered through resale platforms, and it keeps them out of landfills, saving brands money on waste disposal costs. Resale helps brands manage inventory, reduce overproduction, and optimise stock levels.
8. Improved market insights
By actively engaging in the resale of their products, brands can capture valuable data and gain actionable insights into emerging consumer and dynamic market trends. They can leverage these insights to inform and shape their innovative product strategies moving forward and gain a competitive advantage.
9. Greater brand control
Resale programmes can support the sale of new products by underlining important values, such as product quality, sustainability, and demonstrating innovation. Resale provides brands with greater power to control the overall market for their products.
10. Greater innovation and alignment
Resale demands rethinking product design and organisational processes. In doing so brands create an opportunity to unlock new efficiencies and build team alignment around innovative and motivational common goals.
Before discovering the main benefits of resale for brands, let's see how they can foster resale.
Connected Products with Digital IDs have an important role to play in delivering successful resale strategies, by increasing the required trust between the buyer and seller, optimising manual product processing and empowering end-to-end tracking throughout the resale purchase journey.
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