The Importance Of A Resale Strategy

The resale market used to be called the "gray market." The type of thing that was the realm of "this product must have fallen off a truck."

With how the circular economy is heating up, it's pretty safe to say that gray is the new black.

What's happened? In the last few weeks, moves by Nike and Lululemon dominate the press. If you are a premium brand and don't have a resale strategy, you are missing out on a big opportunity and a way to connect with your consumer.

The reason? Simply your brand is desirable not just to the top 5% of the market. And it's not just online. Nike will start selling gently used shoes in their stores. So this is not a digital-only play.

This will ultimately create more liquidity for the reseller marketplace market (Poshmark, etc) as well.

Look, the original here was eBay. But they are not able to capture the entire market. In the past few years, Rent the Runway and Caastle have been providing services. Trove has entered the space (who Lululemon is using) but there will be others.

Many consumers care about their impact on the global supply chain. But just as importantly, many consumers care about quality and price!