Circularity in fashion is making significant progress, with more and more consumers driving the demand for secondhand clothing. By 2027, the global secondhand market is expected to almost double, reaching $350 billion based on ThredUp’s latest resale report. Within this market, the online channel is expected to capture most of this growth, especially in the United States: online resale will grow 21% each year on average over the next five years, driven mostly by Gen Z. And while many platforms are well established, including leader Vestiaire Collective, Depop, or fast-growing European player Vinted, few seem to prioritize overall quality, both in terms of shopping experience and brand image.
This is where Archive comes in. Founded in 2021 by Emily Gittins and Ryan Rowe, the tech company is working hand-in-hand with brands to incorporate resale into their business model and strategy. The tech startup’s main goal is to build enjoyable e-commerce experiences to get shoppers excited about secondhand and make the fashion industry a little more sustainable. The overall ambition is for brands to think about resale as a second business model, rather than just an initiative that ticks the sustainability box.
Brand-Owned Resale As An Attractive Business Model
While many secondhand platforms struggle to reach profitability, it is not said that the same must be true for brand-owned resale programs. This is exactly the message Gittins is trying to convey to the brands Archive works with, encouraging them to think of it as an entirely new viable business opportunity that is positive both for the environment and their company. “We think about how we can help brands launch their own resale platform in a way that would represent a significant revenue stream for them. Some brands have goals to make it 20% of their revenue,” shares Gittins.
How does Archive help make this happen? By designing efficient and flexible technology that supports the development of various types of resale programs (e.g peer-to-peer marketplace or owned archive or past inventory resale platform), the startups adapts to brands’ objectives and current supply chain and facilitates the integration of resale into their operations. While all models can be profitable, Gittins shares that peer-to-peer marketplaces is the easiest and quickest model to launch and integrate, which is an approach many of its partner brands – such as Ba&sh, Sandro and DVF – have taken. Fully flexible to their needs, Archive not only builds resale marketplaces, but can also manage warehouse and inventory operations – including product identification, photography, pricing order fulfilment and handling of returns – as well as in-store take back programs.
This solution enables brands to take back control of their brand equity and customer experience throughout their products’ journey – which now includes secondhand transactions. By bringing secondhand in-house, brands not only have access to valuable customer data, they also have an entire new source of customers available to them, representing a new revenue stream without the need to increase production, the ultimate goal of circular fashion.
Designing Elevated Secondhand Shopping Experiences
Ultimately, the potential of brand-owned resale programs is that it allows businesses to deliver the customer experience they desire while acquiring new customers and building loyalty, two valuable growth drivers. These platforms can become a playing field for brands to experiment and test concepts, such as limited edition archive and sample sale. This proposition has attracted the likes of Oscar De La Renta, a luxury fashion house that released its customized resale program Encore By Oscar De La Renta, becoming one of the first luxury brands to do so. Through its website, it sells exclusive garments authenticated and restored by hand in its atelier, giving customers the ability to purchase rare, beautiful gowns at exclusive prices, while allowing garment owners to sell theirs directly to the brand. Powered by Archive, the website offers an experience as tasteful and enjoyable as one would expect from such an iconic brand, contributing to reinforcing the brand’s high-end credentials.
The ability to offer an elevated e-commerce experience for resale that aligns with a brand’s equity is an attractive prospect, which is increasingly convincing premium fashion brands, including Ulla Johnson. Archive has powered its Preloved platform, which shoppers might mistake for the brand’s main e-commerce website, a testimony to how seamless and premium the shopping experience and interface feel like. As Gittins expresses, “we want to help elevate the buying experience of secondhand”, which is something that is apparent when exploring the different resale platforms Archive has designed. Through its technology and services, the startups is giving brands – luxury, premium or mainstream – a custom-made, frictionless way to navigate the resale market and feel more comfortable in operating within the space.
In addition to signing more brands, the company is currently focused on European expansion as it aims to become a global brand solution, scalable for businesses wherever they operate. Archive is also working on evolving its model to fit every business need: it is currently experimenting with in-store secondhand programs, unlocking omnichannel resale commerce for brands. With competition rising given the clear business need and opportunity, the startup is constantly innovating to deliver the most seamless, elevated shopping experience and convince brands to experiment with resale. Maje, A.L.C. and Pangaia are the latest to jump on board, with many more expected to follow.
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