Online apparel resale is now among the fastest growing segments across all retail, estimated to worth $35 billion and growing at 10% annually. Venture investments since 2009 exceed $500 million.
Growth in the resale market is expected to outpace all e-commerce and retail sectors over the next 10 years. While saving and earning money may be a major motivator behind using online resale or consignment, research has uncovered a fundamental shift in consumer sentiment towards 2nd hand apparel, as the theme “discovery” and “recycling” take foothold in modern social conversations around decluttering, sustainability, and eco-conscious living.
The industry has evolved from the traditional Brick and Mortar consignment and resale into an online phenomenon. The release of the New York Times best selling book “The Life Changing Magic of Tidying Up” By Marie Condo in 2014 propelled the entire industry into a brand new era, as consumers start to emphasize on minimalism instead of hoarding.
With many players in the space, success or failure ultimately depends upon delivering products that customers want and making shopping convenient, while working out unit economics that makes sense for the business. Most competitors currently adopt a very similar business model in terms of taking a cash commission for each sale or transaction, even though growth is present, innovation is lacking, and that’s the reason given there are an estimated $900 billion worth of high-end women’s fashion stuck inside America’s closets, only $35 billion are being re-sold.
I get asked all the time how is SilkRoll different than anyone else, are we just another fashion resale business? I confidently respond: no we are not. SilkRoll is creating a new type of guided business to consumer peer community that allows fashion to be shared, enjoyed and rotated between true style mates who maybe living across the country from one another, in the process leaving behind the monetary value that’s traditionally attached to BUY and SELL.
To find out how we are doing this, follow our series: SilkRoll Takes On Fashion to uncover the true value in your closet.