How ‘Pre-Loved’ Retailers are driving the UK Circular Economy in Fashion

The global fast fashion industry generates 10% of global carbon emissions and is the second largest consumer of the world’s water supply.¹ Excessive waste is generated throughout the lifecycle of a garment. The solutions to these problems being put forward by innovative entrepreneurs and businesses building the circular economy have never been so important.

The solutions are being spearheaded by Second-hand Apparel platforms such as Kidswear Collective, Thrift+ and Depop. These platforms provide an increasingly conscious UK consumer with a more environmentally friendly way to buy clothes from the brands they love. They also help to reduce waste from clothes that may be at the end of their life for one person, but still hold appeal to others. The second-hand clothing market has matured rapidly in the past few years. The $119bn global apparel resale market is due to grow by a further 127% by 2026². 

“Brands and retailers are increasingly aware that having a sustainability strategy is not an option, it’s a necessity. As more established businesses occupy the space, we are seeing greater trust in the resale consignment model. As the only pre-owned fashion store at Bicester Village, we are seeing an acceleration in customers seeking out both affordable luxury items and the exclusivity associated with one of a kind pre-loved designer pieces.”

Anthony Chistodoulou, Founders of Kidswear Collective

Gen Z and Millennials are driving demand for second-hand clothing online with 42% of those consumer group stating a willingness to buy second-hand apparel in 2021⁵. Uptake has been slower among older generations. Over 65s prefer traditional bricks and mortar with more than three quarters (77.7%) of resale fashion shoppers having purchased from a charity shop in 2021.

Businesses like Thrift+ are working to broaden the appeal of make second-hand shopping across all consumers:

“While there has been a huge acceleration in the number of people shopping for pre-loved fashion, there is so much further to go. A huge portion of the population still buy predominantly ‘new’ clothes. They are put off looking at pre-loved clothes by concerns that second-hand fashion may be poor-quality or that good pieces will be hard to find. By offering a seamless online shopping experience, we aim to attract a new wave of customers who can benefit from high quality at affordable prices, while also lowering the environmental footprint of their fashion spend.”

Thrift+ Founder and CEO Joe Metcalfe

In 2021, second-hand clothes displaced almost 1 billion of new clothes purchases. This growth is driving exciting new partnerships between technology driven ‘circularity-enablers’ and established retailers seeking to reduce waste and recover lost sales. This trend is expected to pick up pace in 2023, with recent examples including Kidswear Collective’s collaboration with Selfridges, Thrift+’s partnership with Gymshark and Tommy Hilfiger’s work with Depop.

“Many luxury brands and retailers are partnering with resale as a service (RAAS) platforms who are able to process and curate standalone pre-loved collections for them. Kidswear Collective has several such partnerships with retailers including Selfridges, Fenwick and Galeries Lafayette. Recent studies suggest over 70% of companies prefer to partner with a resale platform rather than do it themselves, as their main focus is on the primary market.”

“By carrying resale items, retailers and brands have the ‘halo effect’ associated with re-sale and embracing circular fashion as a core part of their business model, but it also provides customers with a reason to keep visiting their stores / websites, with the allure of finding something unique and different every time. Brands and retailers can go one step further by rewarding customers for their sustainable purchase (which can range from rewards to discounts off new season collections).”

Anthony Chistodoulou, Co-Founder of Kidswear Collective

A quarter of every wardrobe across the UK is never worn, amounting to 1.6 billion items of clothing. Getting unworn clothes back into circulation is the key to a successful second-hand fashion system. Joe Metcalfe of Thrift+ remarks: “Our research tells us that the #1 barrier to recirculating unwanted clothes is simply finding the time to do a wardrobe clear out. Busy people don’t always have the time to re-sell individual pieces, so we offer a smooth wardrobe clear-out service with free home collection to lighten the load and make the process effortless.” Increasing the amount of quality supply drives up demand for pre-loved and diverts spend away from new purchases.

With more and more customers turning to pre-loved clothing, retailers should be taking advantage of this exciting and quickly evolving sales channel as an opportunity for innovation and growth.

 

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¹ Morgan McFall-Johnsen (2020)

²ThredUP

³GlobalData

⁴ Statista

⁵ BDO Retail Forecast 2023