Consumer shopping trends are changing, with first movers like The RealReal, ThreadUP and Rent the Runway proving that there is significant interest among shoppers to buy used, rent, and sell their clothes.

Consumer Platforms

These new models provide a solution to the insatiable demand of many shoppers to have an ever-changing wardrobe, by reducing the friction around getting rid of items once they’re no longer interested in wearing them. This is a big shift, analogous to a move from owning albums to streaming playlists.

But why does this matter for sustainability? Because both “throw-away fashion” and “shopping therapy” can lead to buying far more clothing than one ever truly needs or could wear, leaving a vast number of garments underutilized in closets or ending up in landfills. Because of the resources it takes to make and recycle clothing, use of each garment is particularly important when addressing sustainability.

All that to say, we are excited to see new models popping up that are meeting consumers’ preferences and shopping habits, while allowing clothes to be worn by many people, many times.

Consumer shopping trends are changing with first movers - like The RealReal, ThreadUP and Rent the Runway - proving that there’s a significant interest among shoppers to buy used, rent, and sell their clothes.

As first-movers, The RealReal (REAL) and Rent the Runway (valued at $1bn Q1 2019) have experienced some turbulence recently on the back of operational hiccups and market moves, and we believe there is room for others to move into the broader space.

The B2B Angle

Established brands are also looking for ways to break into rental and resale, while still owning their customer experience. Eileen Fisher’s Renew and Patagonia’s Worn Wear have been at this for a while and even go as far as repairing and redesigning garments from old clothes.

We are now seeing more and more brands join this space. Some are partnering with startups that provide end-to-end solutions allowing them to offer rental or resale platforms, including The North Face, Ann Taylor, Banana Republic, Vince, & American Eagle. And URBN (Urban Outfitters, Anthropologie, Free People) has just launched their own rental service, nuuly.

We are big fans of this shift and are very impressed by the industry’s adoption of these new business models. We are very excited about the savvy entrepreneurs we meet who are providing brands and shoppers easy ways to buy, wear, and sell clothes in a more sustainable way.