How Is Sustainability Driving the Recommerce Industry?

Consumers are being increasingly critical about a product's life cycle before they make any purchase, influencing brands to be transparent with their operations behind the scenes.

What is 'Recommerce'?

To start off, the term recommerce refers to the act of resale of preowned items on market places. These goods are aimed at reducing the carbon footprint of the product.

Consumerism Curtailment

A prominent behaviour change we have seen in recent years is sustainable consumption among consumers, more of recycling, reusing, and thrifting. A recommerce report by OfferUp claimed that the industry grew 21% in 2021 and is expected to be valued at $178 million in 2022 and $289 billion in 2027.

Actions

Deloitte's 2022 Sustainability and Consumer Report grouped consumer's top 5 practices that is considered important:

1. Producing sustainable packaging and products

2. Reducing waste in manufacturing process

3. Committing to ethical work practices

4. Reducing carbon footprints

5. Respects for human rights

Using this as a framework, brands' values should also align with these principles. Sustainable business practices is a long-term investment, helping companies to gain a competitive edge in the future.

• The RealReal, a company that resells luxury goods, with the mission "to empower consignors and buyers to extend the life cycle of luxury goods in a way that honors luxury brands". It is a reliable platform, given that these items must go through a rigorous inspection by in-house gemologists, horologists, and brand authenticators. Total revenue 2021 of $143 million, 20% increase YoY

Other brands include:

Source: Medium

Main Drivers

1. COVID

Seems quite obvious, but why is COVID present in mostly every emerging trend? Consumers had the time to evaluate their spending habits. According to LEK's survey, 57% said their pre-pandemic purchases were unnecessary.

2. Price

With the upcoming recession and living crisis, consumers are more price-sensitive. Second-hand items are affordable which they can still use in good condition. Brands also promote these actions:

- Lululemon Like New

- Levis Secondhand

3. A Start to A Sustainable Lifestyle

Sustainable consumption behaviour is driven and influenced by social and personal values. Individuals felt the need to change as governments/authorities all over the world are cooperating together to resolve these environmental issues. Hence, this also influenced people to make small actions to contribute to this change