Monday, May 20, 2024

The Resale Boom Continues With Rebag’s Membership Program and TikTok’s Expanded Secondhand Luxury

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Consumers have gone all-in on the secondhand market and platforms are now looking for new ways to attract those shoppers. Enter: Rebag+ and TikTok Shop’s secondhand section expanding to the U.K.

With the resale market showing no signs of slowing down, Rebag ups the ante with a benefit-heavy membership program aimed at creating consumer loyalty and repeat spending. TikTok is also propelling the trend forward with the expansion of its secondhand luxury section on TikTop Shop across the U.K.

In its 12th annual resale report released last month, secondhand giant ThredUp revealed that resale grew 15 times faster than retail in 2023. Globally, secondhand sales reached nearly $50 billion last year and the hashtag #secondhandfashion has amassed more than 1.2 billion views on TikTok.

Secondhand fashion on phone.
Secondhand selling online is booming. | Courtesy

Still, the online resale market doesn’t compare to conventional retail just yet. But brands are excited by the potential. More than 150 major labels now have branded online resale offerings, which is up from just nine in 2020. Experts predict that by 2030, online resale will represent at least ten percent of revenues for retail giants including Gucci, Lululemon, Balenciaga, and Free People.

Rebag+

As it explores new ways to fortify its customer relationshipships, New York-based secondhand bag seller Rebag has launched its first membership program. Rebag+, aims to significantly enhance customer purchasing power in the luxury handbag resale market. The initiative promises members as much as a 27 percent increase in purchasing power, offering a slew of benefits designed to maximize the value of their investments in high-end accessories.

Under the new program, members enjoy a ten percent discount on all items, early access to new arrivals, free shipping and returns, and improved seller offers of up to five percent. “Our customers are always asking for different ways where they can get the best value out of their purchases,” Elizabeth Layne, Rebag’s Chief Marketing Officer, said in a statement. “We definitely play on the high end of the market with all of our luxury items on our site, but people still want a good value and this is the way where we can offer that to them. We can give them better pricing and give them a way as long as they’re staying within the Rebag ecosystem to grow their value of the Rebag wallet to be able to purchase more.”

Rebag store.
Rebag store | Courtesy

To participate, customers must contribute a minimum of $50 monthly or $500 annually, which is then fully converted into Rebag+ credit. In addition, Rebag contributes a two percent bonus to each member’s credit, further increasing their effective purchasing capacity.

Layne further highlighted the strategic aims of the membership program: “The main goal is we’re looking for ways to reward our customers,” she explained. “This will help drive [the] repeat rate over time. I imagine more people staying within the Rebag ecosystem both on the buying side and selling side, making their future luxury purchases within Rebag.”

Last November, Rebag and ThredUp announced a collaboration that allows ThredUp customers to earn Rebag credits by selling their items on the resale marketplace, one of a number of resale collaborations as the secondhand market continues to gain momentum.

TikTok Shop goes secondhand

TikTok Shop is expanding its reach into the U.K. market with a new secondhand luxury category, putting it head-to-head with industry giants The RealReal and Vestiaire Collective. This launch marks the platform’s ongoing push into pre-owned luxury goods, a market that already features prominently in its U.S. operations.

TIktok on a phone.
Photo courtesy Kajetan Sumila

In the U.K., TikTok Shop users can now buy authenticated high-end pre-owned clothing, designer handbags, and other accessories directly through the app. At its outset, the category will feature items from five U.K. brands: Sellier, Luxe Collective, Sign of the Times, HardlyEverWornIt, and Break Archive. These labels are recognized for their robust in-house authentication processes, ensuring that all items are genuine.

While the platform stresses a strict authentication process, TikTok Shop has faced criticism, despite sales surpassing $1 billion since its 2022 launch. Concerns have been raised about the prevalence of counterfeit and low-quality products, which some argue undermines the app’s primary function as a platform for short-form video sharing. However, the company maintains a policy that offers full refunds for any counterfeit purchases, underscoring its commitment to authenticity.

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