Trove, a specialist in the resale industry, recently published an innovative report titled “Brand Resale Index: Defining The Resale Experience.” This groundbreaking report is the first of its kind to comprehensively analyze the market and assess the adoption of best practices within the resale sector. While highlighting the potential for growth in the resale industry, the report also acknowledges that the sector is still evolving.

The main objective of the Brand Resale Index is to act as an annual benchmark for measuring the industry’s progress towards brand resale. It provides a detailed evaluation of the performance of 40 leading brand resale programs in sectors such as fashion/apparel, outdoor, footwear, and luxury.

Collaborating with OSF Digital, Trove conducted the research for this report. Andy Ruben, the founder of Trove, draws parallels between the current state of re-commerce and the early days of e-commerce. He believes that resale offers a more customer-centric retail model that aligns with increasing expectations for value, experience, and sustainability. Ruben also emphasizes the exponential growth of global resale, which is currently valued at $100 billion and growing five times faster than traditional retail. By 2030, it is projected to represent 23% of all retail and reach a value of $250 billion by 2027.

The Brand Resale Index assesses brands based on 147 criteria related to brand positioning, commerce, trade-in experiences, and their potential contributions to environmental sustainability. An interesting finding is that outdoor brands are viewed as the most advanced in terms of their resale offerings. Trove attributes this to the natural alignment between the resale mission and customer values in the outdoor industry, as well as the durability and higher prices of outdoor products. Fashion/apparel and footwear are the categories that have seen the most growth in resale over the past year, with footwear brands making significant progress in addressing the challenge of selling open-box items.

The report underscores the significance of presentation and user-friendliness in the resale experience. The way brands present secondhand items and integrate them into their existing commerce channels greatly influences customers’ purchasing journey. The report also highlights the lack of integration between new and pre-owned products in the shopping experience, with only 25% of brands allowing customers to combine purchases of new and pre-owned items in the same cart. Seamless trade-in experiences are also identified as crucial in unlocking the value of idle branded items in customers’ closets while simultaneously fostering brand loyalty.

Despite all 40 brands included in the index claiming to prioritize sustainability, the report suggests that not all resale programs effectively contribute to sustainability. Trove warns that brand resale programs primarily reliant on incentives for purchasing new products pose a risk for brands aiming to establish a strong sustainable image.

In conclusion, the Brand Resale Index by Trove sheds light on the significant growth potential of the resale sector while emphasizing the need for further progress. The report provides valuable insights into the current state of brand resale and offers recommendations for brands to enhance their resale programs and contribute to environmental sustainability.

Useful Links:
1. Trove
2. OSF Digital