here to discuss is James Reinhart co founder and ceo
of thread up James, let's kind of hit the
other highlights here. Talk to me about the biggest
takeaways, you know, from this report, what
surprised you the most from this year's data? Yeah
, well it's great to be here. I mean
, I think that the overwhelming first part was that
, you know, how many consumers, especially young
people, are starting to think secondhand first. So
when you look at the data, 62% of young
people said when they go out to look for to
buy a new item, they think about shopping secondhand
first. I thought that was that was really a
staggering start uh to this report. You know,
when I look at kind of the second hand market
, obviously, especially right now, I think about
inflationary pressures, do you think some of the acceleration
that it seems like we're seeing in the growth with
second hand is related to inflation and people feeling that
pressure in addition to kind of that younger generation,
that seems to just be more environmentally conscious? Yeah
, what's interesting is the trend that's driven second and
over the last few years has really been more,
you know, secular and pandemic related. I think
what you see going forward actually is is what's going
to happen with inflation and you look at the data
, 58% of consumers said, you know, in
a in a period of rapidly rising inflation, you
know, second hand is a way to help their
dollars go further. And so I think you've already
seen this growth in this market and I think inflation
is a real catalyst for the market to grow further
. And so I think it's something we should all
keep an eye on. So I look at this
report then and I think of a company like a
thread up and I think, you know, how
do you interpret this report in terms of a strategy
moving forward to capitalize on this environment that you already
operate in? You know, ultimately it's about having
the products that consumers want to buy, right?
And so I think people shop secondhand because they can
find the brands they love that prices they love,
but importantly, in a sustainable way. And so
I think it's incumbent on us and other secondhand retailers
to make sure that we've got great product available.
And I think that's really the key is the merchandizing
and the storytelling around secondhand, you know, wedding
season is going to be huge this year, I
think it's like the biggest wedding season in 40 years
or something, you know, second is a great
place to find a wedding dress uh dressed to go
to a wedding secondhand, you know, people are
going back to work all the sorts of new clothes
that people will need for that. So there's many
ways in which people can shop second hand and I
think threat up, wants to be available for all
of them. And lastly here in terms of threat
of specific and then we'll kind of get more broad
in terms of the trends. Is are you already
starting to see that demand in terms of what we're
seeing in this report trickle into actual kind of,
you know, customer demand for thread up. You
definitely saw these spring trends really accelerate. You had
shorts that were, you know, were up 50%
, you had, you know, dresses for special
occasions, up more than 50% year over year.
So yes, we're already seeing a lot of those
trends play out. And now I think the question
is, does it have staying power through the summer
? What are the trends for fall? And I
think, you know, our team is very much
focused on the worst. Where's the consumer gonna be
as they get back from summer vacation. All those
trips that have been penned up, you know,
in in people's minds, you know, because of
the pandemic and be ready to really uh you know
, be the first place they come when, when
we go back to fall more broadly now, when
you look at kind of other brands out there,
retailers responding to this resale market, how do you
think they are responding right now or should respond and
position themselves really to take advantage of this growing space
. Yeah, my phone is ringing every day from
brands who have now seen our data for many years
have surveyed their consumers and understand that resale needs to
be a big part of their future. And so
I think what you're starting to find is brands opening
resale shops growth in branded resale shops was up 275
year over year. I think that number is going
to be double or triple penetration this year. And
so every brand I think needs to consider what their
resale strategy is. And I think threat up in
our resale as a service business is positioned to serve
them in any which way in which they want to
get involved. But this is where the consumer is
going and I think great brands, great retailers,
they take note of that and they go where the
consumer is going. Um and that's a big part
of what we're trying to do and help them with
. I mean to that point you look at the
data that you guys are gathering and then you look
at other data that shows I mean two and three
consumers believe that their consumption habits really significantly impact the
planet issues obviously like global warming and beyond to that
. Then I think about fast fashion and the decade
or two that we have enjoyed with fast fashion.
Is this the end of that era, especially in
the fashion industry? Boy, I wish, I
wish that were true, but but fast fashion is
a worthy competitor. You know, I think what
you find is that consumers tell you that it's sort
of an addiction that can't give up. I mean
fast fashion is, it's big tobacco. I mean
, it really is, it's bad for all of
us. It's bad for young people in particular.
And so we need to figure out a way to
give consumers choice and selection in a way that doesn't
harm the planet. Um, and so we're,
we're working on that, but, but I do
think fast fashion is, is not going away.
Um, it's really the choices that we make as
consumers, uh, to really, uh, to
change the way the world shops and you know,
we hope to be able to do our part when
you look at trends, uh, you know,
happening this year, happening right now. What are
some of the resale trends that people should be watching
out for? You were talking about weddings and it's
like kind of wedding outfits and this is the season
of prevents travel, but also wedding season. Yeah
. I mean, wedding wedding season is gonna be
gonna be a big one. I mean, I'm
shocked that the number of shoes that people are buying
, but you think about sort of, it's funny
, you know, you haven't had as many places
to go or work to go to a party to
go to. And so, you know, women
are buying lots of shoes on the site to,
to go a new shoe for every occasion, You
know, I guess, I mean returning to office
is a, is a big piece because people have
not had to go back to the office, even
if they're only going back a few days. You
know, they want, they want new outfits and
uh, they want new tops and blouses and,
and new pants and, and so you see a
bunch of these transitional moments in people's lives and that's
really what drives secondhand because you know, we're all
feeling a little stretched, You know, gas is
$6.7 out here, you know, in California and
, and second hand helps you stretch that dollar.
And so, you know, I think you're gonna
see consumers in this environment with these transitions in their
life becoming a second hand in meaningful ways. It
certainly makes sense right now. Um, in terms
of technology, right? And online marketplaces, how
is, how are those kind of key areas driving
the growth of the second hand market? Yeah,
online marketplaces are really driving a lot of this growth
. I mean, it's not as though you could
not buy second hand over the last 20 or 30
years, there have been plenty of offline thrift and
consignment stores. I think the big differences over the
last 10 years as mobile phone penetration has grown to
where it is and people can do this on their
phones, You know, they can do it at
10:00 at night while they're sitting on their couch.
And so that has driven a lot of the growth
, you know, you combine, uh, you
know, mobile phone penetration with a rising generation of
consumers gen z and millennial who I like to call
them. They were digital natives. You know now
I think about them as resale natives and you combine
digital and resale natives together and I think you have
a powerful combination of people who are going to shop
second hand and so I think that's a big part
of what's driving the growth over the next few years
. James, I was chuckling a little bit a
moment ago while you were talking because I felt like
you were describing me shopping for shoes 10 o'clock at
night in my bed. I'm certainly that consumer in
the resale market. Certainly not. No, I
feel a little bit better about it now James really
appreciate your time and your insight James, Reinhart,
co founder and ceo of thread up.