What: two major brands entering the resale market, with two different methods

Why is it important: what you get with the resale model is not a margin, but traffic instore and customer data.

Both Gucci and Levi’s announced on the same week they were entering into the resale market, following other brands with take back programs such as Patagonia (2017) or North Face (2018). They have however a different approach. Levi’s is proposing its customers to bring back second-hand products in its own stores in exchange for a voucher, and resell the pieces in a new dedicated online store. Gucci however is not setting up such a complex process, as they are partnering with The Realreal, a second-hand marketplace. Teaming up with a brand is a way for the Realreal to escape accusations of selling counterfeit products, while this association provides Gucci a smart marketing angle (millennials, sustainability) with very low investments. The Business of Fashion notes that, more than the (low) margins that will be proceeding from these operations, the data collected, i.e. the consumption pattern for each product, will prove quite useful for real-time adjustments of instore merchandising for both brands.

Why Gucci Is Getting Into Resale

Levi's wants your old jeans back

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