Treet is a company at the forefront of the circular economy in fashion, partnering with brands to create branded resale platforms that allow customers to buy and sell pre-owned items directly within the brand’s ecosystem. With the backing of a $10 million Series A funding round led by Two Sigma Ventures, bringing their total funding to approximately $16.4 million (Treet Bags $10 Million in Series a Funding to Enable Brands to Launch Their Own Resale Programmes, 2024), Treet has assembled a team dedicated to reshaping the way brands engage with the secondhand market.

Treet's impact on the secondhand market reveals that resale programs can drive growth and strengthen customer relationships without cannibalizing core sales

Treet’s mission goes beyond simply providing resale infrastructure; it seeks to demonstrate that resale drives new product sales rather than cannibalizing them. Treet’s data reveals that 77% of resale buyers eventually purchase new items, and 89% of sellers return to buy new (Resale Cannibalization: A Myth Debunked, 2024). These statistics underscore the “resale value effect,” where customers who engage in resale develop stronger loyalty to the brand, deepening their connection rather than detracting from new sales. Treet amplifies this cycle by offering sellers a unique incentive: a 10% bonus above market value if they choose a brand gift card as compensation, strengthening loyalty and encouraging repeat purchases while promoting sustainable consumption.

Technology has transformed the used apparel market, making it easier than ever to match supply with demand. Millennials and Gen Z, highly skilled with digital platforms and motivated by purpose over price, are leading this trend (2023 Gen Z and Millennial Survey, 2023). Treet’s advanced data capabilities ensure that pre-owned products reach interested buyers, connecting sellers and buyers in a way that maximizes product lifespan and value.

One of Treet’s most compelling insights is that 45% of resale shoppers are new to the brand (Resale Cannibalization: A Myth Debunked, 2024). This reflects a novel approach to customer engagement, where “Customer 2+” (second or more owners of a product) represents a segment that can transition into “Customer 1” (new product buyers). Today’s resale shoppers are often price-conscious, but Treet’s model shows they can be motivated to buy new over time as they develop a brand affinity. This opens fresh avenues for brands to grow with price-sensitive consumers who may begin with resale but later move to full-price purchases. It redefines resale not merely as a revenue stream but as a gateway to future loyal customers.

This strategic approach to resale prompts an important question: What would happen to mature circular industries, such as real estate, automotive, or mobile, if they suddenly stopped offering buy-back or trade-in programs that allow customers to leverage the value of their previous purchases? These sectors are built on the principle of residual value, which drives new purchases by providing a way to trade in the old. Without this, they would likely lose relevance, quickly outpaced by third parties or new competitors offering that same value exchange.

Treet’s model positions resale as more than just a sales channel—it’s a powerful tool for fostering customer loyalty, extending product life cycles, and maintaining brand relevance in a price-conscious, sustainability-driven market. For any industry, embracing a circular approach creates value at each stage of a product’s lifecycle, ensuring customers benefit continuously from their purchases. In a world where consumers increasingly prioritize value and sustainability, this approach is not merely advantageous—it’s essential.

The rise of the $350 billion secondary market in apparel encourages brands to rethink growth strategies centered solely on production increases (Walk-Morris, 2024). Could the solution to the problem of cheap, fast fashion be found in circular models like clothing as a service, where consumers rent items for a season or short term? Or should brands further embrace resale markets, aiming to win not by making more products, but by maximizing the value of what’s already been made? Embracing these circular models offers a dual benefit: cultivating brand loyalty in the primary market while delivering sustainable, profitable solutions in the secondary market, ultimately aligning with consumers’ evolving expectations for value, responsibility, and sustainability.

Treet's impact on the secondhand market reveals that resale programs can drive growth and strengthen customer relationships without cannibalizing core sales. According to a 2024 Treet article, none of the 185+ brands partnered with Treet reported a decline in their primary sales (Resale Cannibalization: A Myth Debunked, 2024). Instead, they consistently experienced increases in both new customer acquisition and total revenue. This data underscores that resale platforms, when thoughtfully integrated, create a powerful cycle of brand loyalty and customer engagement, ultimately fueling sustainable growth in the evolving consumer landscape.

References:

Resale Cannibalization: A Myth Debunked. (2024, July 24). Treet. Retrieved November 3, 2024, from https://www.treet.co/post/resale-cannibalization-a-myth-debunked?srsltid=AfmBOoqxbHHJHrXI5EIkW6obxfPMqx-mqZZQWrByFUEPxIijBoXay7m9

Treet bags $10 million in Series A funding to enable brands to launch their own resale programmes. (2024, March 11). Retail Technology Innovation Hub. Retrieved March 11, 2024, from https://retailtechinnovationhub.com/home/2024/3/11/treet-bags-10-million-in-series-a-funding-to-enable-brands-to-launch-their-own-resale-programmes?rq=treet

2023 Gen Z and Millennial Survey [Report]. (2023). Deloitte. https://www.deloitte.com/global/en/issues/work/content/genzmillennialsurvey.html

Walk-Morris, T. (2024, March 27). ThredUp: US secondhand market to hit $73B by 2028. Retrieved November 3, 2024, from https://www.retaildive.com/news/resale-secondhand-apparel-market-growth-projections/711476/