At 7am on Monday, I returned to the drawing board with a cup of freshly brewed coffee. Listed my biggest challenges and obstacles to growing my three-year-old market, StyleTribute, a Southeast Asian pioneer of pre-owned luxury.
On my whiteboard it says:
How do you expand your inventory supply and acquire new sellers?
- How do you reduce operating costs while improving the quality of your product list?
- How do you eliminate the risk of counterfeit products?
After years of working in the industry, I realized that many of StyleTribute’s challenges were caused by retailers operating completely separate from the second-hand segment. There was a moment of “Ahaha”, realizing that connecting these previously isolated channels could eliminate market inefficiencies and regain value to key stakeholders. This was the origin of my latest venture, the innovative resale service, Reflaunt.
Reflaunt serves as a direct link between the second-hand market and the second-hand market. Introduce and engage brands and retailers in the second-hand market by providing personalized resale services. Reflaunt helps retailers enter unknown market segments by removing the burden of upfront investment from both the brand and its customers.
These three issues will not be resolved if each player is working separately. Instead, through collaboration and united efforts, we can work together to eliminate inefficiencies and build a viable and sustainable future for resale. In the past, the shopping experience of buying a product directly and reselling it in a second-hand market has been two completely separate experiences, even though the same customer and the same product are involved. How efficient is this?
Let’s find out.
1. How do you expand your inventory supply and acquire new sellers?
One of the biggest challenges in the market is increasing inventories, and more specifically, attracting the supply of coveted pieces that can be sold at competitive prices. This limits the control that the short- to medium-term supply market can collect, and of course sales depend on this supply. Overall, there is still legitimate friction in turning direct customers into second-hand sellers, and resale trends still require more education as they are more widely adopted.
With 70% of shoppers still buying disposable clothing, the challenge is to unleash value from this idea. Customers often do not consider reselling idle parts due to lack of general awareness of the benefits of second-hand goods, and especially the difficulty of conceptualizing immediate value trade-offs. Reflaunt leverages thousands of resale lists and transactional data analysis to facilitate decision making with instant valuation.
When these two channels are integrated, communication between brands and resale can be streamlined. It provides an opportunity to provide incentives for both markets and encourages and supports resale activities and more thoughtful consumption habits from within. The opportunity to regain value from a beloved item in the resale market provides this incentive to extend the product life of the item. Rather, it makes aggressive choices to pre-select more valuable items.
2. How do you reduce operating costs while improving the quality of your product list?
Depending on the type of second-hand business model, the operation can be very tedious. Often behind the scenes for most resellers, step-by-step instructions include pricing based on several different attributes such as photography, product description, category, brand, age, and condition. .. Whether the marketplace is run by undertaking operations like TheRealReal or leaving it to a user like Poshmark, someone has to do some time-consuming work. Image quality is often degraded in marketplaces where customers can take pictures of their products. This can misrepresent the true quality and value of a product and reduce sales rates.
Reflaunt simplifies the listing process and allows customers to build a seamless journey to create a product list with just a few clicks. With Reflaunt’s collective brand database and unique pricing algorithms, you can improve product descriptions, provide optimal pricing and ensure the best possible payments. By improving the quality of listings and providing accurate price visibility, Reflaunt’s resale services add great value to the market. Finally, our model unleashes the value of the brand and its customers by allowing sellers to be rewarded with the brand’s shopping credits. This allows customers to be more profitable while improving sales and brand customer loyalty.
3. How do you eliminate the risk of counterfeit products?
According to the OECD, counterfeit products occupy an astonishing $ 450 billion market. Certification remains a challenge in the second-hand market and relies heavily on the skills of in-house professionals. On the other hand, the mere existence of this counterfeit market undermines the trust and trust between buyers and sellers. Today, many parts are purchased without proof of authenticity, which causes customers to lose the reliability they need and reduce future resale opportunities.
Reflaunt’s integration allows brands and customers to track purchase data and transaction history. With the brand’s involvement and cooperation in reselling their products, seamless product tracking gives second-hand buyers a safer resale experience. Forgery concerns and opportunities cannot be completely eliminated, but access to supplemental data can reduce the likelihood of forgery. Full integration of these two markets provides clear visibility over the life of the product and increases reliability. Reflaunt’s resale service has already gathered important information to thwart future authenticity claims and will help eliminate further disruption in the future over time.
Reflaunt is my proposed solution to the challenges faced by many in the resale industry. As of 2022, the second-hand market is projected to account for 10% of the total apparel market, and fashion brands and retailers are ready to enter this area. Reflaunt offers a variety of solutions for defining and building a unique, fully integrated resale experience.
Our mission is to build a more collaborative and comprehensive fashion industry with a focus on circularity and sustainability. All players and stakeholders come together to drive radical change. Reflaunt’s resale service is just the first step and there’s still a lot to do. In the meantime, we’ll go back to the whiteboard to plan and rethink this era of exciting fashion innovation.
Second-hand unknown challenges driving Reflaunt’s innovation
Source link Second-hand unknown challenges driving Reflaunt’s innovation