# data[].attributes.body
Earliest phases of the trend ~ shapes the evolution of a trend.

Researching the historical p. aides the prediction of future developments.

** Lawrence, Barbara. (1984). Historical Perspective: Using the Past to Study the Present. Academy of Management Review. 9. 307-312. 10.5465/AMR.1984.4277663.

# data[].attributes.body
Social theories which cause the trend to develop.

# data[].attributes.body
Future 10 years

# data[].attributes.body
Referring to current time period.

Current affairs and their impact.

# data[].attributes.body
1. Combined Introduction for all 3 trends. Brief explanation of perspectives.

2. Trend 1 ~ 4 perspectives

3. Trend 2 ~ 4 perspectives

4. Trend 3 ~ 4 perspectives

5. Conclusion? ~ Possible discussion points: Are the growth factors of any of these trends linked? Will the impact of current affairs drastically alter any of these trends?

3 TRENDS - RESALE, RENTAL, EXPERIENTIAL RETAIL

# data[].attributes.body
- established brands partnering w/ charities e.g. Anthropologie

# data[].attributes.attachment_link.readable_text
Tomorrow, US fashion and lifestyle brand Anthropologie will transform the gallery level of its King's Road store in London into a temporary showcase for a new collaboration with clothing re-use charity Traid. The two-week pop-up is selling a selection of second-hand and vintage womenswear hand-picked from Traid's warehouse in Wembley by the Anthropologie team.

Anthropologie has also introduced Traid donation banks in six of its stores in London and the south-east, and in September, a representative from the charity will run a fashion re-use workshop for some of the retailer's customers.

"This is the first time Anthropologie has partnered with a charity to host a pop-up, and it's a fantastic way to introduce our customers to Traid's work to re-use clothes," says Gill McCulloch, buying director at Anthropologie Europe. "There is space on the high street for everyone, and we celebrate the huge social and environmental value charity shops bring to local communities and beyond."

The tie-up highlights changing attitudes towards the UK's 11,500charity shops. Once seen as a sign of a deteriorating high street, today second-hand clothing is very much in vogue.

As a result, the lines between commercial fashion retail, resale and charity shops are increasingly blurred. This is both paving the way for new partnerships, and driving a new level of competition for high street spend.

Growing importance

Property developer Argent recognised the increasingly important role charity shops play when planning premium fashion destination Coal Drops Yard in London's King's Cross, which opened to the public late last year. Argent asked homelessness charity Shelter to open one of its Boutique by Shelter concept stores at the heart of the site (pictured above).

Shelter began working with fashion designer Wayne Hemingway on the Boutique by Shelter concept in 2016. There are now 12 Boutique by Shelter stores, the latest of which opened in Highgate, north London, last month. Designed by Hemingway to a higher standard than traditional charity shops, they target affluent areas of London with second-hand designer labels.

"[Argent] saw one of our boutique shops and thought there might be some affinity with what they're trying to do at Coal Drops Yard," explains David Cryer, head of retail at Shelter.

The store, which opened in February, looks more like a contemporary fashion chain than a charity shop - it is spacious and neatly merchandised, and the shop fittings incorporate reclaimed materials from the Coal Drops Yard development, such as old railway sleepers. On the rails are donations of unsold stock from local fashion retailers.

I think the fashion industry needs to realise that you can't just throw away or dispose of stuff

Mark Chapman, Charity Retail Association

"More developers need to follow [Argent's] lead, to realise that second-hand shopping can be aspirational and deserves its place in any shopping centre or high street," said Hemingway at the store's opening.

Cryer argues that, rather than competing with each other for high street spend, the commercial fashion and charity retail sectors should collaborate to achieve their shared goals: "Neither of us are in business primarily for environmental concerns, but it's a really important secondary purpose - we've got a lot of common ground.

"If fashion retailers have excess stock taking up space, and we need stock, and it stops it going to landfill, why not donate it to us? If we can promote our green agenda, which is the same agenda as the retailer's, it's a win-win situation."

Mark Chapman, communications and digital manager at the Charity Retail Association, agrees: "I think the fashion industry needs to realise that you can't just throw away or dispose of stuff. The public won't accept that [any more]. Charity shops are on the right side of the curve to take advantage of that, and they will always need stock."

In June, young fashion retailer Little Mistress launched a recycling scheme, which encourages customers to return their "pre-loved" clothing for donation to charity in exchange for a 30% discount code. The used items are donated to the UK shops of Norwood, a Jewish charity that supports families and children with learning disabilities. Little Mistress will send the shops some new stock each month.

Little Mistress CEO and founder Mark Ashton says the uptake has exceeded expectations: "We have received more that we predicted so far, and some people added notes inside saying what a good idea they thought it was. This whole area is such a huge talking point right now and we all need to do something, and quickly.

"The more brands that get involved the more acceptable it will become. We aren't talking about a whole new distribution channel here - it's little and often with older-season stock, [but] it will all help."

Consumer reach

For Traid, it was important to bring retailers into the conversation as a way of reaching consumers. Anthropologie's pop-up promotes Traid's 23% campaign, which highlights the fact that, in London alone, 23% of clothes in people's wardrobes go unworn - equivalent to 123 million garments.

"Fashion brands are starting to do a lot of work on sustainability, but they are not bringing the customers on board yet," says Andrea Speranza, head of campaigns atTraid. "We are helping them do so in concrete ways, and with a positive and empowering message."

She adds that charities offer an easy and practical way for fashion brands to improve their sustainability credentials: "Retailers are starting to understand the benefits of working with charities, not only in terms of the positive message that they are sending to more well-informed customers, but also in term of practicalities. Charities have the logistics in place to easily offer an efficient clothes recycling scheme."

Charity shops will do what they can to minimise the amount of unsold stock that eventually ends up in landfill, says Chapman, including sending as much as possible to textile recycling companies.

Another early supporter of the 23% campaign, organic and ethical clothing brand Beaumont Organic, will promote it on its website, social media channels and through email marketing. The brand is also looking into having a Traid recycling bin in its store in Manchester.

Ecommerce manager Helen Aye-Maung argues that, for Beaumont Organic, it is not so much about new customer acquisition as being seen to support the right causes: "Traid may reach customers that we haven't withour own marketing, but for us it was more that we feel this is an important message to reinforce with our customers. Sustainability is at the heart of everything we do."
Value exchange
Charities can also benefit from working more closely with fashion retailers, beyond increasing the volume of donations. Among other initiatives, the British Heart Foundation is considering ways to take advantage of the rise in online shopping, including a give-back scheme.

"We're looking at launching a concept where, when you receive your new purchase [from an etailer], you donate the item it's replacing," says Mike Taylor, commercial director of the foundation. "We pay for the postage, so other than the slight hassle of sending it back, it's convenient for the customer, and there's no cost to the retailer.

"Wouldn't it be great if, in five years' time, if you receive new clothes, you automatically send off your old stuff to charity? We're riding on the back of the logistics network already set up to service online shopping."

Taylor argues that, as more people become aware of the demand for second-hand fashion resale, charities should strive to offer retailers greater value than simply clearing unwanted stock: "It could be that a company benefits from the association with the British Heart Foundation, and reference us in their sustainability or CSR reporting.

"We also do a lot of CPR [first aid] training with our corporate partners, and we've just developed a health at work programme, where we go in and test blood pressure, BMI, and so on.

"There are more outlets for people to get rid of clothing now, so we need to work harder at the value exchange. It's great if an organisation gives us stock because they don't want it to go to waste, but it needs to be worth their while on lots of different levels - you can't just expect one-way traffic."

The rising popularity of second-hand clothing is pushing charity shops to up their game, bringing fresh thinking into the sector. For fashion retailers, this is creating new opportunities to partner with charities on a local and national level. The evolving relationship is helping both parties to meet their sustainability goals, but retailers and charities must be prepared to contribute.

# data[].attributes.attachment_link.description
Tomorrow, US fashion and lifestyle brand Anthropologie will transform the gallery level of its King's Road store in London into a temporary showcase for a new collaboration with clothing re-use charity Traid. The two-week pop-up is selling a selection of second-hand and vintage womenswear hand-picked from Traid's warehouse in Wembley by the Anthropologie team.

# data[].attributes.body
- Vestiaire Collective
- Depop
- Ebay
- Amazon
- Vinted
- Cudoni
- Grailed
- The RealReal ~ LA dep store
- Asos marketplace
- SecondLife Farfetch (handbags)
- Etsy

where are we seeing it happening? ~ Physical and digital

# data[].attributes.body
- 20-30 unique, one off Ralph Lauren pieces

# data[].attributes.headline
London waste recycling board (LWRB) and QSA partners introducing circular business models

# data[].attributes.subject
London waste recycling board (LWRB) and QSA partners introducing circular business models

# data[].attributes.body
- Ted Baker
- Farfetch
- Browns

# data[].attributes.attachment_link.readable_text
The London Waste and Recycling Board (LWARB) and QSA Partners are working with fashion retailers, including Ted Baker, to develop a range of new circular economy business models.

The retailers - including Ted Baker, Farfetch and FW - will be exploring more sustainable ways of operating through the Circular Fashion Fast Forward project.

Each retailer will explore its own bespoke approach to becoming a more circular business, developing new business models which will be trialled and ultimately, if successful, brought to market.

Projects like this also create great opportunities for learning, so case studies will be created and shared once the project is complete to help other fashion retailers and brands develop and adopt their own circular business models.

More and more businesses are realising the competitive advantage that circular business models can bring. Consumers are increasingly demanding more sustainable options from the brands they love, and circular approaches offer companies a real opportunity to create more value and profit whilst reducing their environmental impact.

"Since 2018 our Browns retail store has been in partnership with rental platform Armarium, and we have just launched Farfetch Secondlife - a handbag resale service for our customers. We are excited to be working with LWARB and QSA to build the business case to accelerate our work in this area."

Resale is a particularly strong growth area for fashion businesses to consider: a recent report by thredUP puts the value of the second-hand market at $24 billion, a figure which is expected to double in the next five years.

The Business of Fashion report, "The State of Fashion, 2019" highlights that resale is growing nine times faster than traditional retail and The Ellen MacArthur Foundation estimates that an industry-wide move towards circular fashion could add €160 billion in value by 2030.

Brands connected to the project are motivated by the chance to prove the benefits of circular business models.

Thomas Berry, Director of Sustainable Business at Farfetch, says: "Circular models like resale or rental are big commercial opportunities for Farfetch. They are a very natural extension of our long-standing vintage offer, and we have started to pilot a few new models.

"Since 2018 our Browns retail store has been in partnership with rental platform Armarium, and we have just launched Farfetch Secondlife - a handbag resale service for our customers. We are excited to be working with LWARB and QSA to build the business case to accelerate our work in this area."

Sustainable fashion

Customers are also the main motivation for Kate Wakeling, Ted's Conscience Manager at Ted Baker, who says: "Ted Baker are excited to be exploring opportunities within the circular economy and are pleased to have teamed up with QSA Partners and LWARB.

"Ted's wholly unique way of looking at things means we look forward to delivering something very special and meaningful for our customers."

FW is an exciting new outdoor brand launching in Autumn 2019.

Anna Smoothy, FW's Senior Marketing Manager, emphasises that sustainability is at the core of what they want to achieve: "FW's approach to sustainability is an open-ended conversation. We are constantly searching to refine our materials and reduce our impact. At FW, quality is sustainability. We make products to last while incorporating eco-materials that are proven to be durable like Oxford Recycled Yarn.

"We are not just making eco-friendly products destined for landfill - we would like to underline the fact that we are developing a Repair Program with QSA and LWARB so that our fans invest in FW for life."

Megan McGill, Programme Manager for the C&A Foundation, is pleased to see these important projects underway: "The fashion industry needs to rapidly adopt new business models that increase the use of clothing and stop the use of unsustainable materials.

"This is a critical step towards a circular fashion sector. The Circular Fashion Fast Forward project and the participating brands will demonstrate what can already be done today and inspire more industry players to follow."

Tagged Circular Economy, LWARB, textiles

# data[].attributes.attachment_link.title
Fashion brands exploring circular economy business models - Circular Online

# data[].attributes.attachment_link.description
The London Waste and Recycling Board (LWARB) and QSA Partners are working with fashion retailers, including Ted Baker, to develop a range of new circular economy business models. The retailers - including Ted Baker, Farfetch and FW - will be exploring more sustainable ways of operating through the Circular Fashion Fast Forward project.

# data[].attributes.body
"secondhand market will reach $51B in 5 years"

"millennials and Gen Z are driving the growth of secondhand"

# data[].attributes.attachment_link.readable_text
We were just days from publishing our 2020 Resale Report in March when the Covid crisis hit.

Like every business in the world, thredUP paused to focus on the safety of our teams and set a plan for the rest of 2020. At the time, it seemed that Covid had "changed everything." But is that really true as we look ahead? Here's what the latest data is telling us:

First, changes that were already afoot in retail are accelerating rapidly. Sheltering in place catalyzed the shift toward shopping online. As a result, opportunities are expanding for the strongest ecommerce and marketplace businesses.

Second, for all the challenges Covid posed to our assumptions about consumer behavior, one thing is clear: consumers everywhere are prioritizing value and accelerating the shift to thrift. When times get uncertain, we all focus on our family balance sheet. Brands whose core proposition delivers value and convenience have the opportunity to gain share. Amazon, off-price, and resale are emerging as winners.

Finally, the youth of the world are more switched on than ever about the health of the planet. With their words, deeds, and dollars, the younger generation is demonstrating a genuine desire to be part of the long-term solution to fashion waste. This should inspire much optimism in all of us. The consciousness of the next generation of consumers is a tailwind for businesses that deliver customer value in a sustainable way.

This year's Resale Report, unlike any we've published, captures insights from two different consumer worlds: pre- and post-Covid. We hope it sparks rich dialogue about the enduring shifts underway and the forces fueling the future of resale.

- Anthony S. Marino
President, thredUP

thredUP's Annual Resale Report contains research and data from GlobalData, a third-party retail analytics firm. GlobalData's assessment of the secondhand market is determined through consumer surveys, retailer tracking, official public data, data sharing, store observation, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Further, for the purpose of this report, GlobalData conducted a January 2020 survey of 3,500 American women over 18, asking specific questions about their behaviors and preferences for secondhand. thredUP's Resale Report also leverages data from the following sources: Green Story Inc. research and internal thredUP customer and brand performance data. View all sources here.

Covid Update: All market numbers were reforecasted in April 2020 to more accurately reflect the current situation, and are included throughout the report. GlobalData ran a post-Covid consumer survey in April 2020 to better understand how recent events have shifted consumer sentiment and behaviors. Those findings are included in the Covid section at the beginning of thredUP's Annual Resale Report.

Disclosure: All third-party brand names and logos appearing in this report are trademarks or registered trademarks of their respective holders. Any such appearance does not imply any affiliation with or endorsement of thredUP.

A quick reference to where the major players in the industry currently reside.

Secondhand: Consumption of all used apparel. Includes both the Resale sector and the Thrift & Donation sector.

Donation & Thrift: A sector of the broader 'secondhand' market that includes traditional options such as Goodwill, Salvation Army, and yard sales. These secondhand options are primarily, but not exclusively, offline.

Resale: A sector of the broader 'secondhand' market that includes more curated product assortments, often well merchandised and/or higher end. Examples include thredUP and TheRealReal as well as upscale offline players like Buffalo Exchange. These secondhand options are primarily, but not exclusively, online.

Secondhand Products: Consumption of all used apparel, footwear, accessories, books, furniture, entertainment, and beauty.

Department Stores: A type of general retail store, wherein the retailer displays products within distinct departments, often located on separate floors, specializing in defined product areas. Examples include Bloomingdale's, Macy's, JCPenney, Nordstrom.

Off-Price: A retailer that sells items at lower prices than those typically charged by retail businesses. Off-price stores typically purchase overstocked goods or make special purchases. Examples include TJ Maxx, Marshalls, Ross, Burlington Coat Factory.

Value Chains: Value stores are a retail format that sells inexpensive items, at a single or limited number of price points. Examples include Walmart, Target, Dollar Tree.

Mid-Priced Specialty: Specialist clothing retailers operating in the middle of the market in terms of price. Not value but not premium or luxury. They tend to be found in malls or traditional main street locations. Examples include Gap, Ann Taylor, J.Crew.

Fast Fashion: Specialist clothing retailers with a fast stock turnaround and whose business models rely on selling high volumes at (usually) inexpensive price points. Examples include Zara, H&M, Forever 21.

Direct-to-Consumer: Specialists and generalists selling clothing directly to the public. Primarily online only. Excludes C2C or auction type sites, and the online side of traditional retail businesses. Examples include Everlane, Warby Parker, Outdoor Voices.

Sustainable Fashion: Apparel that has been produced, sold, and distributed in such a way as to minimize, as much as possible, any damaging social and environmental impact. To be classified as sustainable, a company must reduce negative impacts at multiple stages of the supply chain and of the product's lifecycle. Examples include Reformation, Allbirds, Eileen Fisher, Patagonia.

Amazon: Amazon's clothing sales in the US, stated at gross merchandise value.

Subscription: Subscription-based services for clothing. Excludes non-clothing elements of subscription models, and rental services. Examples include StitchFix and Trunk Club.

Other: Sales of clothing from all other sources, including grocers and supermarkets, drug stores, duty-free, warehouse clubs, variety stores, other non-clothing specialists, and convenience stores.

This [Resale Report] contains forward-looking statements. thredUP has based these statements largely on its current expectations and assumptions, and on information available as of the date of this report. However, we operate in a competitive, new, and rapidly changing market. New risks may emerge. thredUP assumes no obligation to update any forward-looking statements after the date of this report, except as required by law.

This [Resale Report] also contains estimates and other statistical data made by independent parties and by thredUP relating to market size, growth and other industry data. This data involves a number of assumptions and limitations. thredUP has not independently verified the data generated by independent parties and cannot guarantee accuracy or completeness. Projections and assumptions about the future performance of the markets in which thredUP competes are subject to a high degree of uncertainty. These and other factors could cause results or outcomes to differ materially from those expressed.

1. GlobalData Market Sizing: GlobalData's assessment of the secondhand market is determined through ongoing retailer tracking, official public data, data sharing, store observation, consumers surveys, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Market data analysis included in this report was done in April, 2020 and includes the impact of Covid.

2. GlobalData Consumer Survey: The consumer data in this report is derived from a consumer survey of 3,500 women. The survey asked them a number of questions about their attitudes towards apparel, secondhand products, and resale products. The sample was designed to be representative of age and income and was also geographically representative. Surveying was undertaken by GlobalData between December 12, 2019 and January 6, 2020.

3. GlobalData Covid Survey: GlobalData performed a second consumer survey of 2,000 women in April, 2020 which specifically focused on changes in attitudes towards apparel, secondhand products, and resale products in light of impact of the global pandemic.

4. Second Measure Transaction Data: Second Measure tracks, analyzes, and benchmarks U.S. transaction trends through direct to consumer channels

5. GlobalData Fashion Retailer Survey: 50 U.S. fashion (apparel, accessories, footwear) retailers were surveyed from December 12, 2019 to January 6, 2020 about their Circular Fashion goals.

6. Green Story Inc. Environmental Study: Independent research firm, Green Story Inc., was contracted to calculate the environmental savings from reuse of secondhand garments sold by thredUP. The study compared the environmental burden of purchasing a brand-new garment with that of reusing an average garment sold by thredUP across all stages of the garment's lifecycle. The savings were calculated across three areas: greenhouse gas emissions, energy use, and water consumption. The study followed international ISO 14040 LCA standard.

7. Resale Value Rankings: thredUP evaluated 35,000+ unique brands on its platform and created an aggregate score to determine a brand's ranking based on demand, virality and value to the seller.

8. Internal thredUP Customer Behavior / Data.

10. GlobalData Seller Survey of 2,000 U.S. Women on clothing resale habits

Cowen Equity Research: Cowen's Best ESG Investment Ideas for 2020; March 3, 2020

Department of Health and Environmental Control: How Landfills Work

Deloitte: Advancing environmental, social, and governance investing: A holistic approach for investment management firms

The Forum for Sustainable and Responsible Investment (US SIF Foundation): Report on US Sustainable, Responsible and Impact Investing Trends 2018

# data[].attributes.attachment_link.title
2020 Fashion Resale Market and Trend Report

# data[].attributes.attachment_link.description
We were just days from publishing our 2020 Resale Report in March when the Covid crisis hit. Like every business in the world, thredUP paused to focus on the safety of our teams and set a plan for the rest of 2020. At the time, it seemed that Covid had "changed everything."

# data[].attributes.body
(thredup)

# data[].attributes.body
(thredup)

# data[].attributes.body
- Consumers more and more like to have one of a kind
- luxury vintage increase in value yr on yr
- luxury prices increasing, buying second hand is more affordable option

# data[].attributes.attachment_link.readable_text
Vintage clothing has gained a particularly high-profile proponent over recent months: none other than Kim Kardashian-West has been championing clothing from decades gone by, posting photos of herself in archival pieces from Versace, Thierry Mugler and Azzedine Alaia to her 140 million Instagram followers.

The ultimate trendsetter, wherever Kardashian-West goes, consumers follow. The vintage clothing market is already on the rise and is set to double in size to $51bn (£40bn) over the next five years, predict analyst GlobalData and US resale platform Thread Up.

More than 60% of women have bought or are willing to buy second-hand products, the report states, and 55 million women bought second-hand clothing in 2018 - up from 44 million the previous year.

Confluence of influences

Several trends are converging to give the vintage and second-hand clothing market a boost. Pre-loved items are well placed to meet consumer's new demand for more sustainable shopping options - Drapers' exclusive research found that three-quarters of Generation Z and millennial shoppers say that sustainability is important to them.

Shoppers like the 'one-of-a-kind' element, which makes it fun to shop sustainably

Scarlet Eden, vintage buyer, Beyond Retro

A new wave of resale platforms, at all ends of the market, are also making it easier than ever before for customers to purchase vintage or second-hand clothing.

Those looking for verified designer pieces from luxury heavyweights including Chanel and Gucci can browse resale giant Vestiaire Collective, home to more than 900,000 items. At the other end of the spectrum is social selling platform Depop, where the app's mostly millennial shoppers buy vintage and second-hand clothing ranging from 1990s Tommy Hilfiger to high street cast-offs.

Educated choice

The high street is also waking up to the opportunities in vintage. Shoppers can buy vintage clothing from retailers such as Urban Outfitters and via online giant Asos 's Marketplace.

"Customers are becoming a lot more educated about the things they buy, and that has led them to becoming more conscious about the clothing they choose," explains Scarlet Eden, vintage buyer at second-hand retailer Beyond Retro, which has five stores across the UK and three in Sweden.

Customers are starting to understand the impact fashion manufacturing is having on not only the planet, but on workers suffering from poor living conditions

Blanca Romero, digital marketing manager, Rokit

"Second hand and vintage is an easy option, as it is often affordable while also being on trend. Shoppers also like the 'one-of-a-kind' element, which makes it fun to shop sustainably."

Blanca Romero, digital marketing manager at fellow vintage retailer Rokit, which has four stores across London, agrees: "We've seen a big increase in interest for vintage. Customers are starting to understand the impact fashion manufacturing is having on not only the planet, but on workers suffering from poor living conditions in less developed countries. Shoppers are increasingly thinking about their clothing purchases for the long term and asking: how many times will I wear this?"

Luxury shopping platform Farfetch works with vintage boutiques around the world, including Japan's Amore and Italy's Angelo. Stephen Eggleston, Farfetch's vice-president, commercial, argues that most of the luxury fashion etailer's customers already take part in the secondary fashion market - either buying or selling - and as a result, are au fait with pre-loved fashion.

Consumers are being more and more comfortable with the online resale market

Stephen Eggleston, ice-president, commercial, Farfetch

"We've definitely seen increased interest in our pre-owned and vintage offering over the last few years," he tells Drapers. "Consumers are being more and more comfortable with the online resale market, driven by a number of factors, including an increased number of options, improved trust and verification processes, and an increasingly varied offer across the market."

Twentysomething plus

Although the definition of vintage is not set in stone, it usually refers to clothing more than 20 years old. However, a new interest in pre-worn clothing of all ages is blurring the category still further.

"The standard industry definition of vintage is usually anything over 20 years old, although we are starting to see a shift," Kate Seymour, founder of vintage retailer Something Elsie, which has two stores in Bristol. "As consumers become more open minded about re-wearing clothing, there's a move towards not being too hung up on the date of the garment."

Authenticity is the most important element for a successful vintage offer

Colin Saunders, chief executive, Open for Vintage

Farfetch, Eggleston adds, has recently modified its vintage category to include pre-loved fashion to allow customers to find must-have products from more recent seasons: "We've recently adapted our vintage category to be able to include pre-owned pieces from select brands.

"Our vintage offering is more traditional: the items have to be a minimum of 20 years old, be in pristine condition and have been sourced by vintage specialists. However, by extending the offering to include pre-owned items that would not be classed as vintage, we are able to showcase hard-to-access pieces from collaborations or key items from a designer's first or last collection."

Farfetch also launched its own pilot resale platform for luxury handbags, Farfetch Second Life, in May this year.

Real deals

Retailers seeking to gain a slice of the luxury vintage market must focus on authenticity, and creating a carefully curated selection that gives shoppers products they cannot find elsewhere.

"Authenticity is the most important element for a successful vintage offer," explains Colin Saunders, chief executive of Open for Vintage, an ecommerce platform for luxury vintage boutiques, which offers brands including Hermès, Dior, Prada and Celine. "We only sell through pre-approved vintage boutiques.

"Customers are also looking for the process of discovery - when they come to us, they want one-of-a-kind pieces [from] throughout the decades that are either discontinued or sold out."

Shoppers are still looking for trend-driven, good-quality clothing when it comes to vintage

Scarlet Eden, vintage buyer, Beyond Retro

Farfetch's Eggleston agrees: "Our customers are often on the lookout for very specialist pieces and are coming to us to get hold of those one-off items. We've had a great reaction from customers on some of the specialist archive collections we've curated with our boutique partners, including 500 pieces of original Versace and some of Rei Kawakubo's most iconic Comme des Garçons pieces."

Beyond Retro's Eden argues that although vintage shoppers are often seeking to create a unique look, the market is still influenced by wider trends: "Shoppers are still looking for trend-driven, good-quality clothing when it comes to vintage. They want to be current, but also want classic pieces that are going to last.

"Branded pieces are doing really well for us at the moment and shoppers are looking for quality brands that they can trust, such as Levi's, Nike or Carhartt. Plus, these brands give customers a chance to get the original version of the very on-trend 1990s look."

Cost conscious

Price is also key. Many shoppers are buying into vintage as a more sustainable but also more affordable way to buy into either trends or brands.

"We expect to see an increase in vintage shopping from those who see it as a financially savvy choice," Open for Vintage's Saunders adds. "More and more, we're seeing the value of luxury vintage goods go up each year, and as consumers become more aware and educated on the vintage market, this will undoubtedly become a selling point."

Something Elsie's Seymour adds that retailers need to create a comprehensive offer that can allay some of customers lingering concerns about vintage.

We're seeing the value of luxury vintage goods go up each year

Colin Saunders, chief executive, Open for Vintage

"I like to have a high-quality, broad range that appeals to different ages, is accessibly priced and comes in different sizes. Customers often still fear that vintage will smell or there won't be anything in their size or items will be faulty and they won't realise [until after they've paid for them]."

As Neil Saunders, managing director of GlobalData, argues, the vintage and second-hand clothing market is "uniquely placed" to meet consumers' demand for variety, value and sustainability. As the vogue for sustainability shows little signs of waning, interest in this market looks set to grow. Retailers looking to bolster their product proposition with a vintage offer need to create a compelling, competitively priced range that offers consumers unique product they cannot find elsewhere.

# data[].attributes.attachment_link.description
Vintage clothing has gained a particularly high-profile proponent over recent months: none other than Kim Kardashian-West has been championing clothing from decades gone by, posting photos of herself in archival pieces from Versace, Thierry Mugler and Azzedine Alaia to her 140 million Instagram followers. The ultimate trendsetter, wherever Kardashian-West goes, consumers follow.

# data[].attributes.headline
In what manner do these factors affect the emerging trends?

# data[].attributes.subject
In what manner do these factors affect the emerging trends?

# data[].attributes.body
- luxury resale
- Idea of community
- no refunds; have to re-sell ~ waste reduction.

# data[].attributes.attachment_link.readable_text
In the concrete jungle of Paris's 15th Arrondissement, hidden between monolithic office blocks and the French Ministry of Defence, the resale giant Vestiaire Collective is sowing the seeds of a fashion revolution.

Founded by a team of six in 2009, Vestiaire Collective is now the largest authenticated luxury resale platform in the world.

The site lists roughly 900,000 items at any given moment to 8 million members in 50 markets around the world. Behind the site, 340 staff work in offices in London, Paris and New York.

We want to connect and curate the world's most attractive and appealing wardrobes

Roughly 140,000 new members sign up per month, and while the company declines to reveal financial information, in May 2019 it saw 30% year on year growth on the number of products submitted to the site.

The business has seen phenomenal growth and to date has secured more than €116m (£99.5m) in funding - investors include Zadig & Voltaire, Condé Nast International, and finance houses Ventech, Balderton Capital, Idinvest, Eurazeo and Vitruvian.

Now, the business is moving into a new stage of growth. In January, Vestiaire Collective appointed Maximilian Bittner, founder of south-east Asian ecommerce juggernaut Lazada, as its new CEO.

Cool customer

When Drapers meets Bittner, the German native is sitting in Vestiaire's serene Paris headquarters wearing jeans, white trainers and a trendy Ami sweater, and is ready to take the business to the next level. His ambitions would see the business reshaping retail in a digital, community-driven and sustainable way.

"I wouldn't be doing something if I didn't really believe it could and will be an extremely big business," he shrugs with a coolly relaxed demeanour. "It will be somewhere we can fundamentally change the way we consume. That's a very exciting prospect."

The underlying premise of Vestiaire Collective is simple: sellers list unwanted luxury items on the site for anyone to buy. When a shopper purchases a product, it is sent to one of Vestiaire's authentication hubs for verification by in-house experts. This is part of what makes Vestiaire's offer unique - every single item sold is physically checked to guarantee authenticity to buyers.

Once completed, the item is repacked and sent to the customer. The seller is charged commission by Vestiaire, typically between 20% and 25% of the selling price, and the buyer is charged an authentication fee - up to 2% of the item's cost.

Bittner describes Vestiaire as a "treasure hunt" for customers: "We want to connect and curate the world's most attractive and appealing wardrobes," he explains. "If we can connect these closets in a way that is trusted and sustainable, then we can really fulfil the need of the time."

"People are looking for instant gratification, they look for that one thing that is right for them. They want to differentiate themselves and find ways to tell their stories."

Vestiaire in the vanguard

The business is in a strong position, at the vanguard of the thriving resale sector. Vestiaire estimates that the luxury resale market is growing 21 times faster than the general luxury sector. The general resale market is anticipated to be worth €35bn (£30bn) globally by 2021.

Sites such as US-based platform The RealReal, young fashion-focused Depop and sneaker site StockX have seen huge growth. In May, luxury fashion platform Farfetch launched its own resale pilot, eager to tap into the growing trend.

We're rewarding the seller who does good versus penalising those that don't

"Vestiaire Collective was one of the first sites to really offer a counterpoint to the notion that re-commerce was a secondary or even last resort option," notes Katie Baron, head of retail at trend intelligence company Stylus. "In many ways it reframed reselling as a key part of the luxury sector."

Before joining Vestiaire, Bittner founded the south-east Asian ecommerce site Lazada in 2012, developing the business into the leading ecommerce player in the market - operating in Indonesia, Malaysia, Thailand, the Philippines and Singapore.

In 2016, Chinese ecommerce giant Alibaba bought a controlling stake in the business in a deal reported to be worth more than $1bn (£790m) and a year later invested a further $1bn (£790m) to take its stake in the business to 83%.

Disruptive drive

With his experience building Lazada - a forward-looking, large-scale, mobile-first and logistically sophisticated tech business - Bittner brings operational and scaling expertise that, if he succeeds in his ambitious goals, could well drive Vestiaire to new and impressive heights.

He is staunch in his belief that fashion, retail and luxury are crying out for disruption, and sees his role at Vestiaire as to encourage and drive these changes.

He aims to build on the existing foundations of the business with his own expertise - and ecommerce best practice is an early focus.

You have this incredible emotional connection between the consumers, the sellers and the products

"The brand and its fashion DNA are extremely strong," he says. "What I bring to the table with the experience that I had building Lazada - is the importance of ecommerce best practice.

"People have a certain expectation level for ecommerce now, educated by the likes of Amazon. Potentially, in the past Vestiaire did not keep up with some of those basic expectations."

The founder of another, smaller-scale, resale business agrees that Vestiaire has work to do if it wants to match high customer expectations: "Despite positioning itself as a luxury retailer, there are elements of the site that do not give a luxury experience. The quality of the photography can be quite poor, navigation is challenging and delivery is slow. Net-a-Porter offers 30-minute delivery in London, and as a large luxury retailer Vestiaire should be competing with that."

Bittner has identified user experience (UX), customer experience (CX), search filters, search functions, pricing, logistics and presentation as key areas for improvement.

However, with so much of the end user's ecommerce experience dependent on the sellers - who take product imagery, describe products and ship items themselves - upgrading the experience is not a simple task. To achieve this Bittner is seeking to "gamify" the ecommerce experience and engage more with sellers - rewarding sellers for good ecommerce practice.

"We need to make the seller understand that providing good customer experience is not just good for us but also good for them," he says. "Rewarding the seller who does good versus penalising those that don't. We need to find a way to get you to think: 'now is a good time to sell'."

Community spirit

Engagement is another essential component in Bittner's plans for Vestiaire to drive the site's sense of community.

"What makes Vestiaire so unique is that you have this incredible emotional connection between the consumers, the sellers and the products," he says. "We need to empower this through tech."

He flags chat functions, newsfeeds and seller information sound bites - "wouldn't you like to know what the resale price of the bag you just bought will be in six months' time?" - as tools that encourage this, alongside the enhancement of website basics.

"Gamification is everything which makes the ecommerce shopping experience more than just search, add to cart and checkout as easily as possible," he says. "It brings together that shopping mall culture that my generation grew up with and translates that online."

Waste reduction

A tangent to Bittner's pursuit of an empowered, engaged community is his mission to integrate the idea of resale into the wider fashion ecosystem. Sustainability is a key motivator for this - in particular, the drive for a more circular industry.

"Increasing the use of clothing is one of the most effective ways to reduce waste and pollution in the fashion industry. This means resale has an important role in making fashion circular," explains Francois Souchet, Make Fashion Circular lead at the Ellen MacArthur Foundation. "Raising awareness is not enough. For customers to adopt circular habits at scale, you have to make it convenient and rewarding."

"Circularity is not something that we drive by ourselves," notes Bittner. "We drive through the education of the consumers on the sellers and buyers' side, but also through the education of brands and retailers."

"There is a real need to do something, and there is a very real thing people can through our business. We see ourselves as a front runner and pioneer in how consumers can drive the way we can save the planet. Resale is not only a good thing to do, it's the smart thing to do. Not only are you spending smartly but you're also saving the planet by buying quality stuff over mass market stuff."

This desire perhaps explains Bittner's surprising approach to competitors. He refers to sites such as Depop, The RealReal and Vinted as "brothers in arms" rather than adversaries, driving for the same industry changes. However, he notes there are still relatively few credible competitors in the luxury space.

"We're seeing more new style models, more categorisation: different models appealing to different customer needs," he says. "The increased competition is educating the consumers that buying second hand is not only a smart thing to do, but is also the right thing to do from a sustainability perspective."

Despite its sustainable model, Bittner is frank that other aspects of the business need to be improved. "There is a lot of homework we still need to do around sustainability," he says. "I would not say we're best in class in day-to-day operations."

There is never an end state when it comes to sustainability

The company effectively ships all products twice - once to an authentication hub and again to the customer - as such, shipping optimisation is one priority. The company transports items via air freight, and Bittner highlights package size and shape optimisation as one possible development.

"The company has done a lot of good things, but there are more good things that we could be doing," he says. "There is never an end state when it comes to sustainability."

Bittner may jovially refer to resale "brothers", but he has already made dramatic changes to the business, geared to keep Vestiaire ahead of the pack.

In April, he overhauled the existing commission structure for sellers. Rates were reduced for sellers, and a cap of £1,300 was introduced on items over £6,500. In addition, a small "authentication fee" of up to 2% of an item's listed price was introduced for buyers. The main motivation behind this was to make the service more "competitive" in its offer by lessening the cost to the seller.

"Our goal is to make the transactions on our platform as attractive as possible for buyers and sellers," says Bittner. "We shouldn't get too greedy as a platform. We should encourage the sales."

Tech take

In the business itself, he is determined to uphold an innovative and entrepreneurial tech-focused mindset to support growth.

"We need to continuously challenge everything we do and continue innovating," he says. "Vestiaire was built around an innovation. We need to continue keeping that spirit."

"The reason I'm in this business, and all my colleagues are all in this business is because we want to change things. Change requires being innovative because the world is changing at a million miles an hour."

Change requires being innovative because the world is changing at a million miles an hou

He highlights the implementation of new technologies, and the scaling of tech as one aspect that gathers importance as a business grows, and Vestiaire is in the early stages of implementing both AI into its systems and working with blockchain technology.

"Our job as a platform is to build the relevant knowledge to figure out what the right solutions are, the most scalable solutions are and the most transferable solutions are," he says.

While he is reluctant to reveal details, blockchain has been widely cited as a potential game changer for authentication - allowing products to be traced back to their origin through sophisticated data networks. For Vestiaire, this would take its already impressive authentication guarantee to the next level.

"During the next six months someone could come and eat us for breakfast," he says. "It's a constant fight for survival and to stay relevant. If we're not moving and not innovating, then we'll be yesterday's news very fast."

There is no doubt that Vestiaire Collective is an interesting and innovative business and Bittner is shaping it for a digitally driven, sustainably focused future. In a turbulent and rapidly shifting industry, his lack of complacency and acknowledgement of the business's flaws is refreshing, and he exudes a pragmatic sense of focus on the task that lies ahead - scaling Vestiaire for the fashion landscape of the future ahead.

# data[].attributes.attachment_link.title
Vestiaire Collective: a sustainable formula for luxury resale

# data[].attributes.attachment_link.description
In the concrete jungle of Paris's 15th Arrondissement, hidden between monolithic office blocks and the French Ministry of Defence, the resale giant Vestiaire Collective is sowing the seeds of a fashion revolution. Founded by a team of six in 2009, Vestiaire Collective is now the largest authenticated luxury resale platform in the world.

# data[].attributes.body
resale platform
young generation
social network like

# data[].attributes.body
- premium/luxury
- local community of buyers/sellers
- loyal customers
- works on a seasonal basis (AW/SS) ~ gives customers a normal retail experience.

# data[].attributes.attachment_link.readable_text
Instant payment

We give you credit as soon as your bag has been
verified so you can fund your next purchase faster

Get something new

Use your credit to buy new things on Farfetch

No fees

The price we give you is the value of the credit you will get.
No hidden fees.

Do good

By selling your bag, you're doing your bit to extend
its life and help the environment

# data[].attributes.attachment_link.description
Instant payment We give you credit as soon as your bag has been verified so you can fund your next purchase faster Get something new Use your credit to buy new things on Farfetch No fees The price we give you is the value of the credit you will get.

# data[].attributes.body
- Areas of uk ~ unused clothes

# data[].attributes.attachment_link.readable_text
The main reasons given for keeping unwanted garments were "I don't like to throw things away" (34.7%) and "I can't be bothered to sort through them" (26.8%).

Almost a third (30.8%) of shoppers have never sold their unused clothing, the Fashion Retail Academy reported.

The data also shows Yorkshire and Humber was ranked the least thrifty place, where just over a third (37.7%) of people saying they buy and sell used clothes. Wales, however, came out on top with nearly half of the population (47.%) confirming they buy and sell old clothing.

Lee Lucas, principle at the Fashion Retail Academy, said: "With households still feeling the squeeze, it is surprising to see that so few Brits aren't being more thrifty with their unwanted clothes.

"However, our busy lifestyles mean we often don't have the time and energy to load up our cars with old belongings and cart them off to car boot sales. But there is an endless list of resale apps, websites and Facebook pages with thousands upon thousands of potential buyers waiting to snag a bargain.

"Although our research shows fewer people are buying and selling used clothes, we previously found that more consumers are opting for longer-lasting items. It could be that as consumers pay more for better-quality garments - which are increasingly viewed as investments in their own right - the incentive to sell them on later is diminished."

# data[].attributes.attachment_link.title
UK shoppers hoard £4.1bn of unused clothing

# data[].attributes.attachment_link.description
The main reasons given for keeping unwanted garments were "I don't like to throw things away" (34.7%) and "I can't be bothered to sort through them" (26.8%). Almost a third (30.8%) of shoppers have never sold their unused clothing, the Fashion Retail Academy reported.

# data[].attributes.body
which attitude - buy better buy less or doesnt care
by continent
willingness for secondhand

# data[].attributes.body
- benefits and cons

# data[].attributes.attachment_link.readable_text
There are two truths inherent in the fashion industry in 2019 that seem contradictory: we buy too much, and too much doesn't sell. An estimated £30bn worth of unworn clothing hangs in UK wardrobes, according to the resource efficiency body Wrap. On the other hand, one of the biggest news stories of last year revealed that Burberry had burnt more than $34.6m worth of unsold product in the year ending June 2018 - a revelation that shamed the company into ending the practice.

Along with a rise in niche designers working with recycled textiles, consumers are turning to the resale market for something cheaper and greener. And in a world of overproduction, retailers are working out how to spin gold from existing resources. Farfetch is the latest company to enter the resale market, currently piloting its Second Life resale business, inviting customers to sell their designer handbags. Crucially, the model works on a credit rather than cash basis - customers have to spend what they make at Farfetch. And Farfetch is doing its best to differentiate its service from consignment sales of dead stock.

"We are allowing resale from 27 brands of handbag [including Hermès, Alexander McQueen and Louis Vuitton] and have seen items submitted across them all," says Thomas Berry, director of sustainability at the online retailer. "We have long offered customers the opportunity to further take part in the secondary market by purchasing these kind of items from us, however we have previously never given them an opportunity to sell products back to us."

With storm clouds continuing to gather over bricks-and-mortar retail, the resale market is a rare sunbeam for the fashion business as a whole. It has grown 21 times faster in the US than other fashion retail over the past three years according to GlobalData, which also predicts that the resale market, worth $24bn, will mature to $51bn by 2023. And that makes sense - why buy knock-off luxury when close to pristine second-hand originals don't cost a vast amount more?

One of the biggest television advertising campaigns in the US this season is from The RealReal, the consignment site that promises up to 90 per cent off luxury brands. It stars models Daniela Kocianova and Maggie Maurer, who dance around on screen in their preloved wares. Since it was founded in 2011 by entrepreneur Julie Wainwright, The RealReal has become a phenomenon, boasting 8m members and 1,500 employees. To date, $988m has been paid out to customers selling through the site and in June the company began trading on the Nasdaq stock market - raising $300m in its initial public offering.

The RealReal offers a bargain in a credible, well-styled and glossy context. It is also plugging into a larger eco debate in fashion right now. The over-production of fashion is adding to landfill at an alarming rate.

Along with resale, the rental market appears to be taking off in a big way too. Shika Bondani founded Front Row in July 2016 in the wake of the success of Rent the Runway (the New York-based business that was valued at $1bn after its most recent fundraising round in March). UK-based, it offers customers in London the opportunity to hire clothing and accessories; a green tweed Chanel suit can be yours for £600 - but for just five days. "When we launched, there was a stigma associated to the concept of renting," says Bodani. "However, we have seen a huge rise in demand over the years, with a 214 per cent increase in rental revenue growth in Q3-Q4 last year. People are embracing the rent-versus-own mentality to gain access to items they covet but could not afford."

Yet, there are other areas of the resale market where the idea of affordability is an irrelevance. Scroll through the 1stdibs website and you can find fantastical pricing on vintage fashion - $4,125 for a 1980s knitted Bodymap dress, the kind of thing that has gone under the hammer for £500 at Kerry Taylor's fashion auctions in London.

People are embracing the rent-versus-own mentality to gain access to items they covet but could not afford

Shika Bondani, founder of Front Row

"As the secondary market for fashion has grown overall, 1stdibs has maintained our position at the very high end," says the company's chief commercial officer Cristina Miller. "We have seen demand for high price points, such as $50k-plus Birkin bags and original runway pieces, increase in the past three years as people become more comfortable buying higher-value pieces online."

Vestiaire Collective was founded 10 years ago with a similar stance on resale and a business model forged on consumer behaviour being in flux. "The arrival of Instagram, Uberisation, the end of ownership and the increased importance of sustainability have driven a fundamental shift in the consumption habits of Gen Zs and millennials," says chief executive Max Bittner. "It's generating a perfect storm for the resale market to boom. We know that most people will wear an item fewer than 10 times before selling it on."

Whatever the draw of Vestiaire Collective, it isn't about getting 90 per cent off the recommended retail price: "Following the re-release of the Saddle bag, Dior product is up 160 per cent," says Bittner. "Off-White is up 825 per cent and Celine's Alphabet necklace is reselling for up to four times its original price."

But whether pieces are being resold at a premium due to scarcity, or at a fraction of their original cost because they are excess stock or unwanted, the relationship between luxury brands and online consignment is still problematic.

"The biggest existential threat to luxury brands today is the second-hand market," says Cameron Silver, founder of LA-based Decades, arguably the most famous and exclusive consignment store in the world. "If brands are not able to protect their value and perception in the resale world it is extremely detrimental to their ability to sell at traditional full-price venues. Decades has always honoured the integrity and celebrated the virtue of a luxury brand in the resale world which ultimately enhances the brand at full price."

Recommended

There is a big difference between what The RealReal and Decades do. The former is essentially a thrift store with attitude and a big marketing budget, while recent acquisitions at Decades include an Yves Saint Laurent for Christian Dior alligator and mink motorcycle jacket from 1960 that ended up in a museum collection. The RealReal et al make money through volume of sales. And as their share of the overall retail market grows, one wonders how it will eventually impact luxury fashion as a whole. It is an interesting aside to note that Vivenne Westwood's current spring/summer collection was launched with a personal appeal by the designer to "buy less, dress up". But, like every designer, Westwood would probably rather you paid full price.
Follow @financialtimesfashion on Instagram to find out about our latest stories first. Listen and subscribe to Everything Else, the FT culture podcast, at ft.com/everything-else or on Apple Podcasts

# data[].attributes.attachment_link.title
The rise and rise of the designer resale market

# data[].attributes.attachment_link.description
There are two truths inherent in the fashion industry in 2019 that seem contradictory: we buy too much, and too much doesn't sell. An estimated £30bn worth of unworn clothing hangs in UK wardrobes, according to the resource efficiency body Wrap.

# data[].attributes.body
- thrift shops

# data[].attributes.attachment_link.title
People Have Been Reusing Clothes Forever But Thrift Shops Are Relatively New. Here's Why

# data[].attributes.attachment_link.description
A history of thrift stores in America, and how Salvation Army and Goodwill changed the perception of buying used clothes.

# data[].attributes.body
vestiare pop up in selfridges

# data[].attributes.attachment_link.readable_text
As CEO of Yerdle, Andy Ruben believes that providing companies with a platform for buying and selling used goods accomplishes several things at once. A resale platform, he says, allows brands to deepen customer engagement and increase profit while helping the environment by repurposing clothing and other items.

Ruben served as Walmart's first chief sustainability officer and led the retailer's e-commerce strategy and private-brand and omnichannel initiatives before cofounding Yerdle in 2012. He spoke with McKinsey's Simon London about what strategies companies should be pursuing to get into the resale space, and why circular-business models are good for brands and consumers alike.

McKinsey: Tell us what Yerdle's model is and how it works.

Andy Ruben: We provide brands like Patagonia, REI, and Eileen Fisher with platforms for buying and selling used goods.

In terms of our model, it's been obvious to me for some time that while retailers focus on selling new items, increasingly, as customers, we're very happy finding that used item that's still in great condition instead of buying a new one from a store. As retailers evolve, they will serve customers that way as well.

When we started Yerdle, we worked on a marketplace where people could exchange used items. And what we learned was that the friction in doing so was just too high-posting something, finding the item, trusting the seller of the item.

All along, we were working with brands that would say, "I love this concept, but I don't want my nice jacket next to a pair of old sneakers. I want a model that is focused on the quality of the brand."

We pivoted the business roughly two-and-a-half years ago to focus on powering brands so that alongside the items they have always made and sold, they can buy back items that customers no longer need, and then resell them.

When you're on Patagonia.com and you click on Worn Wear, their used brand, you're on the brand website that is powered by Yerdle. The brand was looking to move aggressively into the pre-owned space but didn't have the capacity to take on the work. We came alongside and integrated with them under their brand, but we do all the logistics, the technology, and the program management.

McKinsey: What are the business opportunities created by the disruption of the retail model toward used or rented goods?

Andy Ruben: Let me preface this by emphasizing the amount of disruption occurring with this model. The best estimate over the next three years is $50 billion out of existing brand and retail sales in the US if there was a one-to-one trade-off between people buying used or renting versus traditional ways of buying new items from brands and retailers.

It is a massive market shift whether or not brands and retailers take part. And when a brand is dealing with a disruption that is inherently a shift in how customers buy and what they buy, the choice of sitting this out is to walk away from the customer. I don't know why a brand would do that.

The same concern applies to cannibalization. Brands wonder, if I promote the pre-owned business, am I going to cannibalize my new sales? My first comment to a brand would be, "Whether or not you are in this market, the customer is buying used items anyway."

This is a great way to create relationships with customers, and I believe that is what every brand is either after or should be after in a day and age when switching costs are so low. The relationship looks a lot like certified pre-owned, in which companies buy back items, typically with gift cards, from customers who haven't worn the brand's jacket in two years.

By offering a gift card to bring that jacket back, you are reengaging that customer and you're building loyalty. When that jacket then gets sold to a new customer who aspires to the brand, we typically see a marketing return twice as good as a brand benchmark, because you've got an item to work with right now that appeals to a group of people who aspire to the brand. This is a smart strategy to increase customer loyalty.

McKinsey: There's obviously a shift taking place, especially among younger consumers. What's happening from your point of view?

Andy Ruben: The reuse mentality jibes with values surrounding sustainability, especially for younger customers. The best data out there shows that 33 percent of Gen Zs and millennials did some type of resale purchase or rental in the past 12 months.

Refashioning clothing's environmental impact

Participation in that market is growing 40 percent year over year. So we are quickly approaching the halfway point. And it stems from everything else that we see in the economy. It's a subscription for music, where you are licensing the right to the music. It's a subscription for other services, for applications. It's ridesharing, right? It's your phone, not your car keys, that gets you the transportation you need.

And so those shifts in how we interact, especially Gen Z and millennials, apply to product as well. And there would be no reason I could think of that brands and retailers today wouldn't be thinking about the implications of that more macro shift.

Here's an example from my own life: I've got two kids at home, a 12- and 14-year-old, and they grow out of jackets every year.

But now I can buy them a pre-owned jacket for $60, not $140. They wear the jacket for a year. When I'm done, I take that jacket right back into Patagonia, which hands me a gift card. Now the cost of a jacket for the year is $20, $25. And every year, I buy my kids the next jacket and just bring it back to the store. And what's been striking to me is how quickly I can't imagine buying them new jackets, because this model just makes so much more sense.

And as more of us start to partake in this type of service, the change happens quickly. Much like transportation or hotels and Airbnbs, it's because it makes so much sense for us as customers. We get more value, higher-quality things with less wait, more freedom.

McKinsey: Reuse is just one of the ways companies can participate in the circular economy. Recycling and repair are others. Have you looked at these practices? Why have you focused on reuse?

Andy Ruben: There are a lot of ways to do circular. The greatest opportunity I see in idle capacity-and that's idle capacity for economic value, for sustainability value across the board-is our closets.

And the vast majority of cases, items are sitting in our closets not because they need repair. They're sitting there because we bought them two years ago and we outgrew them. We got bored. We want something new. We forgot we even have them. And so the question becomes, how do we create business models to get those items out of closets and back in use creating value again for the brands and retailers?

Any brand that's going to do that, it's important that companies stand behind their items. I think repair is a prerequisite. Most brands we work with have items of a quality level that can be repaired. We can do that, or someone else can do that. But it is important.

McKinsey: What are the resale trend's implications for sustainability and the environment?

Andy Ruben: Brands talk about how they can feel really good about sustainability reports, where they reduce the waste on how they cut a blazer, right? And they have less waste in the pattern making. And that's simply 1 percent less bad for an item, but companies still produce 100 billion items a year for seven billion humans.

There is no sustainability model that does not involve a more circular model of keeping things in play. The same holds from a supply-chain perspective.

McKinsey: Companies are paying more attention to the circular economy, believing they have the responsibility to lower the carbon imprint of their clothes. Can you describe how brands are thinking about these economic principles for the future?

Andy Ruben: There is a tension right now for fashion companies in serving customers who want to wear items fewer times but also want to shop with brands that align with their values on ethical leadership and sustainability.

Brands have this conundrum of how to do both things. And there are very few ways through that. One of the benefits we've seen in a more circular model is that by allowing customers to buy an item initially and then know that after they wear it three, four, five, six times, they can bring it back-this is just part of the way the brand works.

Stay current on your favorite topics

And then that item gets sold to a different customer, who gets to wear it four, five, six times and brings it back. That's not just having a sustainability report, focusing on your supply chain, looking at metrics-it's innovation in terms of the business model. Taking actions that are more customer centric, like these circular reuse models, pay incredible dividends for companies in terms of true sustainability and ethical leadership. That's an important way to be aligned with today's customers and their values.

About the author(s)

Andy Ruben is the CEO of Yerdle. This interview was conducted by Simon London, a member of McKinsey Publishing, who is based in McKinsey's Silicon Valley office.

# data[].attributes.attachment_link.title
When you pick that pre-worn jacket, the environment wins too

# data[].attributes.attachment_link.description
As CEO of Yerdle, Andy Ruben believes that providing companies with a platform for buying and selling used goods accomplishes several things at once. A resale platform, he says, allows brands to deepen customer engagement and increase profit while helping the environment by repurposing clothing and other items. Ruben served as Walmart's first chief sustainability officer and led the retailer's e-commerce strategy and private-brand and omnichannel initiatives before cofounding Yerdle in 2012.

# data[].attributes.body
Vestiare in Selfridges

# data[].attributes.attachment_link.readable_text
With 8 million members across 50 markets, resale is a booming sector. Chappaz said the luxury resale market is growing 21 times faster than the general luxury sector - and is anticipated to be worth €35bn (£30bn) by 2021.

"Resale has a huge opportunity in front of us that we only see as growing," Chappaz says. "Others are starting to become aware about it. The market is becoming a normal part of what the fashion consumer can do."

Chappaz noted that there are five key drivers behind the resale boom.

1. The professionalisation of the resale offer

Although 75% of second-hand sales still happen offline, online is growing faster than any other channel.

"It offers a much less fragmented experience to buyers," says Chappaz. "On Vestiaire Collective you have access to 900,000 pieces in one go. There is broader product availability even on sold-out items."

She said a more fluid customer experience enhances the proposition online, so that 45% of Vestiaire Collective's customers prefer shopping online for second hand.

2. Changing consumer preferences

Chappaz noted that social media has fuelled a demand for individuality in dressing: "There is a rise in desire for unique looks and products. More and more today, customers want to create their own styles - ones that only they could find."

She notes that consumers are also more interested in sustainability: 58% of buyers consider sustainability in their purchases.

Alongside this, Chappaz notes that we are seeing the end of the "traditional" ownership model: "Consumers are less and less fond of owning things. They want to invest in experiences. Consumers are also more conscious that they can finance new purchases from the money they earn by selling."

3. Value for money

Chappaz noted that 71% of pre-owned buyers look towards items they could not afford new: "On average on Vestiaire Collective, you can save up to 70% on items, and this gives people access to brands they would not be able to buy in the store. We have seen that 62% of buyers have bought a brand for the first time second hand. It is a good 'recruiting channel' for retailers."

4. The rise of social media

"There has never been such a high rate of new products, collections and drops," said Chappaz. "People don't want to wear the same product twice. They want to wear it once on Instagram and then resell through a platform like Vestiaire Collective."

5. Community

"When we talk to our customers, what they like the most is that Vestiaire Collective is not like another shop - they can talk to the sellers," said Chappaz. "This interaction goes way beyond the purchases. Fashion experts and lovers will comment on products with information. They really care about the products and want to share their passion. Buyer and seller interaction is at the core of what we do."

Vestiaire Collective reveals why resale is booming

# data[].attributes.attachment_link.title
Vestiaire Collective reveals why resale is booming

# data[].attributes.attachment_link.description
With 8 million members across 50 markets, resale is a booming sector. Chappaz said the luxury resale market is growing 21 times faster than the general luxury sector - and is anticipated to be worth €35bn (£30bn) by 2021. "Resale has a huge opportunity in front of us that we only see as growing," Chappaz says.

# data[].attributes.attachment_link.readable_text
In a retail landscape trying to cater to millennials and Gen Z, experiential retail has become both buzz word and synonym for "good retail," and some sectors are better poised to adapt to that trend than others.

Beauty retail, for example, has been held up as a prime case study of experiential retail , with specialty stores like and pioneering the movement toward services, fresh store concepts and play-based retail. Their success is pushing the rest of the category to shift. Not only have drugstores like and adjusted their beauty strategy to meet the same high standards, but department store stalwarts like and Saks Fifth Avenue have also been incentivized to adapt.

But, like an infectious pop song (or an infectious disease, depending on the retailer), experiential retail has spread far beyond just the beauty department. It's surfaced in all manner of ways , from Casper's pay-to-nap concept to efforts by Nike and Adidas to make trying on sports gear a more active and involved process .

Sports and outdoor retail is another sector that could be primed for an experiential takeover, especially if more big-ticket players start buying into the model. With Nike's recent launch of the Nike Live concept - an experiential, members-only store format with a localized product assortment set to inform the brand's flagship store launching in the fall - and similar concepts set for other markets, that push is becoming more of a reality.

"The sky is the limit, especially with technology," Michael Solomon, a professor of marketing at St. Joseph's University, told Retail Dive in an interview. "You could use augmented reality to make it seem like you're playing in front of a full house at Madison Square Gardens. There's a lot of things you could do to create these very immersive environments."

ooking at Nike and REI, there are also a lot of different ways to do it.

Driving experience through data

The retailer's Nike Live concept in Los Angeles combines an in-store, physical experience, with an approach that runs on data and draws on mobile to make the shopping experience more convenient and streamlined. The smartphone-heavy approach provides much of the data that informs choices about inventory, assortment and other in-store decisions.

From a convenience perspective, the company is pushing its mobile app as a catch-all of services for everything from reserving products to loyalty points and product information. Those functions in and of themselves aren't particularly innovative, but Nike is encouraging its customers to use the app at home and in stores. Being able to collect that level of data and insight from loyal consumers could also be incredibly helpful in making sure Nike hits the mark on product selection, as long as Nike puts it to use, according to Scott Webb, president of Avionos.

"If you are a brand that can command that level of interaction, this is where you wade through the challenges so many other brands have," Webb said in an interview with Retail Dive, "which is: 'We have all this data, but no insights. We have all this information, but no better understanding.' So [it's] being able to bridge that and really create meaningful, relevant experiences based off of what I know about you as a consumer."

Webb noted that when consumers willingly give up data they expect more in return, meaning Nike's new concept could face high expectations if it allows only data-giving members into the hallowed grounds of its newest concept.

That intentional exclusivity could also work in its favor, though. Loyal customers spend more with a given brand, and in that way, targeting areas with a high concentration of loyalty members gives Nike a way to speak to its most loyal fans while also demonstrating the benefits associated with a Nike Plus membership for any customers teetering on the edge. Although i t does present challenges when it comes to replicating the concept.

In order for customers to see the appeal of this approach, the localized assortment Nike is pitching has to be spot on, according to Barbara Kahn, a professor of marketing at the Wharton School of Business at the University of Pennsylvania. The assortment is set to rotate every two weeks.

"The problems are gonna be forecasting demand and making sure you can do it in an efficient way," Kahn told Retail Dive in an interview, noting that the store's designation as a localized, exclusive concept in some ways raises the bar higher than at, for example, department stores. "They have to be way better at forecasting what's going to sell and what's not going to sell and that kind of stuff than they were because you can't put that stuff on sale to clear it out. That'll kill the whole concept."

Experiential retail as strategy

It's a bold marketing strategy to exclude shoppers, but all indications point to Nike Live being more than just a one-off flashy store to draw in shoppers. Cathy Sparks, VP and GM of Global Nike Direct Stores, told Retail Dive in July that the plan was to scale the model if it was successful, and to expand some of its services and features to the company's U.S. store fleet.

Nike has already had success with limited offerings with sneaker drops on social platforms, and Adidas recently had its own sneaker drop success story through an integration with Snapchat, but this move appears to take that ethos and apply it to an entire brick-and-mortar location. Nike by Melrose in Los Angeles will feature some products exclusive to that store, ostensibly to keep shoppers coming back, but also to give non-loyalty members a reason to buy into the club.

It has the potential for serious upside if Nike hits the right points - and as Webb notes, they've been pretty good at hitting the right points in the past.

"All other brands really strive to be as effective as Nike ... Michael Jordan stopped playing basketball 20 years ago and when the new Air Jordans come out you still have lines around the block," Webb said.

Webb also noted that with the local focus of the Nike Live concept, it likely wouldn't bring in tourists like other flagship stores - which could give any future iterations of the format the flexibility to be even more localized with assortment, whether its through celebrated athletes from the area or an emphasis on local preferences for sport and exercise types.

"The real innovation is not just generally having market-specific assortments but really using the data to drive that and then having the fulfillment capability to keep it fresh," Webb said. "Not just to do seasonal assortments, but to do bi-weekly assortments and to keep that on track and on par - that's really compelling."

Breaking the four walls

REI's approach to in-store experience - aside from having trial areas for customers to test out hiking boots and other gear - has been to abandon the store altogether. After all, why use a store to show customers how well your products work when you have the whole outdoors?

One way of creating that association is, arguably, through the event itself. For example, a customer goes on a camping trip with REI, is guided through several hikes and learns new skills along the way - later in the year, when that same customer decides they need a new pair of hiking boots, they're more likely to think of the retailer.

Even if customers aren't purchasing products as a direct result of their last REI trip, the planning that goes into vacations should put the brand top of mind for customers, according to Cort Jacoby, a partner in the consumer and retail practice of A.T. Kearney, a global strategy and management consulting firm.

"It's a way of really enhancing the brand I think in the consumer's mind," Jacoby told Retail Dive in an interview. "And think of how many times you may be thinking about a company like REI as you're thinking about that trip. The mindshare and the brand equity, I think, is exploding when you go through and enhance and bring these experiences to the consumer's mind."

REI co-op members seem to be the target audience for these excursions, and they receive discounts on Adventures, which vary depending on the trip. Importantly, the whole proposition remains heavily in-line with REI's brand, drawing from similar marketing campaigns like the #OptOutside Black Friday movement , which has expanded every year.

"You've got the same customer who's buying the backpack is also an adventure traveler, so why not get into the travel business? Or partner with someone who does it?" Solomon said, noting that REI's most loyal customers are the obvious starting point, whether or not REI uses the trips to lure in new shoppers in the future.

Most retailers are probably far from adding a travel component to their business - and not all of them should. What works for REI won't work for Nike, nor will it work perfectly for other retailers. Still, it is worth thinking outside the box. Last year, REI drew in 375,000 people through its Outdoor Programs and it currently features over 175 itineraries for REI Adventures.

Whether or not international travel is on the list, other retailers would do well to consider opportunities of their own for getting outside the store, according to Jacoby. "The inside of the store is a great thing, but let's face it: the traffic continues to decline. That's just a major trend that continues to happen," he said. "I think it's great for companies to be able to expand that presence within the store with experiences and activities, but I don't think that's sufficient at this point."

In addition to being an interesting take on experience, Solomon said there is much to gain from retailers selling products that pertain to a particular role - in REI's case the adventurer - rather than sticking to one vertical. For REI, that means selling hiking boots, backpacks and camping trips where those products are used. Solomon sees possibilities for a similar approach at most retailers.

In order for that to be successful, though, store associates must be well-trained and knowledgeable - more in line with REI or Nordstrom's approach to service than the sometimes lackluster training given to store associates.

"You've got this paradox where millions of dollars are being invested and they're all resting on the shoulders of the least-paid person in the organization," Solomon said, adding that for big projects like REI Adventures, where loyal customers are the target, retailers can't afford to disappoint them.

That doesn't mean an entrance into experiential retail of any type should be taken lightly - it's often a serious investment, no matter the approach, and retailers should be cognizant of not copying successful retailers just to feel like they're playing the game, Solomon noted.

"The lesson is: You have to walk before you can run," Solomon said, "but good god, get off your butt and start walking at least, because if you just view your store as a place to hang merchandise you're going to be out of business in three years."

# data[].attributes.attachment_link.title
How Nike and REI made experiential retail a strategy

# data[].attributes.attachment_link.description
In a retail landscape trying to cater to millennials and Gen Z, experiential retail has become both buzz word and synonym for "good retail," and some sectors are better poised to adapt to that trend than others.

# data[].attributes.body
mintel report
- nostalgic experiences
- holistic approach
- education.

# data[].attributes.body
Tech X experiential

# data[].attributes.body
2025 mintel report
- Digital companies start to dominate brick and mortar store space

# data[].attributes.body
2030 mintel report
- new models of education increasingly popular
- turning off from online is popular

# data[].attributes.headline
Retail trends ~ experiential retail and sustainability 

# data[].attributes.subject
Retail trends ~ experiential retail and sustainability 

# data[].attributes.body
- a lot of in store experiences are combining these trends

# data[].attributes.attachment_link.readable_text
Last year was a challenging, if not strenuous time for the UK retail industry.

In fact, according to two separate reports from the Retail Sales Monitor and the Retail Think Tank, 2019 was the worst year on record when it came to the overall health of Britain's retail sector.

Not only did it present some of the toughest trading conditions in modern history - resulting in over 140,000 job losses - the catastrophe may continue into 2020. 8000 stores closed in 2019, with retail experts predicting this to continue at the same pace.

Despite this, there is still a glimmer of hope that things will improve - even if it's not overnight. And with that, trends that have been gathering pace in recent years may explode this year, alongside whole new trends or concepts that are bound to catch everyone's attention.

The Retail Gazette spoke to industry experts to find out what UK retail can expect this year.

Last year saw seven out of 10 grocers reduce their plastic packaging, as well as make pledges to reduce their carbon footprint.

Alex Rohloff, co-founder of payment system Laybuy, told Retail Gazette that sustainability "will no doubt continue into 2020".

He suggested that the retail sector is likely to see strong transitions to environmentally friendly and decomposable products in the next year. Although this movement has been seen before, he said the introduction of single use plastic bags was really just "the tip of the iceberg".

Earlier this month, Debenhams unveiled its new sustainability programme to highlight new benchmarks for UK department store retailing in the 2020s. Its new commitments include sustainably sourcing 100 per cent of its cotton by 2022, and all own-brand products sold in store will have at least one sustainable attribute by September 2020.

Oliver Guy, industry director at Software AG, said environmental responsibility would become a differentiator for retailers this year. He also said the increased focus on the environment will allow retailers to access consumer choices seamlessly, helping them respond accordingly.

Food waste concerns are also expected to continue dominating retailers' agendas in 2020. AI-enabled platform Symphony RetailAI predicted that consumers will become more eco-conscious, thus placing increased pressure on retailers to forecast their food wastage as accurately as possible.

Symphony RetailAI added that retailers would likely invest in understanding consumer behaviour and events that affect demand - from traditional factors such as the weather or payday to more emerging indicators like basket size or purchase behaviours.

Technology has already transformed the retail industry beyond recognition. These days, almost every consumer is an online customer.

The shift from in-store exclusivity to omnichannel spending has pushed retailers to make huge adjustments in the way that they do business - and those who failed to adapt have been left behind.

This has encouraged further tech innovation - such as Adidas' London flagship which brought in virtual mirrors late last year, and Sainsbury's launching the UK's first till-free store.

Symphony RetailAI predicted that retailers will increasingly rely on technology to advertise their brand. Although this has been done before, the firm said "retailers will look to tech to ensure that the right customer is targeted at the right time and place".

James Harvey, chief tech officer at Cisco AppDynamics, told Retail Gazette that retailers will likely focus more on the digital customer experience rather than the in-store or face-to-face experience "for the first time ever".

Meanwhile Angus Burrell, UK general manager of payments solutions company Valitor, argued that social media will come more into play.

"The reason that social commerce will continue to be such a powerful force is because it serves one of consumers' most pressing needs; convenience," he said.

"Social networks will continue to make the path to purchase shorter and less complicated, allowing consumers to make a quick purchase with minimal effort."

While technology has undoubtedly changed the way we shop, the purpose of the bricks-and-mortar retail store has also changed.

Last year saw stablemates John Lewis and Waitrose launch a customer experience-centric concept in Southampton as part of a trial, while Adidas' 27,000sq ft London flagship introduced interactive changing room mirrors and a printing machine for customising products in store.

The Body Shop offered experiential retail with a blend of relevance - it revamped its London Bond Street store into a concept store by offering a dedicated activism corner, refill station and product zones - where customers can learn more about its sustainability initiatives.

The parent company of Westfield, Unibail-Rodamco-Westfield, recently released its How We Shop report - which discussed the "biggest retail trends to date" and predicted that over half of retail space in stores will be dedicated to experiences.

"In the next year, the penny will drop, and the role of the store will change: it'll become a place for consumers to have more of an experience," said Raphaël De Perlinghi, business director at online retailer Targus.

Burrell added: "The high street will continue to redefine itself, becoming a destination for experiences, not just product purchases."

While the competition from online retail is not to be underestimated, 2020 will see retail continue to play to its strengths, according to Symphony RetailAI. The firm added that the retail sector will see more live music, cooking classes, and other services transform store visits into "experiences to be enjoyed and sustained".

Raj Badarinath, vice president of marketing at RichRelevance, predicted that "more retailers will wake up to the realisation that key growth pockets come from competing on experiences, not on matching frictionless offerings like Amazon or Alibaba".

He added that personalisation will also have an increased role, as retailers seek to offer a "compelling shopping experience that will grant a competitive edge".

"Consumers will refuse to engage with any platform that does not offer a harmonised, accurate reflection of themselves," Badarinath said.

There's increasing evidence to suggest that consumers will flick between loyalty schemes depending on what's on offer at any given time. Due to this increasing competition, 2019, saw major retailers put forward initiatives to boost loyalty.

Morrisons teamed up with market research company IRI to offer personalised rewards, while fellow Big 4 grocer Tesco revealed Clubcard Plus would offer further savings.

Discounting is one initiative that retailers undertake when trying to attract customers, and many of them capitalise on sales events such as Black Friday - although this hasn't always worked in favour.

The ONS found in December that retail sales grew at their weakest annual rate since October 2017 despite steep discounting on the high street. Black Friday discounting failed to attract shoppers, as sales fell 0.6 per cent during November - making it the fourth monthly decline in a row.

"Those participating not only suffer from reduced margins due to the sales volume, but also due to the fact that they're effectively pulling their Christmas sales forwards in the process," Rohloff explained.

"Retailers don't especially enjoy these periods. But by choosing not to participate, they're basically conceding to their competitors who are offering customers sweeter deals."

He suggested that 2020 will see retailers introduce diverse payment options to cater for a wider range of spending habits, to help "create greater loyalty in the process".

Daniel Bailey, vice president at customer service firm Zendesk, told Retail Gazette that 2020 will see "more investment and focus placed on customer service as the 'front line'" to help boost customer loyalty and satisfaction.

"More companies will recognise the importance of customer experience to help them differentiate in an increasingly competitive market," he said.

An example of this took place less than two weeks into 2020, when Dixons Carphone said it would begin outsourcing its call centres as part of a new initiative to help increase its customer satisfaction score.

It's no secret that the retail landscape is in the midst of a dramatic shift. Consumers' needs are constantly changing, high street continues to be hit by the full force of online behemoths and this doesn't look to be coming to a halt anytime soon.

Gone are the easy days to win customer loyalty. Consumers feel no shame in looking to a competitor if a brand cannot offer them the right experience at the right price. Social media has helped to fuel this mentality, with the likes of Instagram allowing consumers to jump from retailer to retailer, with direct-to-consumer brands sells directly to their customers.

The retailers that triumph in the midst of this are those that not only offer products, but an entire culture and ethos for their audience to buy into.

What's pivotal for retailers is to ensure that they aren't just innovating or digitising for the sake of it, but truly understanding the problem that they are trying to solve, and the way they go about meeting the needs and desires of their customers.
Click here to sign up to Retail Gazette's free daily email newsletter

# data[].attributes.attachment_link.title
Top retail trends to expect in the roaring 2020s

# data[].attributes.attachment_link.description
It's no secret that retailers faced many challenges in 2019. In fact, last year saw the overall health of the UK industry at an all-time low, according to two well-known industry reports. While many hope for a less damaging year, what trends can the sector expect for the start of the new decade?

# data[].attributes.body
not just one off buzz builders, becoming marketing and selling mainstream strategies, popularised by superbrands like nike

# data[].attributes.attachment_link.readable_text
In a retail landscape trying to cater to millennials and Gen Z, experiential retail has become both buzz word and synonym for "good retail," and some sectors are better poised to adapt to that trend than others.

Beauty retail, for example, has been held up as a prime case study of experiential retail , with specialty stores like and pioneering the movement toward services, fresh store concepts and play-based retail. Their success is pushing the rest of the category to shift. Not only have drugstores like and adjusted their beauty strategy to meet the same high standards, but department store stalwarts like and Saks Fifth Avenue have also been incentivized to adapt.

But, like an infectious pop song (or an infectious disease, depending on the retailer), experiential retail has spread far beyond just the beauty department. It's surfaced in all manner of ways , from Casper's pay-to-nap concept to efforts by Nike and Adidas to make trying on sports gear a more active and involved process .

Sports and outdoor retail is another sector that could be primed for an experiential takeover, especially if more big-ticket players start buying into the model. With Nike's recent launch of the Nike Live concept - an experiential, members-only store format with a localized product assortment set to inform the brand's flagship store launching in the fall - and similar concepts set for other markets, that push is becoming more of a reality.

"The sky is the limit, especially with technology," Michael Solomon, a professor of marketing at St. Joseph's University, told Retail Dive in an interview. "You could use augmented reality to make it seem like you're playing in front of a full house at Madison Square Gardens. There's a lot of things you could do to create these very immersive environments."

ooking at Nike and REI, there are also a lot of different ways to do it.

Driving experience through data

The retailer's Nike Live concept in Los Angeles combines an in-store, physical experience, with an approach that runs on data and draws on mobile to make the shopping experience more convenient and streamlined. The smartphone-heavy approach provides much of the data that informs choices about inventory, assortment and other in-store decisions.

From a convenience perspective, the company is pushing its mobile app as a catch-all of services for everything from reserving products to loyalty points and product information. Those functions in and of themselves aren't particularly innovative, but Nike is encouraging its customers to use the app at home and in stores. Being able to collect that level of data and insight from loyal consumers could also be incredibly helpful in making sure Nike hits the mark on product selection, as long as Nike puts it to use, according to Scott Webb, president of Avionos.

"If you are a brand that can command that level of interaction, this is where you wade through the challenges so many other brands have," Webb said in an interview with Retail Dive, "which is: 'We have all this data, but no insights. We have all this information, but no better understanding.' So [it's] being able to bridge that and really create meaningful, relevant experiences based off of what I know about you as a consumer."

Webb noted that when consumers willingly give up data they expect more in return, meaning Nike's new concept could face high expectations if it allows only data-giving members into the hallowed grounds of its newest concept.

That intentional exclusivity could also work in its favor, though. Loyal customers spend more with a given brand, and in that way, targeting areas with a high concentration of loyalty members gives Nike a way to speak to its most loyal fans while also demonstrating the benefits associated with a Nike Plus membership for any customers teetering on the edge. Although i t does present challenges when it comes to replicating the concept.

In order for customers to see the appeal of this approach, the localized assortment Nike is pitching has to be spot on, according to Barbara Kahn, a professor of marketing at the Wharton School of Business at the University of Pennsylvania. The assortment is set to rotate every two weeks.

"The problems are gonna be forecasting demand and making sure you can do it in an efficient way," Kahn told Retail Dive in an interview, noting that the store's designation as a localized, exclusive concept in some ways raises the bar higher than at, for example, department stores. "They have to be way better at forecasting what's going to sell and what's not going to sell and that kind of stuff than they were because you can't put that stuff on sale to clear it out. That'll kill the whole concept."

Experiential retail as strategy

It's a bold marketing strategy to exclude shoppers, but all indications point to Nike Live being more than just a one-off flashy store to draw in shoppers. Cathy Sparks, VP and GM of Global Nike Direct Stores, told Retail Dive in July that the plan was to scale the model if it was successful, and to expand some of its services and features to the company's U.S. store fleet.

Nike has already had success with limited offerings with sneaker drops on social platforms, and Adidas recently had its own sneaker drop success story through an integration with Snapchat, but this move appears to take that ethos and apply it to an entire brick-and-mortar location. Nike by Melrose in Los Angeles will feature some products exclusive to that store, ostensibly to keep shoppers coming back, but also to give non-loyalty members a reason to buy into the club.

It has the potential for serious upside if Nike hits the right points - and as Webb notes, they've been pretty good at hitting the right points in the past.

"All other brands really strive to be as effective as Nike ... Michael Jordan stopped playing basketball 20 years ago and when the new Air Jordans come out you still have lines around the block," Webb said.

Webb also noted that with the local focus of the Nike Live concept, it likely wouldn't bring in tourists like other flagship stores - which could give any future iterations of the format the flexibility to be even more localized with assortment, whether its through celebrated athletes from the area or an emphasis on local preferences for sport and exercise types.

"The real innovation is not just generally having market-specific assortments but really using the data to drive that and then having the fulfillment capability to keep it fresh," Webb said. "Not just to do seasonal assortments, but to do bi-weekly assortments and to keep that on track and on par - that's really compelling."

Breaking the four walls

REI's approach to in-store experience - aside from having trial areas for customers to test out hiking boots and other gear - has been to abandon the store altogether. After all, why use a store to show customers how well your products work when you have the whole outdoors?

One way of creating that association is, arguably, through the event itself. For example, a customer goes on a camping trip with REI, is guided through several hikes and learns new skills along the way - later in the year, when that same customer decides they need a new pair of hiking boots, they're more likely to think of the retailer.

Even if customers aren't purchasing products as a direct result of their last REI trip, the planning that goes into vacations should put the brand top of mind for customers, according to Cort Jacoby, a partner in the consumer and retail practice of A.T. Kearney, a global strategy and management consulting firm.

"It's a way of really enhancing the brand I think in the consumer's mind," Jacoby told Retail Dive in an interview. "And think of how many times you may be thinking about a company like REI as you're thinking about that trip. The mindshare and the brand equity, I think, is exploding when you go through and enhance and bring these experiences to the consumer's mind."

REI co-op members seem to be the target audience for these excursions, and they receive discounts on Adventures, which vary depending on the trip. Importantly, the whole proposition remains heavily in-line with REI's brand, drawing from similar marketing campaigns like the #OptOutside Black Friday movement , which has expanded every year.

"You've got the same customer who's buying the backpack is also an adventure traveler, so why not get into the travel business? Or partner with someone who does it?" Solomon said, noting that REI's most loyal customers are the obvious starting point, whether or not REI uses the trips to lure in new shoppers in the future.

Most retailers are probably far from adding a travel component to their business - and not all of them should. What works for REI won't work for Nike, nor will it work perfectly for other retailers. Still, it is worth thinking outside the box. Last year, REI drew in 375,000 people through its Outdoor Programs and it currently features over 175 itineraries for REI Adventures.

Whether or not international travel is on the list, other retailers would do well to consider opportunities of their own for getting outside the store, according to Jacoby. "The inside of the store is a great thing, but let's face it: the traffic continues to decline. That's just a major trend that continues to happen," he said. "I think it's great for companies to be able to expand that presence within the store with experiences and activities, but I don't think that's sufficient at this point."

In addition to being an interesting take on experience, Solomon said there is much to gain from retailers selling products that pertain to a particular role - in REI's case the adventurer - rather than sticking to one vertical. For REI, that means selling hiking boots, backpacks and camping trips where those products are used. Solomon sees possibilities for a similar approach at most retailers.

In order for that to be successful, though, store associates must be well-trained and knowledgeable - more in line with REI or Nordstrom's approach to service than the sometimes lackluster training given to store associates.

"You've got this paradox where millions of dollars are being invested and they're all resting on the shoulders of the least-paid person in the organization," Solomon said, adding that for big projects like REI Adventures, where loyal customers are the target, retailers can't afford to disappoint them.

That doesn't mean an entrance into experiential retail of any type should be taken lightly - it's often a serious investment, no matter the approach, and retailers should be cognizant of not copying successful retailers just to feel like they're playing the game, Solomon noted.

"The lesson is: You have to walk before you can run," Solomon said, "but good god, get off your butt and start walking at least, because if you just view your store as a place to hang merchandise you're going to be out of business in three years."

# data[].attributes.attachment_link.title
How Nike and REI made experiential retail a strategy

# data[].attributes.attachment_link.description
In a retail landscape trying to cater to millennials and Gen Z, experiential retail has become both buzz word and synonym for "good retail," and some sectors are better poised to adapt to that trend than others.

# data[].attributes.body
Glossier
instagrammable
brand identity driven
millenial brand
pop up london inspired

# data[].attributes.attachment_link.readable_text
Inspired by Britain's traditional (and perhaps rather fusty) social clubs, the shop embraces the idiosyncrasies of British architecture and interiors; as an obvious starting point, the whole place is decked in William Morris-style wallpaper and carpets that were hand drawn by the in-house creative team.

Each room follows a particular colour scheme, from zesty orange to ocean blue, and bears all the essential hallmarks of a Glossier store: positive affirmations, such as "You Look Good", written upon mirrors, a welcoming homely vibe with lots of seating for bored boyfriends or those who just want to survey the scene, and most excitingly, quirky secret doors to different areas of the pop-up. In a word, it's fun, like you'll have come to expect from the brand whose New York flagship store averages 50,000 visitors a month. And all at just five years old.

# data[].attributes.attachment_link.title
Glossier's London Pop-Up Is Its Most Successful Of All Time - And It's Staying Put

# data[].attributes.attachment_link.description
Inspired by Britain's traditional (and perhaps rather fusty) social clubs, the shop embraces the idiosyncrasies of British architecture and interiors; as an obvious starting point, the whole place is decked in William Morris-style wallpaper and carpets that were hand drawn by the in-house creative team.

# data[].attributes.body
Oxford street flagship
constantly changing
always experiential in store + one off experiences

# data[].attributes.attachment_link.readable_text
Adidas analyses customers' running styles using a treadmill and sensors so they can receive personalised footwear recommendations

In the footwear department of the new adidas flagship on London's Oxford Street, a customer takes out his smartphone, clicks on the adidas app and, via the Bring It To Me tech, scans the shoe he has been browsing.

The details come up: it's from the Predator Precision range by David Beckham. The customer selects his size, requests to try it on, then moves to a different department in the 2,500sqm store.

Through geo-tracking, the sales assistant who picked up the request quickly locates him and presents the box-fresh trainers. The customer is speechless. The sales assistant is David Beckham.

Granted, it was a one-off, but the moment is representative of the brand's ambition for its capital adidas high street outlet: to blend technology with physical brand theatre to hit the sweeit spot of an immersive shopping experience.

Embracing the tech-driven experience in store

According to The State of Fashion 2020 report by McKinsey and Company and Business of Fashion, four in five customers shopping in stores browse the internet on their phones.

The report says: "A fully tech-driven in-store experience is currently the exception rather than the rule, [but] players at the cutting-edge are increasingly exploring technologies that could one day become commonplace. For the customer, cutting-edge tools create an immersive experience and aid decision-making on interactive devices."

Big-box retail needs to be playful and theatrical, and that's why there will always be a place for it

Dubbed "our most digital store yet" by Hannah Mercer, vice president of global retail and franchise operations, the adidas flagship, which opened in late-October, features more than 100 digital touchpoints and will become a template, through learning and tweaking, for other stores.

"We developed the Bring It To Me technology in-house and it has done so well here that we've already scaled it to 45 stores in the United States," says Ms Mercer, as we tour the four-storey adidas Oxford Street store and pause at the MakerLab, where customers can personalise product with customisation options including flocking, embroidery and artistic heat-pressing.

"We're already looking at how we can make MakerLab bigger in Paris and New York," she says. "The high street is not dead. We shouldn't be worrying about declining traffic in terms of big-box retail so long as they have a great experience.

How to improve your net promoter score

"The retailers that have struggled in a troubling economy haven't changed enough. If you're a big-box retailer and it's full of racks, I'd be at home on the sofa doing my shopping. You have to make it exciting."

For Ms Mercer, the measure of success comes down to net promoter score (NPS) and conversion. "Density and linear foot measurement are gone. It's not about getting the biggest assortment; it's about getting the best or the most exclusive," she says, pointing out that adidas LDN's best-selling product is a simple black T-shirt from its exclusive London range, only available at the flagship.

"The NPS in this store is between 94 and 97 per cent, one of the best in the world. Conversion went from 15 per cent, what most full-price stores along here will be on, to 20 per cent and trading in the first month has exceeded expectations."

Areas that are smashing conversion rates include women's footwear and Ms Mercer credits the adidas flagship's Running Lab, a discreet treadmill facing a giant digital screen of a London backdrop, which changes the faster the customer runs.

Special pods are synced to a tablet and then attached to the customer's trainers. After a few minutes' running, the pods transfer data about the running style of the customer and makes footwear recommendations.

Today, it is staffed by Akesha Smith, who also happens to be a 400-metre hurdler. "Customers trust it," says Ms Mercer. "You have a true athlete supported by technology." Here, conversion currently stands at 85 per cent.

What makes a great flagship store?

But is the blend of high-tech and experiential retail the preserve of the big brands and their flagship stores?

"Flagship stores are designed to attract a large volume of consumers by offering unique experiences, so it makes sense to prioritise the latest technology," says Huw Owen, head of Europe, Middle East and Africa at Couchbase, a Silicon Valley-based tech company, whose clients include Louis Vuitton and Tesco.

"However, the majority of retailers, particularly smaller stores, won't see the benefit of this alone, which is why it's crucial to apply technology for more operational services, like price checks, payment and inventory management."

According to software company MuleSoft's 2019 consumer research report, despite the hype around augmented and virtual reality, consumers place greater value on the basics, with 80 per cent saying inaccurate data, such as stock availability, would make them likely to shop with another retailer next time. Some 44 per cent said they hadn't seen innovations, such as cashierless stores, mobile-driven in-store experiences and personalised offers, at their local stores.

Adidas flagship offerings

The ground floor of the adidas flagship, the area the customer sees first, is a clear sign of the brand's confidence. At the centre, men in white coats stand next to trainers dipping in and out of liquid resin, as part of the brand's temporary Future of Sport installation.

To the right is the sustainability wall, a permanent installation. The rest of the store is built on a modular system that tells the story of adidas's pledge to use no virgin plastic by 2024. The store is 100 per cent powered by green energy and has BREEAM-certified (Building Research Establishment Environmental Assessment Method) sustainable materials used throughout.

"We do it because it's the right thing to do," says Ms Mercer of the approach to sustainability, which has been embedded in the brand for the last 20 years. "I've done lots of big-box retail over the years and here I have an entire ground floor to play with. It allows us to tell a story. Big-box retail needs to be playful and theatrical, and that's why [as she points across the road to the 110-year-old Selfridges] there will always be a place for it."

# data[].attributes.attachment_link.title
How the adidas flagship embodies immersive retail

# data[].attributes.attachment_link.description
In the footwear department of the new adidas flagship on London's Oxford Street, a customer takes out his smartphone, clicks on the adidas app and, via the Bring It To Me tech, scans the shoe he has been browsing. The details come up: it's from the Predator Precision range by David Beckham.

# data[].attributes.body
Coach CEO, lots of popups as a brand
very lucrative
short leases available, trial and error with less risk
store closures for many brands

# data[].attributes.attachment_link.title
How Temporary Pop-Ups Became a Permanent Strategy _ Intelligence, BoF Professional _ BoF

# data[].attributes.attachment_link.title
Towards the store of the future- Alexander B ( 2019)

# data[].attributes.body
Story telling
fluid space, always changing
community focused
tech driven

# data[].attributes.body
purpose
different models
future increased brand involvement?
filling temporary need
stigma of it being second hand

# data[].attributes.attachment_link.title
Hire calling: why rental fashion is taking off

# data[].attributes.attachment_link.description
It could be a wedding invitation. Perhaps a job interview is coming up. Or maybe it's just a big night out. There are many reasons people shop for new clothes. But environmentally conscious and cash savvy consumers are increasingly opting to rent rather than buy when they want a new outfit.

# data[].attributes.body
lucrative popups
role of dep stores

# data[].attributes.headline
Sustainability X new ownership business models

# data[].attributes.subject
Sustainability X new ownership business models

# data[].attributes.body
rental and (resale)
strategy vs business model, what comes first, what do you want to achieve etc
alter business models to serve the changing needs of the consumer

# data[].attributes.body
the new department stores
exhibitions
digital expos
changing spaces

# data[].attributes.body
Shopping for product or shopping for ethical reasons - divided by continents

# data[].attributes.body
more difficult more difficult for brands to ignore
growing of the conscious consumer, brands will have to cater or be wiped out by those who do
rental models are a solution

# data[].attributes.attachment_link.title
Fashion Needs Sustainability _ HYPEBEAST

# data[].attributes.body
Experiential store/immersive shopping through entire store
tactics

# data[].attributes.attachment_link.title
To Save Retail, Let It Die | Opinion, Retail Prophet | BoF

# data[].attributes.body
Rent the runway interview. (2)

# data[].attributes.body
interview with ceo  Jennifer Hyman (1) (mckinsey)

Why some of industry is still reluctant to embrace rental
stigma against rental clothing

# data[].attributes.body
rise of resale
rise of rental

# data[].attributes.body
rental and resale more relevant in. 2019 and expected to further increase