Fast Track: Brands Look to Capture the Value of Their Own Waste

Sportswear brands are starting to recognise the value of the clothing resale market and, more importantly, the value of directly controlling part of it themselves. According to the resale platform thredUp, the market for second-hand clothing is expected to more than double between 2021 and 2025 and, within this market, sales generated through resale platforms are expected to surge by 213%. The growth in the market for second-hand clothing stems mainly from the fact that consumers are increasingly prioritising sustainability, retailers are starting to embrace resale, and policy makers are beginning to promote the adoption of a circular economy. In the EU, for example, separate collections of waste clothing will become mandatory by 2025. Additionally, there will be a strengthening of extended producer responsibility (EPR) across the EU which will focus on resource-intensive sectors such as textiles. Meanwhile, resale companies such as thredUp, Sole Responsibility and The Renewal Workshop are benefiting from the increased awareness of resale and have forged partnerships with leading clothing retailers and brands-including Champion, JCPenney, JD Sports, Macy’s, New Balance and Walmart-in order to redistribute used items, sub-prime items, returned items and seconds items. At the same time, a number of clothing brands have set up their own resale platforms.