Fashion: which second-hand models are the most profitable for retailers?

Since 2021, second-hand offers have been multiplying among fashion retailers. In an analysis carried out by mind Retail among some 30 retailers, we see that the models and their associated profitability vary between the different market segments (mass, mid-market, luxury). While this activity is profitable for premium brands, it has also become a major loyalty lever at a time when acquisition costs are exploding.

Through Bleuenn Fequant. Published on 31 March 2023 à 18h02 - Update on 03 April 2023 à 17h06

In-store vintage selection corners, second-hand clothing trade-ins in exchange for vouchers and a resale marketplace between individuals. In two years, the second-hand ecosystem has evolved. Mind Retail identified around 30 retailers involved in the resale of second-hand items, with differing models.

“The resale business model depends on the brand. Some models can’t work with certain products that sell below a certain amount,” explains Félix Winkler, Co-founder of Reflaunt.

Three main types of second-hand initiatives

1. multi-brand second-hand corners in stores

System: The idea is to open a multi-brand second-hand clothing sales area in stores. These areas offer items sold at prices 40% to 80% lower than new.…