H&M and ThredUp launch second-hand fashion platform, opening up a new front in fast fashion

It is learned that on March 14, fast fashion brand H&M cooperated with second-hand fashion e-commerce platform ThredUp to launch its first resale platform H&M Pre-Loved in the US market. The launch will include more than 30,000 second-hand H&M clothing on the thredup platform.

The move makes H&M, Europe's 11th-largest retailer by online sales, the largest retailer to sell used clothing and accessories through ThredUp's resale platform, which has partnered with dozens of other brands and is launching resale programs with J.Crew and Kate Spade in 2023.

As global clothing brands try to minimize their impact on the environment, second-hand e-commerce has become an important way and can bring in new sources of revenue. In February this year, H&M announced a plan to sort old clothes in Europe for resale and recycling.

Abigail Kammerzell, head of sustainability at H&M North America, said in a statement that the second-hand e-commerce model can help reduce the impact of fast fashion on the climate and environment while continuing to provide customers with fashionable products.

At this point, it’s unclear whether the resale program will ultimately lead to a drop in demand for new merchandise from the brand.

According to a DigitalCommerce360 survey of thousands of U.S. consumers, 13% have purchased fashion products from second-hand merchants, and 14% said that retailers’ sustainable policies prompted them to make purchases. At the same time, 30% have never purchased second-hand fashion items and do not plan to buy any this year.

For brands like H&M, it is easier and cheaper to use the existing technology and logistics of resale platforms such as ThredUp than to create services on their own. "Resale as a service" is another source of revenue for ThredUp in addition to selling second-hand goods on its own website, but ThredUp does not disclose how much revenue this business model brings.

H&M did not disclose its forecast for potential revenue from sales of second-hand goods. Many companies that have recently launched resale platforms say revenue may be small at first but will grow over time as the market expands.

Editor✎ Ashley/

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