It’s no mystery that the fashion industry has been hugely impacted by
the Covid-19 crisis. Fashion companies saw their sales plummeting as stores
closed, fashion events were cancelled or postponed and consumer shopping
behavior changed drastically.

But there seems to be an exception to the current bleak reality of the
fashion industry: resale platforms have been reporting an increase in sales
and online traffic since the start of the virus. Whether this was due to
consumers using the extra time to do a thorough spring cleaning or looking
to their closets for an additional source of income, the second-hand market
has largely withstood the economic downturn brought about by the
crisis.

In March of last year, resale platform ThredUp released its that projected the
secondhand market to grow from 24 billion dollars to 51 billion dollars in
the next five years. By 2028, resale will be 1.5 times bigger than fast
fashion and used items are forecasted to account for an average of 13
percent of people’s wardrobes. People belonging to the Millennial and Gen Z
generations are driving this growth, as 18 to 37 year olds are buying
pre-owned apparel, footwear or accessories 2.5 times faster than other age
groups.

Another recent trend saw traditional retailers partnering with
secondhand companies to appeal to changing consumer tastes and make their
debut in resale. In February, announced that it would be joining ThredUp’s
Resale-as-a-Service program that gives consumers the opportunity to resell
their clothes. Further partnerships include Vestiaire Collective and Asian
fashion brand Zalora, The RealReal and Stella McCartney and Depop and
Dickies.

Resale companies also have to thank their young audience groups for
working to integrate the topic of sustainability into the fashion
industry’s status quo. A 2018 commissioned by British NGO Fashion
Revolution showed that one in three European consumers take brands’ social
and environmental impact into account when shopping.

FashionUnited wanted to find out what challenges resale platforms have
been facing during the coronavirus crisis and whether they believe their
increased growth to be halted by the aftermath of the pandemic. Marie
Petrovicka, vice president of international at Depop, Max Bittner, CEO of
Vestiaire Collective, and Natalie Tomlin, spokesperson at ThredUp, shared
insights on continuing operations during the lockdown period, changing
consumer mindsets, new ways to interact with consumers and future
forecasts.

Depop

As countries around the world abided by lockdown measures, London-based
Depop joined the list of resale companies that reported an increase in
traffic numbers and elevated sales. Since April 1, the company saw a 163
percent year-over-year increase in new app signups, a 200 percent
year-over-year traffic growth in the US and a 300 percent year-over-year
increase in items sold. Marie Petrovicka explained that the results of a
recent user survey found that “many sellers have been using Depop as an
alternate source of income”.

Petrovicka also expects the increased traffic to last in the
post-coronavirus era: “It has become clear that the pandemic has shined a
light on the realities of the current fashion ecosystem. Depop is
representative of a step in the right direction, as we value supporting
young entrepreneurs and helping the fashion industry to become more
sustainable. We are hopeful that our community will continue to engage with
our platform beyond this moment in time.”

Depop’s Generation Z audience group of under 26 year olds are the
biggest drivers of growth, often acting as ambassadors. Additionally, the
platform is popular among social influencers who further increase traffic
when talking about their shopping or buying experiences to their
communities.

Despite the positive growth that the platform has experienced, the
coronavirus has simultaneously presented the company with the challenge to
adapt to the current climate. Wishing to continuously support its
community, especially those who rely on resale as their primary source of
income, Depop has presented its users with tools to help them carry on
during lockdown.

“Implementing numerous resources, such as contactless home delivery and
pick up, remote sourcing for sellers and direct and constant communication
through our various channels was essential,” Petrovicka clarified.

Depop also focused on notifying sellers about making use of sanitary
packing methods and scheduling USPS delivery pick-ups as safe shipping
options. This has helped sellers to continue operating their Depop stores
and adapt to shipping effectively from home.

We believe that we will continue to see a shift to more conscious
consumer habits within the fashion industry.

In addition to ensuring that sellers could continue operations
throughout the lockdown period, the company has been connecting with its
audience through the “Stay at Home Sessions” interactive Instagram series,
which features virtual styling sessions, live performances and tutorials
every Friday.

Petrovicka also trusts that Depop’s young audience will shift consumer
mindsets in a more sustainable direction in the post-pandemic world: “We
believe we will continue to see a change to more conscious consumer habits
within the fashion industry, and that this change will be spearheaded by
the resale industry.”

The coronavirus will not impact the way Depop will proceed and it will
continue to do what it is good at. “We will continue to enable our
creative, entrepreneurial community to both express themselves with
creative agency on our platform, as well as empower them to turn their
passions into a business,” Petrovicka concluded.

Vestiaire Collective

Like Depop, Vestiaire Collective has also witnessed positive growth in
its orders, which has allowed for a quick rebound from the initial impact
of Covid-19. In early May, orders were up 54 percent in comparison to the
pre-pandemic February average and deposits have since increased from an
average of approximately 10,000 to 13,000 new pieces being added to the
inventory every day. The company has also experienced its biggest sales day
ever in May.

Max Bittner trusts that the coronavirus will not be able to hinder the
growth that the resale market has been experiencing in previous years: “We
believe that the current crisis will further drive the adoption of
e-commerce, the consumer switch to sustainability and the increase of
consumer resourcefulness as more people look to their closets as an
additional source of income. All of this will accelerate the rapid growth
of the resale market.”

Despite the global lockdown, Vestiaire Collective has been able to
efficiently continue operations by equipping its logistics hubs with safety
measures, including employee shifts, social distancing guidelines,
mandatory face masks and increased sanitization of buildings. At the
beginning of the pandemic, the company had to close its US logistics hub in
response to an executive order of New York State. Meanwhile, after being
deemed an essential business, Vestiaire Collective has been able to reopen,
which, according to Bittner, “has been an honor, as the government realized
what a valuable resource resale platforms are for people who want to raise
funds from pieces in their wardrobes”.

As many of its key markets have been impacted by Covid-19, the resale
platform has been attempting to protect and support its employees and
customers. In the interest of sellers, Vestiaire Collective has reduced
commission on products priced from 150 to 300 euros, allowing them to earn
more and list items at a lower price. The Direct Shipping service, which
grants buyers the option to bypass an authenticity check, has also been
successful during this period of uncertainty. Aside from Europe, this
shipping option has recently been launched in the US, with Asia to follow
by the end of the year.

“Launched in September 2019, the Direct Shipping service is increasingly
popular with a growing number of customers,” Bittner said. “Currently, over
50 percent of orders in the EU are fulfilled through this service, which is
growing at a rate of 60 percent month-over-month.”

In order to avoid mass layoffs, the French government has introduced the
‘chômage partiel’ unemployment scheme, which offers workers an allowance of
up to 1,000 hours per year per employee. A small fraction of the
Paris-based Vestiaire Collective team has been able to benefit from this.

Vestiaire Collective has similarly found new ways to facilitate
engagement with its customers during lockdown: “After listening to feedback
on Instagram, we launched our social media initiative #HomeMadeByVestiaire,
which was inspired by our community’s requests to have more insight from
our team, along with tips on how to use our app and how to buy vintage,”
Bittner explained.

I think customers will continue to question and change their
approach to consumption and this has gained speed during Covid-19.

In April, in an attempt to further stimulate a sustainable consumer
mindset, the company also debuted its “Fashion Should Feel Good” campaign.
Not only did it share insights on how to reduce the environmental impact of
wardrobes, but also highlighted popular sustainable brands on Vestiaire
Collective’s platform.

In unison with Petrovicka, Bittner is also under the impression that
consumers will continue to support sustainability once the world returns to
complete normalcy: “I think customers will continue to question and change
their approach to consumption and we can see that this process has gained
speed during Covid-19. Resale and pre-owned is definitely an answer to this
consumer demand and the current climate crisis, allowing fashion lovers to
extend the lifespan of their fashion pieces and encouraging participation
in the circular economy can reduce waste.”

In the future, Vestiaire Collective will integrate the flexibility
needed during the lockdown period into its working procedures and authorize
employees to work from home more often. Bittner concluded by saying that
the company will “further increase its focus on sustainability, which is
one of its core pillars, as it believes that this will be important to
consumers following the crisis”.

ThredUp

The San Francisco-based resale platform, by also reporting increased
traffic and sales, similarly conforms to the recent trend of increased
second-hand growth during the Covid-19 crisis. Looking for entertainment
while stuck at home, shoppers have spent more time browsing ThredUp’s
website. Sales for leggings and blouses have seen a higher average over the
past month in comparison to February, with 40 percent and 30 percent,
respectively. In line with changing consumer attitudes throughout the
pandemic, as the occasion to dress up became nonexistent, blazers and
cocktail dresses have been less desired.

ThredUp pointed out that consumer demand for value and sustainability
have been important factors ensuring the growth of the resale market in the
past few years. The company expects this growth to be further accelerated
in the post-coronavirus world, as “thriftiness” will become an even greater
priority.

Though ThredUp’s distribution centers have been able to remain open for
the past few months, they have been operating at reduced capacity to ensure
the possibility of social distancing and enhanced hygiene. Nevertheless, as
it continued to accept ‘Clean Out Kits’ with unwanted clothing, the
platform did not have to stop shipping orders.

Consumers will continue to shift their spend to brands and resale
platforms that are committed to transparency and sustainability.

Many have been engaging in a ‘quarantine clean out frenzy’ as they
looked to declutter their closets and make some extra money: “We’ve
received an influx of clean out kits and first-time sellers. We’ve been
working hard to maintain the safety of our teams first and foremost as we
work to process the additional items sent in,” said Natalie Tomlin, a
ThredUp spokesperson.

In order to keep in touch with its audience throughout lockdown, ThredUp
turned to Instagram to launch its ‘Shop Her Closet’ auction series, where
customers could bid on pieces from celebrity closets, such as Whitney Port,
cast member of American reality television series The Hills.

The resale platform also drew attention to how the coronavirus impacted
sustainable consumption habits: “Consumers will continue to shift their
spend to brands and resale platforms that are committed to transparency and
sustainability in the years to come,” Tomlin forecasted.

In the post-pandemic era, ThredUp will carry on with its mission to
inspire the next generation to think ‘secondhand’ in the path towards a
circular fashion future.