FW
A new generation of consumers in post-pandemic times is making it easy to buy and sell second-hand apparel, shoes, and accessories on a variety of online resale platforms. Buyers can browse through a versatile portfolio of premium and luxury brands. Analysts say one in every three apparel items bought globally in the last year has been second- online resale platforms hand with 37 per cent consumers spending their limited budget in the pre-loved segment as inflation rises.
The resale and pre-loved branded goods market is a quick growing one with many retailers adding this segment to sustain their core business. There is now a rising tide of retailers and brands that want to understand how to develop a retail strategy that includes second-hand and creating a brand USP that is profitable to both the customer and the company.
Report predicts global market growth
Many online resale platforms for apparel, shoes, and accessories are doing very well in the sale of second-hand apparel as consumers gravitate towards this segment amid economic uncertainty. Online thrift marketplace ThredUp- one of the largest online resale platforms –recently revealed its 2023 resale report which predicts by 2027, global resale market will reach $350 billion, with the US market growing to $70 billion.
Apparel retailers are now accelerating their pre-loved resale marketing strategies and last year, around 88 brands launched resale programs with many partnering with ThredUp’s Resale As A Service or RaaS. In post-Covid times, two out of three retailers who offer resale, feel it is an intrinsic part of their long-term growth strategy and overall profit figures.
Anthony Marino, President, ThredUp in an interview to Forbes said: “Consumers search for value in a crisis. Consumers bought 1.4 billion pieces of secondhand apparel items instead of new last year. That’s a 40 per cent increase from the year before. People in their minds, are connecting the purchase of the secondhand item, and are acknowledging that it impacts the environment. 2022 was a year when retailers were struggling and we noticed that they needed a strategy for resale.”
According to ThreadUp, growing demand has propelled the second-hand industry for apparel, shoes and accessories to $177 billion in global sales last year, a 28 per cent increase over 2021. This is mainly due to surging inflation and more retailers who are curating resale and pre-loved offerings along with an increased awareness of sustainable shopping habits. The ThredUp 2023 report, which relies on research and data from third-party retail analytics firm GlobalData, has predicts the second-hand industry will double to $351 billion in global sales by 2027.
As per Marino, Threadup’s Fashion Footprint Calculator asks a couple of questions to find out if one is a net polluter or not. Without preaching, it offers information and shows you how to improve by buying a few more products that are secondhand rather than new.
Selling second-hand items online stores are an attraction for those looking for branded clothes but have budget constraints. Chinese retailer, Shein, which focuses on a fast fashion model, entered resale space last year with Shein Exchange site. Likewise, H&M launched an online resale platform with ThredUp and H&M’s recent annual reports have said it expects climate-aware consumers to buy more sustainable products in the future which indicates a potential shift in consumer preferences in post-Covid times.
With the Gen Z most attracted to resale and larger fashion companies looking to reduce their greenhouse gas emissions and water and plastic footprints, the rise of secondhand and other circular business models is on the way up and up in the turbulent days of global inflation ahead.
Endeavoring to spread greater consciousness about denim’s worth and to maintain the creativity surrounding the beloved blues, Murianni Cristian started Denim Instituto Milano.
The aim of the institute is to train new generations of professionals in the denim sector, by developing courses around craftsmanship and tradition. It’s an education for tomorrow’s denim leaders, and one Murianni personally believes in.
The Denim Institute Milano addresses new generations and not only that, its goal is to overturn the tendency of diminishing fabrics’ value and to enhance its Italian origins.
Endeavoring to spread greater consciousness about denim’s worth and to maintain the creativity surrounding the beloved blues, Murianni Cristian started Denim Instituto Milano.
The aim of the institute is to train new generations of professionals in the denim sector, by developing courses around craftsmanship and tradition. It’s an education for tomorrow’s denim leaders, and one Murianni personally believes in.
The Denim Institute Milano addresses new generations and not only that, its goal is to overturn the tendency of diminishing fabrics’ value and to enhance its Italian origins.
The world of textile and readymade garment manufacturing continues their collective rollercoaster ride of ups and downs indicate various analyses, reports and experts’ statements. The international financial projections have added to the confusion on the state of economies worldwide which saw international cotton prices spiral downwards. In this milieu, Indian cotton grower has been showered with good news that the product is holding its ground and a fortnight ago a candy of Indian spot cotton was selling for Rs 63,300 and a candy of the S-6 2 variant at Rs 62,150. This begets the question what is prompting this trend that bucks the international one?
Market delivery lowered
Reports have confirmed that raw cotton being delivered to local market in India is significantly lower this year compared to the previous years. Weekly arrivals were only about 55 kt in the last few weeks and by April 9, 2023, the cumulative delivery of domestic cotton was 3.068 million tonnes, a significant shortfall as per the prediction of 5.32 million tonnes as was assessed by the Cotton Association of India. The body also reported that as early as February 2023, delivery totaled 2.632 million tons, a deficit of 32 per cent. The continuous delivery shortfall is organically increasing price.
India’s manufacturing sector contributes to hike
The local textile industry is seeing a surge of positivity as the Indian government’s expansion plan in this sector is about to take off. In this context, the overall domestic manufacturing sector has held fort against the global downturn and is carrying on well as per World Bank’s report commending the growth of Indian manufacturing and exports.
As one of the main sectors within India’s manufacturing industry, textile production has been resilient despite sluggish global growth, one of the reasons being a robust domestic demand. It should be noted that India’s Manufacturing Purchase Index (PMI) rose by 1.1 per cent and as of January 2023 stood at 55. 4 points, signaling steady growth. In comparison, the world’s largest economy, the US is at a PMI of 47.70 currently.
Vibrant downstream demand triggers up-pricing
From the very first week of fiscal year 2023-24, downstream industry for cotton has regained activity. In South India, cotton yarn transactions started increasing and cotton yarn prices in Mumbai’s market gained 2-3 pounds per kilo. It is said that the local spinning wheels are getting busier although the cotton inventory this year is lower than last year. Orders from lockdown-free China, post-earthquake Turkey and coming to terms with its new economic reality Europe have increased, leading to escalating prices for a commodity in short supply.
Globally, cotton of Indian provenance has taken an upward turn in demand. India’s cotton-yarn spinners are the secondary beneficiaries as well as the projection is a 100-basis point improvement in operating profitability to 12 per cent in fiscal year 2023-24 despite a 10 per cent on year fall in revenue due to lowered realisations and sluggish exports, based on CRISIL ratings.
Indian government’s initiatives
The Indian government continues to introduce policies that are conducive to downstream capacity expansion which is what makes the Indian textile industry’s commercial outlook upbeat. The acclaimed seven gigantic textile parks in the country are in their advanced stage of readiness, fuelling a lot of hope for both the domestic and exports markets. The key components of these governmental policies are reduced import tariffs on certain textile machinery, spare parts and accessories, including shuttle-less looms in the category of zero tariffs.
Luxury goods giant LVMH has made history by becoming the first European company to exceed $500 billion in market value. The Paris-based firm, which owns Louis Vuitton, Moët & Chandon and Hennessy, as well as Givenchy, Bulgari, and Sephora stores, reported an impressive 17% rise in first-quarter sales in April, beating analyst expectations.
The company's shares hit a record high, rising by 32.8% in the year to date, after the results were announced.
LVMH's revenue for 2022 was 79.2 billion euros ($87.1 billion), with profit from recurring operations of 21.1 billion euros, marking its second consecutive year of record results. The luxury giant expects to benefit from China's Covid reopening, as the return of travel brings back high-end spenders. The anticipated rebound in Chinese consumer spending has also boosted the share prices of other luxury groups, including Richemont, Kering, and Burberry.
LVMH's CEO, Bernard Arnault, is currently the world's richest person, according to the Forbes real-time billionaires index.
In 2021, the company completed the acquisition of U.S. jeweler Tiffany & Co for $15.8 billion. This landmark achievement reaffirms LVMH's position as a dominant force in the luxury industry.
Pakistan’s lack of diversity in exports, inadequate infrastructure, and low productivity are hindering its competitiveness in the global market.
These factors make the country more susceptible to external shocks and reduce its ability to generate foreign currency and employment. The challenges facing Pakistan's export sector include inadequate infrastructure, unfavorable trade policies, limited access to finance, and a lack of skilled workers.
However, Pakistan has a number of opportunities to increase its export competitiveness, including regional integration, developing markets, policy reforms, and human capital development.
The implementation of policy initiatives such as infrastructure improvements, trade policy liberalization, access to financing, and skill development can help Pakistan improve its export competitiveness, generate foreign currency, and create job opportunities.
Pakistan must also study the international markets and their demands to enhance its export competitiveness.
Chinese e-commerce giant Alibaba Group Holding has launched a new luxury platform called Soho that targets younger consumers and also aims to help high-end brands shed excess inventory built up during the global coronavirus lockdown. The platform will allow brands to run their own online stores with full control over their pricing, product selection and strategy. It would be home to “luxury deals, older collections, timeless classics and vintage collectibles”.
The platform would help high-end houses reach newer consumers such as those from China’s lower-tier cities or so-called Gen Z shoppers, young clients up to the age of 25 who are just entering the world of luxury and are expected to become increasingly important for the sector.
Chinese shoppers account for more than a third of global luxury goods spending and China was the first key market to be hit by the coronavirus pandemic, which forced brands to shut stores and led to a virtual halt in international travelling.
Gap Inc. is preparing to reopen 800 of its apparel shops by the end of May, as states such as Texas and South Carolina slowly begin to lift lockdown restrictions that were put in place due to the coronavirus pandemic.
The San Francisco-headquartered company, which owns Banana Republic, Old Navy and Athleta, joins a growing list of retailers including Macy’s, Nordstrom, Abercrombie & Fitch and Chico’s — that are taking steps to get back to business.
On April 23, the company warned investors it might not have enough cash to sufficiently fund operations, with its shops temporarily shut to try to help curb the spread of Covid-19. A day later, Gap issued $2.25 billion of new secured bonds to help it repay existing debt. At the end of March, Gap drew down its entire $500 million credit line and said it was suspending dividend payments.
Looking for ways to cut costs, Gap also stopped paying rent to its landlords, with monthly rent expenses amounting to roughly $115 million in North America. Only about 20 per cent of Gap Inc.’s revenue comes from indoor shopping malls, she went on to say. Gap’s net sales totaled $16.4 billion in fiscal 2019.
Mall-based retailers, including apparel companies and department stores, have been some of the hardest hit during the pandemic that has kept families holed up at home. Even as lockdown restrictions lift, analysts say malls could be one of the venues consumers look to avoid, longer term, because of their enclosed nature. Nordstrom said Tuesday evening that it plans to permanently shut 16 of its department stores, after assessing the market.
The biggest U.S. mall owner, Simon Property Group, notably has 412 Gap stores, including Banana Republic and Old Navy, at its malls and outlet centers. This makes Gap Simon’s biggest in-line tenant at its properties in terms of rent. Simon started opening some of its malls in the South last Friday.
“We feel confident that our online composition and street, strip, outlet and lifestyle [outdoor] malls give us an advantage,” Syngal said about Gap’s positioning away from enclosed malls. “That is exciting for us.”
As Gap reopens its doors to customers again, the changes will be noticeable. And it is unclear how long some of them will be in place. Some could become permanent.
Among them: Gap will be placing plexiglass dividers at registers to protect workers from shoppers. It will place signs in stores encouraging customers to wear face coverings and to follow social distancing protocols. Restrooms and fitting rooms will be temporarily closed. Hand sanitizer will be positioned at store entrances, and store hours will be reduced for the foreseeable future.
Gap will also be holding any returned merchandise for 24 hours before placing it back on the sales floor, a practice Syngal said the retailer agreed upon based on conversations with industry peers and the trade group Retail Industry Leaders Association. It remains unclear how long the Covid-19 virus lingers on materials such as clothing.
Gap operated 3,345 stores globally, with an additional 574 franchise locations, as of Feb 1. To meet online demand and to try to utilize inventory sitting in dark stores, the company currently is fulfilling and shipping online orders from 1,000 locations. And it has curbside pickup available at 75 shops.
Gap plans to double the number of locations where it is shipping from the store, as well as add additional curbside pickup options, according to Syngal. “When Covid hit, we saw a meaningful acceleration in our online performance.”
When it warned about its financial situation last month, Gap also said it is possible that some of its stores never reopen. Syngal, who became CEO effective March 23 after leading the Old Navy brand, said the retailer is still thoughtfully evaluating its real estate.
Gap shares have fallen more than 58 per cent this year. The retailer has a market cap of $2.7 billion.
Gap Inc. is preparing to reopen 800 of its apparel shops by the end of May, as states such as Texas and South Carolina slowly begin to lift lockdown restrictions that were put in place due to the coronavirus pandemic.
The San Francisco-headquartered company, which owns Banana Republic, Old Navy and Athleta, joins a growing list of retailers including Macy’s, Nordstrom, Abercrombie & Fitch and Chico’s — that are taking steps to get back to business.
On April 23, the company warned investors it might not have enough cash to sufficiently fund operations, with its shops temporarily shut to try to help curb the spread of Covid-19. A day later, Gap issued $2.25 billion of new secured bonds to help it repay existing debt. At the end of March, Gap drew down its entire $500 million credit line and said it was suspending dividend payments.
Looking for ways to cut costs, Gap also stopped paying rent to its landlords, with monthly rent expenses amounting to roughly $115 million in North America. Only about 20 per cent of Gap Inc.’s revenue comes from indoor shopping malls, she went on to say. Gap’s net sales totaled $16.4 billion in fiscal 2019.
Mall-based retailers, including apparel companies and department stores, have been some of the hardest hit during the pandemic that has kept families holed up at home. Even as lockdown restrictions lift, analysts say malls could be one of the venues consumers look to avoid, longer term, because of their enclosed nature. Nordstrom said Tuesday evening that it plans to permanently shut 16 of its department stores, after assessing the market.
The biggest U.S. mall owner, Simon Property Group, notably has 412 Gap stores, including Banana Republic and Old Navy, at its malls and outlet centers. This makes Gap Simon’s biggest in-line tenant at its properties in terms of rent. Simon started opening some of its malls in the South last Friday.
“We feel confident that our online composition and street, strip, outlet and lifestyle [outdoor] malls give us an advantage,” Syngal said about Gap’s positioning away from enclosed malls. “That is exciting for us.”
As Gap reopens its doors to customers again, the changes will be noticeable. And it is unclear how long some of them will be in place. Some could become permanent.
Among them: Gap will be placing plexiglass dividers at registers to protect workers from shoppers. It will place signs in stores encouraging customers to wear face coverings and to follow social distancing protocols. Restrooms and fitting rooms will be temporarily closed. Hand sanitizer will be positioned at store entrances, and store hours will be reduced for the foreseeable future.
Gap will also be holding any returned merchandise for 24 hours before placing it back on the sales floor, a practice Syngal said the retailer agreed upon based on conversations with industry peers and the trade group Retail Industry Leaders Association. It remains unclear how long the Covid-19 virus lingers on materials such as clothing.
Gap operated 3,345 stores globally, with an additional 574 franchise locations, as of Feb 1. To meet online demand and to try to utilize inventory sitting in dark stores, the company currently is fulfilling and shipping online orders from 1,000 locations. And it has curbside pickup available at 75 shops.
Gap plans to double the number of locations where it is shipping from the store, as well as add additional curbside pickup options, according to Syngal. “When Covid hit, we saw a meaningful acceleration in our online performance.”
When it warned about its financial situation last month, Gap also said it is possible that some of its stores never reopen. Syngal, who became CEO effective March 23 after leading the Old Navy brand, said the retailer is still thoughtfully evaluating its real estate.
Gap shares have fallen more than 58 per cent this year. The retailer has a market cap of $2.7 billion.
Gap Inc. is preparing to reopen 800 of its apparel shops by the end of May, as states such as Texas and South Carolina slowly begin to lift lockdown restrictions that were put in place due to the coronavirus pandemic.
The San Francisco-headquartered company, which owns Banana Republic, Old Navy and Athleta, joins a growing list of retailers including Macy’s, Nordstrom, Abercrombie & Fitch and Chico’s — that are taking steps to get back to business.
On April 23, the company warned investors it might not have enough cash to sufficiently fund operations, with its shops temporarily shut to try to help curb the spread of Covid-19. A day later, Gap issued $2.25 billion of new secured bonds to help it repay existing debt. At the end of March, Gap drew down its entire $500 million credit line and said it was suspending dividend payments.
Looking for ways to cut costs, Gap also stopped paying rent to its landlords, with monthly rent expenses amounting to roughly $115 million in North America. Only about 20 per cent of Gap Inc.’s revenue comes from indoor shopping malls, she went on to say. Gap’s net sales totaled $16.4 billion in fiscal 2019.
Mall-based retailers, including apparel companies and department stores, have been some of the hardest hit during the pandemic that has kept families holed up at home. Even as lockdown restrictions lift, analysts say malls could be one of the venues consumers look to avoid, longer term, because of their enclosed nature. Nordstrom said Tuesday evening that it plans to permanently shut 16 of its department stores, after assessing the market.
The biggest U.S. mall owner, Simon Property Group, notably has 412 Gap stores, including Banana Republic and Old Navy, at its malls and outlet centers. This makes Gap Simon’s biggest in-line tenant at its properties in terms of rent. Simon started opening some of its malls in the South last Friday.
“We feel confident that our online composition and street, strip, outlet and lifestyle [outdoor] malls give us an advantage,” Syngal said about Gap’s positioning away from enclosed malls. “That is exciting for us.”
As Gap reopens its doors to customers again, the changes will be noticeable. And it is unclear how long some of them will be in place. Some could become permanent.
Among them: Gap will be placing plexiglass dividers at registers to protect workers from shoppers. It will place signs in stores encouraging customers to wear face coverings and to follow social distancing protocols. Restrooms and fitting rooms will be temporarily closed. Hand sanitizer will be positioned at store entrances, and store hours will be reduced for the foreseeable future.
Gap will also be holding any returned merchandise for 24 hours before placing it back on the sales floor, a practice Syngal said the retailer agreed upon based on conversations with industry peers and the trade group Retail Industry Leaders Association. It remains unclear how long the Covid-19 virus lingers on materials such as clothing.
Gap operated 3,345 stores globally, with an additional 574 franchise locations, as of Feb 1. To meet online demand and to try to utilize inventory sitting in dark stores, the company currently is fulfilling and shipping online orders from 1,000 locations. And it has curbside pickup available at 75 shops.
Gap plans to double the number of locations where it is shipping from the store, as well as add additional curbside pickup options, according to Syngal. “When Covid hit, we saw a meaningful acceleration in our online performance.”
When it warned about its financial situation last month, Gap also said it is possible that some of its stores never reopen. Syngal, who became CEO effective March 23 after leading the Old Navy brand, said the retailer is still thoughtfully evaluating its real estate.
Gap shares have fallen more than 58 per cent this year. The retailer has a market cap of $2.7 billion.
