Urban Outfitters Inc. will launch a second-hand product market, which wants to turn its customers into sellers and prevent them from turning to online resellers like Poshmark Inc. and thredUP Inc.
The company’s Nuuly Thrift, which will launch as an iPhone app this fall, will join a growing list of peer-to-peer services from retail chains. Companies have to charge commissions for resale while running the risk of cannibalizing sales of new merchandise.
“Our job is to grow,” said David Hayne, president of Nuuly and chief technology officer of Urban Outfitters. “From the point of view of the trend, we know that if we do not provide the platform, it will not prevent sellers from selling on other platforms. These second-hand experiences are happening whether we are playing or not ”.
Lululemon Athletica Inc., Levi Strauss & Co. and Macy’s Inc. they have expanded into the second-hand market, which has become a popular alternative to fast fashion among younger consumers. Approximately 42% of Gen Z buyers bought second-hand fashion by 2020, according to GlobalData PLC, which prepared the research for thredUP.
The online clothing rental service Rent the Runway, which confidentially requested an initial public offering in July, expanded its push toward second-hand clothing last year after surviving a drop in revenue , as the coronavirus pandemic kept people out of work and special events.