Fashion companies are rolling out resale platforms for secondhand clothing from their own brands one after another. The path of clothes that until now were traded on secondhand transaction platforms like karrot or thrown into clothing recycling boxes is changing.
According to the retail industry on the 2nd, the Kolon Industries FnC institutional sector expanded the brands it buys for its secondhand clothing platform OLO Relay Market last month. Until now, it had only handled buybacks of its own brands such as Kolon Sports, Lucky Chouette, and RE;CODE, but it now buys about 160 outside brands as well.
If you submit a buyback request to OLO Relay Market, the retrieved items are resold after washing, minor repairs, and grading. Prices are set at 60%–80% of new items. Clothing in good condition receives higher compensation. Compensation is paid as OLO Points that can be used on Kolon Mall.
LF Corp. has been running L RE:Market, which repurchases LF brand clothes that are not being worn, since last year. L RE:Market buys about 15 brands, including Hazzys, Daks, Maestro, Allegri, and Isabel Marant. Compensation is provided as L Rewards, which can be used on LF Mall. Hyundai Department Store, which owns the apparel company Handsome, also launched the The Hyundai Buyback service in July and buys more than 130 premium brands, paying out H Points.
There are two main reasons fashion companies are unveiling secondhand clothing resale platforms and expanding the brands they buy. First, it carries a good rationale. As clothing life cycles shorten and environmental issues come to the fore, they can be credited with extending those life cycles and actively addressing environmental issues through secondhand resale platforms.
It is also practical. Because compensation is paid as points usable on their own malls, it helps keep customers in the ecosystem. A fashion industry official said, "Because we pay the proceeds from selling secondhand items not in cash but in our own points or mileage, rather than generating direct revenue, it is effective in boosting customer loyalty by creating a virtuous cycle that leads to repurchases on our mall."
Some also say fashion companies have spotted a niche. Until now, most consumers sold secondhand clothing on platforms like karrot or Joonggonara. These platforms require sellers to find and communicate with buyers directly, which can be tiring. Disputes can arise over photos not matching the actual item, excessive haggling, or buyers unilaterally failing to show up at the agreed transaction location. On secondhand transaction platforms run by fashion companies, once you submit a sales request, prices are set through inspection, which can ease this fatigue.
From an industry perspective, the secondhand transaction market itself has grown. As a slump continues due to high inflation and polarization, there is a growing tendency to seek high-quality products at reasonable prices instead of new items. Seo Yong-gu, a professor in the Department of Business Administration at Sookmyung Women's University, said, "The more real purchasing power declines, the more likely people are to choose the 'secondhand' option, and companies recognized that this demand had increased and moved to run platforms."