If a business model has to be successful, it has to evolve along the lines of the current market trend and technology. Right now, the fashion industry, a hotbed for innovation, is looking to capitalise on two trends – sustainability and digitalisation, owing to the economic situation due to the COVID-19 pandemic.
Resale market industry on rise
Talking about sustainability, second-hand fashion has been playing an integral role in reducing the massive carbon footprint of the fashion industry. According to the UN, the fashion industry is the second-biggest consumer of water and is responsible for 8-10 percent of global carbon emissions – more than all international flights and maritime shipping combined.
The second-hand market, especially for clothes, has been on the rise for sometime fuelled by various factors along with the desire to be part of the long-term solution to fashion waste. As per the report, the resale market industry is projected to more than double in size by 2022.
Acquisition
Dozens of startups have already mushroomed to tap into this billion-dollar opportunity in selling pre-owned branded and designer apparel. Headquartered in Vilnius, Lithuania, Vinted is one of the biggest companies in Europe dedicated to second-hand fashion and is Lithuania’s first unicorn. Recently, the online C2C marketplace acquired United Wardrobe, the largest second-hand fashion platform in the Netherlands.