Business
Big Fashion Brands Try on a New Trend: Selling Secondhand Clothes — WSJ
Big Fashion Brands Try on a New Trend: Selling Secondhand Clothes — WSJ
About this update from Reformation Inc.
By Clara HudsonIf you walk beyond the winding rows of color-coordinated clothing at H&M's SoHo store, you'll find an eclectic trove of what the retailer calls its "preloved" items, from a Jimmy Buffett T-shirt — featuring a cartoon parrot asking "where's the party?" — to a sleek Moschino top for $250.The move to set up a kind of mini vintage store featuring a mishmash of garments is a stark contrast from the Swedish apparel giant's typical offerings. But it demonstrates the mounting interest the industry is showing in secondhand clothing, as fashion reckons with pressure to lower its environmental impact."It might be surprising to some customers to maybe come in for socks for the kids and stumble upon 'preloved,'" said Sofia Måhlén, team lead of circular business models at H&M. "I'd be very happy in my role if I can convert some shoppers to secondhand."More big retailers have been integrating secondhand clothes into their stores, partly for sustainability, but also to garner attention. Banana Republic recently launched its own limited edition drops featuring pieces from the 1970s, '80s and '90s. Reformation, a top retailer with roots in upcycling vintage items, has expanded its "preloved" section, where it sells garb from brands including Prada and Bebe alongside its own styles. Reformation, which went public last week, says on its website that "being naked is the #1 most sustainable option. We're #2."Adopting a secondhand section has a lot of selling points, and is much simpler than scaling a sustainable apparel line: The inventory can be low-cost or even free to collect; the brand gets to capitalize on a less environmentally harmful product; and the buzz around pop-ups, fueled by the lure of one-of-a-kind items, brings in new shoppers. H&M has worked with a small secondhand store, Awoke Vintage, for its preloved section in SoHo, but some big retailers are sourcing the preloved pieces themselves or have customers hand them in — sometimes for store credit.H&M has set up about a dozen secondhand pop-ups in the past few years, adding preloved sections in Stockholm and Vienna in recent months. "The expansion has been quite steady," Måhlén said."A lot of this is about the customer, but it's also good business sense, " she said, adding the resale market is growing faster than conventional retail. H&M is banking on that with its investment in secondhand Swedish...