The ‘Re’ Economy

Is Re-use, Rental, Repair, Resell + Refill the future of Retail?

While we’ve had our eye’s firmly gazed at the news of the pandemic or the US election, the ‘re’ economy has been taking off. That is the new retail businesses + categories dedicated to reuse, recycling, reselling, restored and refilling. Essentially businesses that exact value by not making anything new but through rethinking how products can have a second life.

I know, there are probably some of you rolling your eyes - thinking 'really?!' To that I want to say ‘Yes, Really!’ Just the resale market alone is thought to be worth $28B in 2019 (and growing to $41B by 2022). That’s just one part of this vast market…you might have heard our interview with Terracycle (and their Platform refilling Loop) who are working with everyone from Woolworths, Credo, Ulta through to Proctor + Gamble. It seems as though the next economic recovery will not be filled by new products or experiences…but by a new sustainable sensibility. A sensibility that finds a balance between ‘buying nothing’ and ‘conspicuous consumption’. Welcome to a new way of retailing that requires a vastly different skill set to just manufacturing a product. 

Here’s a couple of brand fearlessly stepping into this more sustainable approach to retail:

Gucci x The RealReal: 

Gucci announced a partnership with luxury reseller The RealReal earlier this month. FYI they are the most demanded brand on the resale platform, for the 3rd year in a row + their resale products company 2.3x the price of similar brands. Oh and finally 62% of Gucci’s sales come from those under the age of 35 years old. So the shift into the Re-Economy is Real (Pun intended). 

What this entails is the b rand having an exclusive Gucci store with used and unused product. What is this unused product you ask? Some of it is the personal collection of the brand’s creative director Alessandro Michel as well as product used in ads etc that was unable to be sold. The irony of this move is that Chanel is in an ongoing lawsuit with the RealReal for resale of it’s product. I mean lets be honest Chanel is the bastion of conservatism when it comes to luxury, being reticent to even get online in the first place (the irony of which during the pandemic was the only way to buy a Chanel bag was online as resale). 

Selfridges Project Earth:

The 111-year-old department store announced its shift into a more sustainable future with it’s platform Project Earth. This is a massive shift - bigger than just talking about goals around existing product - but one that has ben reselling, renting, repairing and refilling with them. This it’s just a marketing ploy, in fact it’s being driven by their Chairwomen Alanna Weston + comes with their own their own sustainability commitments. As a part of this, they have set up a Rental service in conjunction with HURR; the ability to resell - they’ve called it RESELLFRIDGES. You can shop pre-loved collections through a partnership with Vestiaire Collective, as well as sell your pre-loved goods by taking them in store and exchanging them for Selfridges credits. You can also repair your good with them (instead of buying anew) with their Repairs Concierge. Finally, they have launches a range of refillable cosmetics + other household products - this encourages foot traffic and also more sustainable behaviour. Oh and being Selfridges they’ve worked with their suppliers (like Prada) to reuse material and make new again. 

Gucci Off the Grid Collection: 

Ok, I’m putting Gucci in twice because this is inspired. Gucci have also launches a circular collection - made from scraps collected in their supply chain and sold at a slight discount. There are approx. 22 products at the moment, with actress/activist Jane Fonda as the face of it’s advertising. They’ve also started working with recycled fabrics like ECONYL, NewLife + Re.Verso; as well as launched a platform called Gucci-Up where they upcycle around 22 tons of Leather in a year. 

Ikea Buy Back

Another example, this time at the other end of the market. Ikea UK has launched a new initiative in time with Black Friday where it will buy back customers unwanted Ikea products (to resell at up to 50% of the original price). The customers who resell would be given an Ikea voucher without an expiry date (encouraging people to only buy what they need when they need it. This furniture will then be unsold in Ikea Stores. On top of this Ikea are also launching their first second-hand store in Sweden.This is part of their aim to be fully circular and climate positive by 2030. 

Loop x Ulta Beauty 

Here’s something we can expect to see here in your local Woolworths very soon. Loop, a platform that is part of Terracycle, is working to reduce packaging by allowing you to purchase from your favourite brands with reusable durable containers. Don’t worry aesthetics have been thought about. Now Loop will be launching at Woolworths soon. It’s also being launched in the US’ biggest beauty retailer Ulta, early next year. The way this program currently works, is you select the products you want online and they are delivered to you in reusable packaging. Then when you’re done, you schedule a free pick up of the empty package. Think of it the way milk bottles used to work. 

Welcome to the Re - Volution

These are but a couple of example that are popping up, as well enter a phase where businesses are truly responding to the need for greater accountability and sustainability. In a way the result is beneficial to both business + customer - the business is ultimately reducing it’s cost of goods (in some cases) and encouraging foot traffic in others; and the customer (and the world) start to benefit from the shift.