The Debrief

Resale is no longer confined to thrift stores or niche platforms; it has grown into a roughly $50 billion industry in the U.S. alone, by some measures. Platforms like Poshmark, The RealReal and Vestiaire Collective have transformed the experience, making it more accessible and attractive to consumers at every price point. At the same time, brands are increasingly stepping into the space, with some launching their own programs to resell returned or used merchandise, transforming what was once a reactive practice into a strategic business opportunity. And new start-ups hope to create a new secondhand market out of brands’ returned merchandise. Retail editor Cat Chen and e-commerce correspondent Malique Morris join senior correspondent Sheena Butler-Young and executive editor Brian Baskin to unpack the evolving resale landscape. Key Insights: The destigmatisation of secondhand fashion is closely tied to convenience. “A large part of the equation is how easy it is to shop and sell secondhand,” explains Chen. “There are dozens of platforms that do peer-to-peer shopping options where you can buy something secondhand for, you know, at a fraction of the cost of retail where you can sell something that you've had for a while.… When resale is top of mind like that, I think the market adapts to that acceptance mentality.”But establishing a leading position in the market has proven difficult, despite rapid adoption. “The learning for operators of these platforms is that there’s very little consumer loyalty in this space,” says Chen. “When I consider selling something, I’m going to look at every single platform - whichever one gives me the quickest sale, the easiest sale, and the most money.” This dynamic has created a fiercely competitive landscape, with platforms racing to attract sellers by offering the best incentives. Bazar is taking a different approach to resale, stocking its marketplace with returned, goods brands would struggle to restock without refurbishment, including some fast fashion. “Bazar doesn’t go through the trouble of necessarily fixing items. It’s kind of listed as is, and customers get a ‘what you see is what you get’ experience,” says Morris. Additionally, Bazar allows fast fashion brands like Cider to offload inventory, which many traditional resale platforms avoid. “There is a level of transparency there which is supposed to be a part of the proposition of sustainability and a part of the proposition of resale as well.”As the industry develops, Morris envisions brands taking more ownership of resale, as platforms like Revive are already helping brands create their own resale programs to handle returned merchandise. Such efforts could turn resale into a sustainable, profitable venture, making it a key part of brand operations. “If resale can prove that it is an avenue for [brands] to achieve profitability … I can see it becoming a bigger priority brands which will make the shopping experience all the better for consumers."Additional Resources:Fashion’s Big Opportunity in Reselling the Unsellable | BoFShould Brands Stop Offering Free Returns? | BoF Hosted on Acast. See acast.com/privacy for more information.

Background:Over the past year, the pristine image luxury brands have built on their links to artisanal craft, ethical manufacturing and quality has begun to crumble, buffeted by a scandal that has linked labels including Dior and Armani to sweatshops in Italy. According to investigators in Milan, factories producing for the brands were operating illegally and exploiting workers. Dior and Armani have said the allegations don’t reflect their commitment to ethical practices, but prosecutors say the issues uncovered by the probe are systemic and entrenched. Around a dozen more brands could still be implicated, with further cases expected in the coming months. This week, BoF senior correspondent Sheena Butler-Young and chief sustainability correspondent Sarah Kent discuss the findings of BoF’s own investigation into how exploitative practices persist in luxury’s supply chains and what the scandal means for the industry. Key Insights: Luxury brands use their high prices and Italian manufacturing to sidestep concerns over labour practices frequently levelled against lower-priced labels. But the problems pervade even Italy’s most exclusive supply chains. “This may seem shocking and surprising to those outside this part of the industry, but in Italian manufacturing, everyone knows,” said Kent. “It's an open secret.”BoF’s investigation found brands routinely turn a blind eye to labour exploitation, ignoring red flags raised by audits and sustainability teams in the interest of convenience and cost. New regulations mean the risks associated with such scandals will soon be much more severe. Under incoming European due-diligence rules, brands could be subject to penalties of up to five percent of global revenue if they fail to adequately monitor and prevent labour abuses in their supply chains. “There are still a lot of questions around how that's going to be enforced and what that might actually mean,” said Kent. “But that is a chunky piece of change for any big company.”Additional Resources:Inside Luxury’s Italian Sweatshops ProblemIs Luxury Finally Set for a Sustainability Reckoning?Are Luxury Brands Still Worth It? Hosted on Acast. See acast.com/privacy for more information.

The beauty industry has witnessed a wave of disruptors rise and fall. Brands like Anastasia Beverly Hills, Glossier and Morphe leveraged social media and influencer marketing to achieve rapid success and unicorn valuations. But maintaining momentum has proven challenging, and some of these disruptor brands have seen sales fall and financial hurdles mount. As Glossier proves, there is the possibility of a second chance, but it requires radical changes to the business to pull off. As beauty correspondent Daniela Morosini points out, “The barriers to entry have been removed. You can get a critical mass of fans and build an aesthetic for your brand quite quickly. Making it stick is more difficult.” In today’s crowded market, sustainable growth and a deliberate strategy are essential for standing out.Key Insights: Slower growth in a crowded market can ensure longevity. “It’s the ones that are maybe growing a little bit slower, not having this initial huge rush and then a massive drop-off,” says Morosini. While brands can gain a critical mass of fans and build an aesthetic quickly, sustaining that momentum is much harder in today’s saturated market. “You go on TikTok, and there are 50 brands fighting for your attention. You go to Sephora, there's another 50,” Morosini adds. By focusing on steady, intentional growth, brands are better equipped to stand out and thrive in an environment where consumer choices are overwhelmingly abundant.In a saturated market, having a knowledgeable and authentic founder can differentiate a brand and build trust with consumers. “Brands that had a founder with expertise as a makeup artist or some other kind of professional qualifications helped bear out the brand and add a little bit more credence to it,” says Morosini. These founders often bring a personal approach to their brand, which resonates with consumers.Glossier’s success shows the value of balancing adaptation with staying true to a brand’s core mission. Despite being digital-first, the brand quickly established a physical presence, which “helped enmesh them and establish themselves with more the kind of quote unquote, middle-American consumer, just like a general shopper versus someone who is like a die-hard beauty fan,” explains Morosini. By moving away from an exclusively direct-to-consumer model, Glossier also refocused on its product assortment and customer needs. “Giving up on the DTC-only thing probably allowed them to take a hard look at their product assortment and build out more products that people were really interested in,” Morosini adds.A key lesson for emerging beauty brands is to prepare for both boom and bust cycles. As Morosini explains, “You’re probably going to be getting your most attention both from consumers and investors or acquirers during your fat years. And you need to be ready for the lean years because they're going to come.” She emphasises the importance of hedging strategies, noting, “No matter how well things are going, there will be a competitor snapping at your heels around the corner. Making sure that you’re keeping your strategy and product assortment broad enough to weather that.” Flexibility and foresight are essential to navigating inevitable market shifts.Additional Resources:How Anastasia Beverly Hills Lost Its Footing | BoFUrban Decay’s ‘Naked’ Relaunch Is a Hit. Now Comes the Hard Part. | BoF Hosted on Acast. See acast.com/privacy for more information.

For nearly a decade, the luxury sector has experienced what seemed like limitless growth, with brands like Louis Vuitton, Gucci, and Chanel pushing product prices higher — and seeing consumers pay up. However, recent quarterly reports have marked a sudden shift, with even industry giants reporting disappointing revenue. As luxury editor Robert Willliams explains, “These brands are omnipresent and people are seeing them everywhere. Whether consumers finally pull the trigger is so much about their economic confidence, this feel-good factor. Are things going to be better for me next month than they are today?”This week, BoF executive editor Brian Baskin and luxury editor Robert Williams discuss the forces contributing to this downturn, the implications for top brands and potential strategies luxury players are exploring to reignite growth.Key Insights: Global economic uncertainty has hit U.S. and European luxury spending hard. “Whether they finally pull the trigger [on a big purchase] is about economic confidence,” explains Williams, noting that factors like inflation, wage stagnation, and election cycles have consumers second-guessing expensive purchases. There are similar issues in Europe, with proximity to conflicts in the Middle East, Ukraine and Russia additionally impacting consumer sentiment and spending power.However, according to Williams, the biggest issue is China pulling back on this type of spending. China’s luxury market has always been a growth engine, but changing economic sentiments and less travel due to COVID are affecting luxury sales. “[Chinese consumers] are really holding out for when they feel better about the economy. … They’re holding out for when they can feel like they can get a deal because prices are higher in China than most of the world for luxury brands,” says Williams. Many consumers are frustrated with steep price increases, as seen with Dior’s Lady Dior bag, which has jumped 76% in price since 2019. “Customers are quite fed up with how dramatic the price increases have been often for like for like products,” Williams states, adding that consumers often feel they’re “spending a lot more for something that’s not necessarily as good.” Even if quality hasn’t declined, the perception has, especially with social media spotlighting any issues. “With the way our Internet culture works, if someone has an issue with the product, they can make that so public in a way and really disenchant a lot of people and their audience and make them question, is this high price worth it?”Facing a saturated market after years of rapid growth and price hikes, many forecast that 2025 and 2026 are to be similarly stagnant or negative periods for sales.” Even if it wasn't just a question of the prices or if there weren't these other macroeconomic factors, there could be a sense of having saturated the market, of people needing to be bored with fashion a bit so that then they can rediscover it. I'm not sure that it's the right time to introduce the next big idea if you were the one who had it,” says Williams. “Because if you're among the brands whose sales are quite negative … then how much can you really invest in telling the world that you're the one who has the next big idea?”.Additional Resources:Inside Luxury’s Slowdown | BoFWhy Some Luxury Groups Are Doing Better Than Others | BoF Hosted on Acast. See acast.com/privacy for more information.