Retail's obsession with resale is not stopping with Etsy's purchase of British Fashion App Depop for $1.6 billionThe biggest retail trend of the moment isn't really new: it's all about resale.It was made even more concrete by the recent acquisition of Depop by Etsy worth $1.6 billion. It appeals to conscious consumers who are becoming more concerned about fast-fashion. A new report from GlobalData shows that secondhand clothing is more valuable than fast fashion at $84 billion. Fast fashion is projected to be worth approximately $40 billion.It's not surprising that all the major retailers have been enhancing their position in resale. ASOS, Gucci, ASOS and Levis have launched luxury consignment websites, ASOS allows secondhand clothing on ASOS Marketplaces, and Gucci launched an online luxury consignment store.Resale offers a circular economy, less waste, and easy access to clothing at lower prices. The trend reports show that it checks many boxes for today's consumer. Are small businesses now able to follow the trend?Many small businesses are following this trend, whether it's starting a resale or adding circularity to an existing business model.Reselling can be added to a small business modelMany small businesses have begun to add resale to the business model in a similar fashion to Levis or Gucci.Joon Rajkovic founded British luxury clothing brand Mignonnette London. It is known for its timeless, elegant, and slow fashion designs. Mignonnette Reimagined, a brand new program, will allow you to return your Mignonnette London gown in exchange for credit to purchase a new one. This allows you to keep long-standing customers and supports the brand's ethical values.Platforms for small business resaleOthers are also starting their own resale websites. Anne-Marie Tomchak is a former digital director at Vogue and the founder and CEO of sustainability tech company DesignTracker. She also founded the fashion non-profit ShareJoy. Users can donate their clothes to the platform to be resold and all proceeds go to charity. ShareJoy was founded by Tomchak at the beginning of lockdown to raise funds for mental healthcare.We decided to create a resale site because there are literally tens or millions of clothes lying dormant in people’s wardrobes. Despite an increase in mental health services demand, donations to charities were declining. We decided to make use of the resources available in the circular economy to support the third sector. Tomchak explains that our mantra is "What's in your closet has the power of transforming lives."Tomchak noticed a significant shift in attitudes towards secondhand clothes. The fashion industry is known for creating an appetite to try new things. However, our definitions of new are changing. A new outfit can be rented or resold. Consumer attitudes towards resale have changed dramatically.She adds that we are not trying to preach. We were trying to move away from dictating what is trendy towards allowing people the freedom to express themselves through clothing.Resale technology is advancingSmall businesses are now able to resell as technology improves. This is in addition to the shift in consumer behavior.ShareJoy uses Depop to Sell - an excellent example of how this massive platform is helping small businesses start resale companies as well as being used privately by individuals.Tony McGurk is the chairman and co-founder at Cryptocycle. He uses blockchain technology to track any item, including garments, throughout their entire lifecycle.An NFC tag, which looks similar to a button can track the journey and life of a garment. This tag is inexpensive (less than 1), and allows any business to track the journey of a garment. This can allow the brand to track clothing donations and offer rewards for the purchase of new clothing.Small businesses can now easily include the circularity of the resale in their business model using a white-label application. Customers also have control over this circularity.The resale market is booming so it makes sense that infrastructure for facilitation is developing rapidly. Although the future may not be certain, it is possible to expect that these advancements will follow the money and grow the market further. There is no better time to start small sustainable businesses in the resale market.
