Technology-Platform Recurate Puts The Power Of Resale Into Fashion Brands’ Hands

 Technology-Platform Recurate Puts The Power Of Resale Into Fashion Brands’ Hands


The second sale is the hottest segment of the fashion market in the world. Over the next five years, apparel sales are expected to grow more than three times faster than the primary market, from $ 96 billion in 2021 to $ 218 billion in 2026, according to the latest Thredup Resale Report, the most authoritative study on fashion sales as well.

And within the secondhand fashion market, online sales are the fastest growing, expected to reach 50% of the market by 2024 and grow nearly four times by 2026. Currently, third -party markets , such as Poshmark, Vestiaire Collective, eBay, The RealReal and Thredup, have enjoyed most of the largesse.

Even if some brands have established their own sales programs, such as Patagonia, Eileen Fisher, Lululemon and REI, other brands that want to participate in the action are more likely to partner with Thredup using the Retail offering. -As-A-Service. Macy’s, Target

TGT
and Gap

GPS
is one of the most famous names.

Now Recurate offers brands another alternative. Recurate is a technology platform that allows brands to enter the ground floor with their own fully integrated resale capability on their ecommerce sites. And the service is not just limited to fashion, accessories and footwear, but electronics, outdoor gear and equipment branded companies as well.

Founded in 2020 by CEO Adam Siegel and COO Wilson Griffin, the company raised $ 14 million in Series A funding, bringing the total outside investment to more than $ 17.5 million. The funds will be used to streamline brand integration, improve data analytics capabilities and find solutions for brands to resell unsold inventory and product returns, along with exploring auctions and other upcycling opportunities.

“Recurate was built to quickly and seamlessly integrate resale into every commercial experience, increasing the sustainability of our brands, customer loyalty and revenue,” Siegel said in a statement.

Yelena Shkolnick, co-founder of Jump Capital, which is leading this phase of the investment, added, “We expect that the ease of purchasing and listing items through brand sites will bring the brand to many new customers, help them retain existing customers and ultimately bring millions of customers into the circular economy. ”

Unlike buy-back programs where the brand receives inventory from vendors, processes, warehouses and ultimately sends it to the next buyer, Recurate supports peer-to-peer resale.

Like Poshmark or eBay, under the peer-to-peer model the seller lists and ships their items directly to the buyer. Recurate says this model is the most innovative for a brand with minimal upfront and ongoing cost and allows retailers to get the most value out of their product.

Recurate addresses one of the weaknesses of the peer-to-peer model: authentication. It checks all listings and provides digital ID verification. Its customer support team also handles questions and disputes.

But peer-to-peer models provide a significant advantage to brands: greater customer interaction and engagement. Customers are encouraged to go to the brand site not only to make a new purchase but to pass on the previous one. It puts a new spin on the traditional definition of circular economy.

“In the branded resale model, there are many opportunities to deepen the connection between the brand and the customer story and to build community,” Griffin shares in Vogue Business. “That’s where we see branded resale that is in line with the larger business that these brands are promoting.”

Recurate currently boasts more than 45 brands that have signed up to its service, including Steve Madden (Re-Booted), Frye (The Frye Exchange), Ministry of Supply (Infinite Resale) and Mara Hoffman (Full Circle Marketplace) . And the company expects the number to grow to more than 100 partners by the end of the year.

CEO Siegel sees the Recurate platform as a natural evolution of the resale market from third-party platforms to brands taking a stake in owning the lifecycle of their products. And it gives brands a way to give customers additional benefits from their ongoing relationships with them, which is essential to placing brand loyalty on steroids.

Dubbing this phase of reale 2.0, he said, “Resale 1.0 are third-party markets. They make it cool and have proven that there is a real market. Now brands know that there is a chance.They see their products being sold on third party platforms and think, why can’t we benefit from that?



Source link

Related post