Second-hand resale is by far the segment of the global fashion market. Over the next five years, clothing resale is expected to grow three times faster than the number one market, from $96 billion in 2021 to $218 billion through 2026, according to the latest Report Thredup Resale, the most reliable fashion resale study.
And in the second-hand fashion market, online resale is the fastest developing, expected to be successful in more than 50% of the market by 2024 and to quadruple at most until 2026. To date, third-party marketplaces such as Poshmark, Vestiaire Collective, eBay, The RealReal and Thredup have benefited the most from generosity.
Now, Recurate offers brands another alternative. Recurate is a generation platform that allows brands to enter ground with their own resale capacity fully incorporated into their e-commerce sites. And the service is not limited only to fashion, accessories and footwear, but also to electronics, gadgets and appliances companies. .
Founded in 2020 through CHIEF Executive Officer Adam Siegel and Chief Operating Officer Wilson Griffin, the company just secured $14 million in Series A financing, bringing its total foreign investment to more than $17. 5 million. The budget will be used to optimize logo integration, knowledge analysis capability, and find answers for logos to resell unsold stock and product returns, as well as explore auctions and other recycling opportunities.
“Recurate was founded to integrate seamless and seamless resale into each and every business experience, expanding the sustainability, visitor loyalty and profits of our brands,” Siegel said in a statement.
Yelena Shkolnick, wife of Jump Capital, who led this investment round, added, “We look forward to the ease of purchasing and referencing products through logo sites to bring logos to many new consumers, help them retain existing consumers, and ultimately attract millions of consumers. “to the circular economy”.
Unlike buyback systems where the logo receives stock from sellers, processes it, stores it, and eventually sends it to the next buyer, Recurate supports peer-to-peer resale.
Like Poshmark or eBay, as a component of the peer-to-peer style, the dealer lists and ships its parts directly to the buyer. Recurate claims that this style is the maximum scalable for a logo with minimum upfront and continuous pricing and allows distributors to get the most out of their product.
Recurate solves one of the weaknesses of the peer-to-peer model: authentication. It verifies all lists and provides virtual ID authentication. Their team of visitors also handles inquiries and disputes.
But peer-to-peer models offer a key merit to brands: more interaction and engagement with customers. Customers are encouraged to come to the brand not only to make a new acquisition, but also to convey a previous one. This provides a new twist to the classic definition of the circular economy.
“In the logo resale model, there are many opportunities to deepen the connection between the logo and the customer story and create a community,” Griffin told Vogue Business. “This is where we see logo resale being integrated into the broader business that those logos are. “developing. “
To date, Recurate has more than forty-five brands that have subscribed to its service, adding Steve Madden (Re-Booted), Frye (The Frye Exchange), Ministry of Supply (Infinity Resale) and Mara Hoffman (Full Circle Marketplace). the company expects the number to grow to more than a hundred partners by the end of the year.
CEO Siegel sees the Recurate platform as the natural evolution of the resale market, from third-party platforms to logos that participate in the lifecycle of its products. necessarily putting logo loyalty on steroids.
Calling this phase resale 2. 0, he said: “Resale 1. 0 in third-party markets. They did great and showed that there is a genuine market. Now, brands recognize that there is an opportunity. They see their products sold on third-party platforms. and I wonder why we can’t take credit for them?”