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used gear
Patagonia's Worn Wear program is a leader in the rapidly expanding used-gear market.
国产吃瓜黑料 Business Journal

Trend Report: More Brands Getting into the Used-Gear Game

Outdoor brands are building new retail channels through the sale of used gear

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used gear

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The next time you go to buy a new piece of gear from a brand or retailer online, there鈥檚 an outside chance you鈥檒l be offered a gently used version as an alternative. You can thank the recent explosion of the used-gear marketplace for that.

According to research from online resale platform ThredUp, the pre-owned outdoor gear market is projected to balloon to roughly $75 billion by 2025鈥攁n eye-popping figure for a trend still young in the industry. Historically, only a select few brands offered used products for sale through their traditional channels. In recent years, though, that tide has started to turn.

鈥淚t鈥檚 an incredible value proposition for those that can do it,鈥 said Dylan Carden, consumer analyst at William Blair, a Chicago-based financial services firm. 鈥淭his is moving at breakneck speed and it鈥檚 a way for companies to circumvent a disrupted supply chain.鈥

Whether you call it 鈥渞esale,鈥 鈥渞ecommerce,鈥 or 鈥渦sed gear,鈥 the idea is the same. Selling used gear serves the dual goals of keeping product out of the landfill and capturing business from customers seeking second-hand goods at a discount. Third-party companies like eBay and Poshmark have long provided a home for this type of commerce, but now outdoor brands are increasingly taking control of the process.

Jumping on the Used-Gear Bandwagon

The basics of brand-controlled used gear sales are fairly straightforward. Companies either work through a service platform like Trove, which helps brands sort, repair, and resell products, or they use peer-to-peer (P2P) software like Recurate, which integrates into their online stores. P2P software provides the functionality for a consumer-driven marketplace, where customers list and sell their own gear, with brands taking a percentage of each sale.

鈥淭he evolution [of recommerce] is so hard to quantify,鈥 said Asha Agrawal, managing director of corporate development at Patagonia, whose role includes overseeing the brand鈥檚 Worn Wear recommerce business. According to Agrawal, hunting for used gear has 鈥渆merged as a favored way to buy among certain cohorts of customers,鈥 a trend that confirms consumers don鈥檛 always need shiny, new things. 鈥淭hey often prefer the value and the stories from used [gear],鈥 Agrawal said.

The recommerce game in the outdoor industry looks different depending on the company, its products, and its scale. The big names with lots of inventory (and customer returns) can use a service like Trove to get deadstock and archival items into the resale marketplace quickly. Smaller or more niche brands that don鈥檛 have as much product on hand may fare better with P2P services like Recurate, where customers essentially run the marketplace.

“Our demand [for used gear] is far outstripping our supply,” said Peak Design founder and CEO Peter Dering, whose company used Recurate to build its new Peak Design Marketplace, a space for customers to buy and sell used Peak Design gear directly within the brand’s website.

Peak Design is a prime example of a niche brand that benefits from a dedicated customer base and thrives in a specialty online marketplace. According to a 2020 survey the brand circulated among its online customers, 27 percent of Peak Design shoppers own ten or more of the company’s products, and half of its customers were already buying and selling used gear online before the Peak Design Marketplace was up and running.

On the other end of the spectrum, large multibrand marketplaces target the masses, from casual shoppers to brand-dedicated diehards. REI鈥檚 Good and Used, which launched in 2018 with Trove handling some of the technical aspects of gear resale, is one such marketplace. Last June, both Cotopaxi and NEMO Equipment announced resale partnerships with the platform, which helped those brands achieve a quick entry into the space.

Wooing New Customers

Ken Voeller, REI鈥檚 director of circular commerce and new business development, says that beyond keeping existing outdoor gear in use longer, resale provides important avenues for customer acquisition and retention. 鈥淚n 2021, we sold north of a million used units,鈥 he said. 鈥淭hat鈥檚 up significantly from 2019 [the last year of 鈥榥ormal鈥 sales before the pandemic hit]. It lowers the barrier to entry to getting outside, and we see our trade-in offering as a way [for customers] to stay engaged with REI.鈥

This cost consideration is potentially transformative for higher-end brands like Arc鈥檛eryx, whose steep pricing is often a challenge for new-customer acquisition. Used gear lowers that barrier and is already proving successful with customer conversion, according to Arc鈥檛eryx VP of Recommerce Dominique Showers. 鈥淲e are seeing tremendous engagement from a younger audience looking to enter into the outdoor activities we design for,鈥 she said.

And it鈥檚 not all online. Arc鈥檛eryx and Patagonia are both making efforts to bring used-gear sales into brick-and-mortar retail spaces. Arc鈥檛eryx recently opened its first ReBird store in New York City, which has a dedicated section for repairs and recommerce. Patagonia has integrated Worn Wear into various retail concepts鈥攊ncluding two full-floor takeovers at stores in Brooklyn and Denver for the 2021 holiday season.

The Climate Angle

Environmental impact is another oft-touted benefit of used-gear resale鈥攁nd those claims aren鈥檛 hot air.

鈥淭he bulk of Patagonia鈥檚 emissions鈥95 percent鈥攃ome from the supply chain, and most of that is material manufacturing,鈥 Agrawal said. 鈥淭hrough our Worn Wear program, we鈥檒l continue to offer customers clothes with 60 percent lower emissions than new.鈥

NEMO Global Distribution and Sustainability Manager Theresa Conn says that the company鈥檚 recent lifecycle assessment found that more than 80 percent of associated carbon impacts for a tent occurred before the product left the factory. 鈥淎s the bulk of the greenhouse gas emissions are tied up in the product itself,鈥 she said, 鈥渙ur goal is to keep products in circulation for as long as possible.鈥

Of course, this doesn鈥檛 take into account the bigger dilemma of developing an economically viable way for outdoor brands to produce less in the first place, which would prevent more emissions at their source. But building channels to keep gear circulating in the wild longer is definitely a step in the right direction.

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