Measuring the State of Circularity in the UK Fashion Industry
Part 2
Executive Summary
27
Introduction
Part 3
Conclusion
Part 1
Resale: preloved profits Selling pre-owned fashion items to new consumers. Includes organisation’s own re-sale platforms or use of other platforms or marketplaces to enable individuals to buy and sell used apparel.
Barriers to growth
Difficulty communicating initiatives to customers
Cannibalisation of existing sales Resale of second-hand clothes at lower ASPs is in direct competition to full priced sales. Some organisations are disincentivised to set- up or scale-up resale platforms due to this. 3
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From B2C ‘vintage’ platforms to C2C resale platforms, different communication styles are required, but all involve a constant marketing push to gain traction, with the pay-off of customer usage still being a challenge.
Operational or logistical complexity
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Limited margin Second-hand clothing typically offers a lower profit margin than new products due to lower Average Sale Price (ASPs) and additional operational and logistics costs – this limits feasibility for B2C initiatives for certain categories and value segments. 2
Different resale platforms have different operational and logistical implications. However, at a minimum, customer communication and customer touchpoints are required.
Credit: Huishan Zhang
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