When fledgling footwear and apparel maker Allbirds, whose stock has fallen almost 70% since its initial public offering (IPO) in November, announced Thursday (Feb. 17) that it plans to begin reselling its gently used shoes, the news marked the latest entry of a retail brand entering the burgeoning and much-demanded sustainability segment of the retail industry.
Just last month, sneaker resale platform StockX was out looking for funding for a midyear IPO date, as reCommerce pioneers like eBay as well as startups and established companies like Nike all vie for a toehold in the used shoe market.
Read more: Sneaker Reseller StockX Inches Toward IPO as reCommerce Continues to Roil Retail
Hana Kajimura, head of Sustainability at Allbirds, told Vogue Business that the goal is to introduce more people to the brand’s shoes, which retail between $98 to $130 per new pair.
“What is the point of a resale program if customers don’t buy into it?” Kajimura said. “Our approach is to start small and keep expanding to more retail stores and eventually collecting shoes through eCommerce.”
For environmentally aware companies like Allbirds, the resale program also has a special place in its plans to cut its carbon footprint in half by 2025 and to near zero by 2030.
“To create a more sustainable fashion economy, it’s crucial that we take a holistic approach,” Kajimura said in a statement. “By launching our trade-in program, ReRun, we will enable our customers to play an integral role in extending the life of our shoes.”
The rise of resale companies like StockX and others, such as The RealReal, Rent the Runway, ThredUp or Poshmark, is being closely scrutinized by manufacturers, who are gradually warming up to the idea that there’s space in their portfolios for gently used items to exist alongside their new merchandise.
Brands such as Nike and Lululemon have entered reCommerce on their own. However, they are struggling to find the right balance between selling old and new, as well as answering the growing consumer call for sustainability.
“We’re changing our approach,” Nike Chief Sustainability Officer Noel Kinder wrote in a blog post last spring as the company unveiled its Nike Refurbished initiative as part of a broader five-year plan. “…Across the company, our teams are pulling together with surgical focus on our biggest challenges — and our biggest opportunities: sustainable materials, renewable energy and energy efficiency.”
See more: From Gently Used Nikes to Rapper-Backed Reeboks, Footwear Moves to Find New Feet
Of course, sneakers aren’t the only part of the apparel industry that’s getting into reCommerce. Companies ranging from Gore-Tex to luxury brand Oscar de la Renta are entering the market as a chance to introduce themselves to younger consumers.
Read more: From Gore-Tex to Gamers, New Categories, Locations Driving Growth of reCommerce
It’s all part of a broader trend PYMNTS CEO Karen Webster laid out in early January, predicting the resale space was set to undergo a burst of expansion and a range of innovation to make the format more available and easier for consumers to transact than ever.
“2022 will be the year that luxury brands strike back and use payments to help them reinvent the reCommerce experience,” Webster wrote in her 10-point digital transformation outlook that was published Jan. 10.
See more: 10 Things Will Define the Digital Transformation in 2022
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