# data[].attributes.body
- This pandemic only proliferates the need for industry-wide, systemic, change.

- Transparency is a vital step towards a more sustainable future for the industry.

- what will happen to all of these perfectly good items and all the material that was used to make them? Will they be sold, reused, given to charities, go to landfill, be incinerated, recycled? Fashion already has such a huge waste problem; will this crisis exacerbate the problem or will companies accelerate the development of better textile recycling technology?

- It is causing people to reassess and reprioritise what they spend money on. This could result in fashion trends slowing down for a while and potentially influence brands to focus on delivering fewer, better quality products to remain profitable.

# data[].attributes.attachment_link.readable_text
In recent months, major fashion brands and retailers have been cancelling orders, including for products already made and waiting to be sent to stores, and delaying payments to their suppliers.

According to the Bangladesh Garment Manufacturers Exporters Association (BGMEA), there has been $3.18 billion in cancelled or suspended orders, which is equivalent to 982 million pieces [1]. On 29 April 2020, the BBC reported that up to half of the 4 million garment workers in Bangladesh, mostly women, may lose their jobs [2]. And, this crisis isn't just affecting workers in garment factories. It is also having a profound effect further down the supply chain on some of the workers with the most precarious jobs - the homeworkers who are unable to access support from brands or the government as they aren't in legally recognised employment; the migrant workers who have lost their jobs but are isolated hundreds of miles from their families; and the cotton farmers unable to harvest their fields.

This pandemic only proliferates the need for industry-wide, systemic, change. Many of the human rights issues we look at throughout this course have gotten worse since the beginning of the global pandemic.

Transparency is a vital step towards a more sustainable future for the industry. What we can't see, we cannot fix.

If major brands and retailers publish information about who their suppliers are and how they do business with them, then brands can be held to account for leaving their suppliers and supply chain workers in the lurch during such a terrible public health and financial crisis.

Since the outbreak, fashion brands have reportedly stopped taking deliveries while clothing is piling up in warehouses during the lockdown. By the time stores reopen these products may well be considered 'out of season'. This begs the question: what will happen to all of these perfectly good items and all the material that was used to make them? Will they be sold, reused, given to charities, go to landfill, be incinerated, recycled? Fashion already has such a huge waste problem; will this crisis exacerbate the problem or will companies accelerate the development of better textile recycling technology?

Furthermore, as people are forced to stay at home and retail stores continue to be closed around the world, the demand for clothing has plummeted. It is causing people to reassess and reprioritise what they spend money on. This could result in fashion trends slowing down for a while and potentially influence brands to focus on delivering fewer, better quality products to remain profitable. Or, things could go back to business-as-usual with a focus on speed and high- volume production. However, we suspect that consumers and brands will have to adapt to a new normal, what that looks like only time will tell but taking action to mitigate the issues we will learn about throughout the course, will be more important than ever.

For more information on COVID-19 and the fashion industry, you can also check out this Fashion Revolution blog post and our further reading suggestions at the end of week 1.

References

1. Bangladeshi and Garment Manufacturers Exporters Association (BGMEA). 2020. [Cited 1 May 2020]. Available at: https://www.bgmea.com.bd/

2. Hossain A. Coronavirus: Two million Bangladesh jobs 'at risk' as clothes orders dry up. BBC News. [Cited 1 May 2020]. Available at: https://www.bbc.co.uk/news/world-asia-52417822

# data[].attributes.attachment_link.title
COVID-19 and its impact on the fashion industry.

# data[].attributes.attachment_link.description
In recent months, major fashion brands and retailers have been cancelling orders, including for products already made and waiting to be sent to stores, and delaying payments to their suppliers. According to the Bangladesh Garment Manufacturers Exporters Association (BGMEA), there has been $3.18 billion in cancelled or suspended orders, which is equivalent to 982 million pieces [1].

# data[].attributes.body
how quickly we are consuming and discarding our clothes; how we look after our clothes; what happens when we dispose of them and so much more.

# data[].attributes.body
1st June - Proposal
3rd August - Presentations
16th August - Hand in

# data[].attributes.body
Finance

# data[].attributes.attachment_link.readable_text
Not just a buzzword, recommerce is flourishing as retailers are tapping second-hand partners to implement a circular process for a more sustainable future. Read on as we delve into the success of the resale market, the brands pioneering the movement and the recent labels entering this space.
Want to learn how EDITED data can support your retail decision making? Find out more here.

Tradesy US Email
05 Oct 2019

What is recommerce and why has it worked?

* Recommerce is the act of selling a previously newly bought item and extending its shelf life to a second owner.

* Due to the massive contribution to landfill from the fashion industry, retailers are seeking more sustainable processes to continue the lifecycle of pre-worn garments.

* Circular initiatives currently in focus include buy-back schemes, where retailers accept returned items to be repaired, resold or recycled into new products or partnerships with recommerce platforms.

* The success of the resale market has shifted consumer's perception of second-hand apparel, which resonates with the eco-conscious younger consumers. Additionally, more luxury brands are strengthening their relationships with the second-hand market, giving high-end product reach to a wider audience.

* The resale market helped extend the hype for items, which can often increase in value; particularly for streetwear, sneakers, and collaborations. For example, the Supreme x Louis Vuitton Danube Satchel, (PM: petite model) originally sold for $2,410 when it first dropped in 2017. It can now be found on Vestiaire Collective for $11,430.00 - a price increase of 374%.
Looking for an in-depth analysis of retail trends and industry insights? Get access to our daily reports here.
The major players

Who are the retailers pioneering this movement?

The RealReal
Launched: 2011

Offers: Luxury womenswear, menswear, kidswear, fine jewelry, watches, fine art and homewares.

Perks: A team of 100+ luxury brand authenticators and bricks and mortar stores.

ThredUP
Launched: 2009

Offers: Womenswear, childrenswear, maternity, plus and luxury.

Perks: Low price 'goody boxes', accepts donations, free shipping and returns.

Vestiaire Collective
Launched: 2009

Offers: Womenswear, menswear, childrenswear, vintage, luxury, home decor, sports equipment and art.

Perks: Buy now, pay later.

Depop
Launched: 2011

Offers: Local artists and designers, streetwear, vintage and one-off pieces.

Perks: Strong Gen-Z following, bricks and mortar stores and popup markets

Poshmark
Launched: 2011

Offers: Womenswear, menswear, childrenswear, homewares and makeup.

Perks: Peer-to-peer selling through 'Posh Parties' and pre-paid shipping labels.

Tradesy
Launched: 2009

Offers: Luxury womenswear and bridal.

Perks: Offers professional styling and wardrobe organization services.

The importance of the sneaker resale market

Sneakers are a significant category fueling the growth of the second-hand market and are sought after items within this space. The sneaker resale market is estimated to be worth $2 billion and projected to triple in size by 2025. Platforms such as StockX, GOAT, Flight Club and Stadium Goods are the key players within this space.

Recommerce in the news

* Selfridges is taking a bite out of the $25 billion luxury resale market through a new partnership with Vestiaire Collective. The Parisian resale site opens its first permanent physical shop in Selfridges' Oxford Street store on the 30th of October.

Customers will be able to buy and sell clothes at the space which will stock 200 pre-loved designer items, including 10 rare vintage pieces from brands like Versace and Maison Margiela.

* Luxury handbag resale platform, Rebag introduced new technology to help determine the resale value of an item. The software, called Clair, can be used to instantly price unwanted items, making reselling easier and more transparent for the consumer.

* Leaders of the sneaker resale market, Goat, added apparel and accessories to its platform. Luxury, contemporary and streetwear labels including Gucci, Acne Studios, Maison Margiela, Off-White and Stussy are now available to purchase at retail price with plans for future resale expansion in these categories.

* Expanding on its Second Life model, Farfetch partnered with donation service Thrift+. UK shoppers can now donate unwanted clothes and accessories to the site in exchange for Farfetch credit.

* ASOS Marketplace has announced its charity boutique initiative will return in late Fall. Charities that will be available via the Marketplace include Oxfam Festival Shop, Barnardo's, Traid, Save the Children and British Red Cross.

* The Kardashian-Jenners ventured into this space with the launch of a resale site called Kardashian Kloset, where customers can shop directly from each family member's closet. Prices range from $20 for an adidas t-shirt to $25,000 for an Yves Salomon fur vest.

* In the UK, adidas joined forces with Stuffstr and will offer consumers vouchers in exchange for unwanted garments. The returned items will either be repaired and resold, or broken down to make new garments.

* John Lewis is also on the buy-back bandwagon. For six weeks (starting the 4th of October), customers can return pre-loved clothing from brands stocked by the department store to the Oxford store in exchange for £3 per item to be spent at John Lewis & Partners or Waitrose & Partners.

Brand adoption timeline

A list of communications from the past year around retailers partnering with recommerce sites or launching resell initiatives:

Lolë's Yellow Label Event - Oct 2018

Reformation's Partnerships - Oct 2018

Farfetch's Second Life Initiative - May 2019

Macy's x ThredUP - Aug 2019

The RealReal x Burberry - Oct 2019

Madewell x ThredUp - Oct 2019

As consumers demand more sustainable practices from the brands they shop at, it's important for retailers to take part in the second-hand market, whether through collaborations with established resale brands or creating their own initiatives. Recommerce is not just about giving new life to old items. It's also shaping the future of retail by changing consumer habits and business models.

To keep your finger on the pulse of the latest industry insights, sign up to our weekly roundup here.

# data[].attributes.attachment_link.title
Why everyone's talking about recommerce - EDITED

# data[].attributes.attachment_link.description
Want to learn how EDITED data can support your retail decision making? Find out more here. What is recommerce and why has it worked? * Recommerce is the act of selling a previously newly bought item and extending its shelf life to a second owner.

# data[].attributes.attachment_link.title
The Future of Fashion Article - Ellie Boad

# data[].attributes.attachment_link.description
Flipsnack is a digital catalog maker that makes it easy to create, publish and share html5 flipbooks. Upload a PDF or design from scratch flyers, magazines, books and more. Author: Ellie, Catalog: The Future of Fashion Article - Ellie Boad, Published: Dec 28, 2019

# data[].attributes.attachment_link.readable_text
You overhear a lot in queues, particularly the five-hour one I was in for the train to leave Glastonbury last weekend. Aside from the complaints about said interminable line, the main topic of conversation of the group next to me was all about the things they had scored on Depop.

From Nike trainers to Comme des Garçons jackets - even four Casio watches for about £12 - these friends were trying to outdo each another with their respective purchases.

Depop, if you've never come across it before, is a peer-to-peer (P2P) commerce platform, a sort of combination of eBay and Instagram. It's extremely popular with Generation Z; of its 13 million users across the globe, about 90 per cent are under 25. The company recently raised £50 million to propel its growth.

At the helm is Maria Raga, aged 40, who is originally from Valencia and has lived in London for the past 10 years. She joined Depop in 2014 and became the company's CEO three years ago.

The future of fashion? It will be powered by AI and mixed reality

Depop's success at attracting the youth customer is something of an enigma in a shopping space where more and more brands struggle to get young people on board. Raga believes its success is down to three key elements in the Depop ethos: entrepreneurship, diversity and sustainability.

"We're solving the problems that our users are telling us about and that they feel the industry is not really solving," explains Raga at the company's global HQ in Shoreditch. "The fashion industry has traditionally been very hard to break into; it's not very approachable. We're solving [that] by allowing people to build their shops through Depop."

The diversity strand is all about young people seeking out something different from what's found in the high street. Raga says they can spot trends on Depop three to four months before they start to pick up on Google. For example, while it used to be streetwear heritage brands such as Champion and Fila that were selling fast, now it's more likely to be Salomon, the French ski and hiking brand, or Noughties stalwart Ed Hardy.

In future, Depop wants to utilise machine learning to identify these trends and deliver them to their Top Sellers - similar to the YouTube Creators programme - so they can adjust their stock accordingly. (Some Top Sellers are making £100,000 a year from the platform.) "It's sort of obvious because part of the community are the fore-thinkers, they're really passionate about fashion so they become trendsetters. And they have a community, a set of followers on Depop, so they can really influence," explains Raga.

As a resale marketplace, Depop ticks that sustainability box. But it feels it can do more to reduce the fashion industry's unwanted record of producing 20 per cent of global wastewater and 10 per cent of global carbon emissions. Raga is keen to work with brands on initiatives such as taking their excess fabric and giving it to Depop sellers to work with. The company also helps Top Sellers source biodegradable packaging - no easy feat when you're selling items out of your bedroom.

"We're in discussion with some brands. It's very early days but we're hopeful that we can help the industry be more sustainable. There are so many opportunities for us to help and we're just at the beginning of it," adds Raga.

The social aspect also brings people to the platform. Potential buyers can connect with sellers easily, with Depop users collectively following and messaging each other 85 million times a month - haggling over pricing is a central facet of Depop, according to regular complaints on Twitter. But this appeals to a core tenant of Gen Z - shunning big brands. "The younger generation is more sceptical of big establishments and is more likely to buy from friends or people they like to be influenced by," says Raga.

How Instagram is going to change the way you shop online

Depop isn't alone in this "social shopping" space. Facebook-owned Instagram is leaning into the idea of social commerce by adding new features such as allowing followers to buy products directly from their favourite influencers' feeds. Given the fact that Instagram almost crushed Snapchat with the launch of its Stories feature - Instagram Stories now has 500 million daily active users compared to Snapchat's 191 million - is Depop wary of the effect Instagram could have?

"We believe first of all that the space is very big," says Raga diplomatically. "We also believe that our focus is around Gen Zs, and Instagram is very broad in terms of audience, age and fashion. For us, we continue to be focused on the younger generation, and that's always going to be our core."

So what's next for Depop? The £50 million recently raised is going to go towards expanding Depop's footprint in the US, as well as building in more recommendation and image-detection algorithms - a moderation team looks out for items that are fraudulent or counterfeit, while machine learning helps with this too. The company's marketing and developer teams reside in New York and LA, though the engineering, product and design teams are based here in London.

Though Depop is growing fast in the US, Raga wants to keep the London office as the HQ. "Being in the fashion industry it's important to be close to Europe. The majority of the brands and most of the creativity are here."

Raga also hopes the platform will have a bigger role in the fashion ecosystem as it grows, as well as hold more live events - two recent ones included a Hackney market featuring London-based sellers and a series of live talks and events in New York, covering topics such as sustainability in fashion and building a business from your bedroom.

Raga says she had goosebumps listening to some of the speakers. "One of the best comments I received from the live event in New York was this: 'If I were to picture what Depop would be in real life, this would be it.'"

Depop Dynasty: Meet the top sellers

Internet Girl: Bella McFadden, 23, is one of the most recognised sellers on the platform, earning a top status in 2018 for her collections of inclusive, Y2K-flavoured clothing.

Oliver's Archive: Bristol-based Ollie started selling on the platform with a single Tommy Hilfiger fleece and has since grown his profile into a masterful cultivation of designer vintage and streetwear favourites.

Past Trash: Sister duo Bo and Eve Brearley recently took part in the Depop Hackney pop-up. Visit their profile for top Nineties and early Noughties items and accessories.

# data[].attributes.attachment_link.title
Social commerce app Depop is changing the way Gen Z shops

# data[].attributes.attachment_link.description
You overhear a lot in queues, particularly the five-hour one I was in for the train to leave Glastonbury last weekend. Aside from the complaints about said interminable line, the main topic of conversation of the group next to me was all about the things they had scored on Depop.

# data[].attributes.attachment_link.readable_text
Selfridges London will host Vestiaire Collective's first permanent concession for customers to buy and sell luxury goods.

Secondhand luxury is growing four times faster than the primary luxury market, with expected global revenues of $36 billion by 2021.

Luxury brands and retailers, including Burberry and Farfetch, are beginning to test how partnerships with secondhand marketplaces can benefit their businesses.

Young shoppers want limited-edition or sold-out items, millennials want sustainability-minded brands, and secondhand consignors want to buy more new products: these are among the findings of a Boston Consulting Group report on the resale market - and Selfridges got the message.

Starting 30 October, customers visiting the high-end department store in London will be able to buy rare vintage pieces and sell pre-owned luxury goods through resale platform Vestiaire Collective.

That Vestiaire would open its first permanent location in a 111-year-old department store demonstrates how much the resale market has changed since the French e-tailer was founded 10 years ago. Secondhand luxury is growing four times faster than the primary luxury market, with expected global revenues of $36 billion by 2021, according to BCG. Meanwhile, online platforms, which have added technology and scale to the equation, now account for 25 per cent of these sales.

Luxury players have begun testing how they might benefit. Earlier this month, Farfetch partnered with clothing donation service Thrift+ and Burberry with resale platform The RealReal on programmes that incentivise customers to give up old pieces in exchange for credit, or to receive styling sessions, so that they can buy new products. In September, Harvey Nichols began selling services from The Restory that help customers preserve luxury accessories that they can later resell; earlier this year, Neiman Marcus took a minority stake in luxury reseller Fashionphile.

"It is a huge opportunity to innovate, both in terms of design and product but also from a business model perspective," says Selfridges sustainability consultant Alex McIntosh. "We see our role as giving our luxury brand partners a space to experiment and explore how circular business models might work for them and to see how our customers respond."

Responding to customer behaviour

In 2018, Selfridges hosted two two-week-long Vestiaire pop-ups, one for men and one for women. "We learned that resale can be part of a luxury experience, that it is something our customers want and that it has significant commercial potential for our business," McIntosh says.

Vestiaire Collective CEO Max Bittner says that sales were "good". He also observed that customers treat secondhand shopping as a "treasure hunt", and was surprised at the level of historical fashion knowledge among customers.

To cater to those customers, the Selfridges Vestiaire boutique will open with 200 accessories and ready-to-wear womenswear pieces that are exclusive to the boutique, including a Mugler rainbow jacket from Spring/Summer 1990 (£2,650), an Azzedine Alaïa "Mon Coeur est à Papa" dress (£3,685) and an Yves Saint Laurent Rive Gauche cape (£495).

The partnership is a permanent concession, suggesting that Vestiaire pays for the retail space, but neither would share financial details.

The boutique helps customers sell pieces, either through a drop-off concierge service, where pieces are evaluated and processed by Vestiaire, or by listing the item directly through the app using a white photo backdrop available on-site.

Secondhand sales benefit primary sales

Luxury brands have largely refrained from taking part in secondhand sales, partly out of concern that it would cannibalise primary sales and risk entry from counterfeit goods. But the contrary is true, says BCG managing director and partner Olivier Abtan.

"As is the case with cars and video games, the secondhand market helps or supports the development of the firsthand market," Abtan says. "There are many ways to participate, and each brand is going to find a way that fits its DNA." In the case of Selfridges, he says, the Vestiaire boutique is a way to recruit new customers, extend the lifetime value of existing clients and to encourage customers to buy more expensive pieces.

BCG found that 71 per cent of pre-owned buyers bought items they could not afford firsthand, suggesting that these customers are not stealing market share from the primary market. But they might turn in to primary market customers; 62 per cent said they bought a brand for the first time on Vestiaire and would consider buying that brand again. More than half of those said they would consider buying the item firsthand.

"Maybe they will buy luxury goods at your store, but six months later, if you don't offer the opportunity to consign it, they will go somewhere else," Abtan says, pointing out that 32 per cent of those who consign items are doing it because they want money to buy new goods, and 44 per cent say they buy more expensive items than they would if they couldn't resell it. Bittner says this increases the likelihood that customers will buy more adventuresome pieces, rather than buying "safe" items.

Bittner says partnerships between luxury brands and resale companies - which stand to help fight counterfeits and can provide data on purchasing patterns to luxury brands - will become the new normal. Abtan adds, "It's a new world we are living in. It's moving very fast. You have to test, and sometimes it doesn't work - but sometimes it's a success."
To receive the Vogue Business Sustainability Edit, sign up here.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More on this topic: Burberry's partnership with The RealReal signifies a real shift Who are luxury resellers stealing market share from? Kardashian Kloset takes on the resale market

# data[].attributes.attachment_link.title
Selfridges becomes latest luxury player to endorse resale

# data[].attributes.attachment_link.description
Selfridges London will host Vestiaire Collective's first permanent concession for customers to buy and sell luxury goods. Secondhand luxury is growing four times faster than the primary luxury market, with expected global revenues of $36 billion by 2021. Luxury brands and retailers, including Burberry and Farfetch, are beginning to test how partnerships with secondhand marketplaces can benefit their businesses.