US Circular Shopping Market Report 2023

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top Takeaways
• Consumer trends
• Competitive strategies
• J. Crew enters the circular economy; opportunity to appeal to various motivating factors
  • Figure 1: J.Crew launched a resale program
• Rent The Runway leverages strategic partnerships for its inventory; highlights the opportunity to explore various circular shopping models
  • Figure 2: Rent The Runway partners with Saks Off 5th to sell previously worn items
• Uniqlo offers repair services in certain US stores; highlights opportunities to explore new circular models
  • Figure 3: Uniqlo launches a repair service
• Market predictions
  • Figure 4: Items acquisition, 2019-22
• • Figure 5: Circular shopping outlook, 2023-28
• Opportunities
• Circular shopping is a more affordable gifting option
• Explore and support circular business models
• Bring circular offerings to where the consumer is

Market Landscape

• Secondhand continues to win consumers’ wallets
  • Figure 6: Items acquisition, 2019-22
• Tap into circular shopping growing interest
  • Figure 7: Category interest, by gender and age, and parental status, 2022
• • Figure 8: Floorfound offers recommerce options for returned furniture

Market Drivers

• A vulnerable and uncertain economy is an opportunity for secondhand and rentals
• What we’re seeing
• What it means
  • Figure 9: Consumer Price Index change from previous year, 2020-2022
• Attitudes about ownership are evolving
• What we’re seeing
• What it means
  • Figure 10: Mend Mother allows consumers to mail-in apparel for mending and repairs
• Digital channels remain key for circular shopping; the return to in-store shopping opens more doors for brands and retailers
• What we’re seeing
• What it means
• Consumers are increasingly focused on the environment and sustainability efforts
• What we’re seeing
• What it means
  • Figure 11: ThredUP guides consumers to reduce their footprint
• More comprehensive and consistent green claims regulations could be on the horizon
• What we’re seeing
• What it means
  • Figure 12: Shein receives backlash for its resale platform launch

Competitive Strategies and Market Opportunities

• J. Crew enters the circular economy; opportunity to appeal to various motivating factors
  • Figure 13: J.Crew launches a resale program
• Rent the Runway leverages strategic partnerships for its inventory; highlights the opportunity to explore various circular shopping models
  • Figure 14: Rent The Runway partners with Saks Off 5th to sell previously worn items
• Rolex sells secondhand items through authorized dealers; luxury brands have an opportunity to reach new consumer segments
  • Figure 15: Rolex launches a pre-owned program
• Uniqlo offers repair services in certain US stores; highlights opportunities to explore new circular models
  • Figure 16: Uniqlo launches a repair service
• Dick’s Sporting Goods drives consumers to the store through trade-in events; opportunity to drive footfall and consumer engagement through circular engagements
  • Figure 17: Dick’s Sporting Goods hosts in-store trade-in events of used gear

The Circular Consumer – Fast Facts

Openness to Alternative Shopping Options

• The increasing availability of alternative shopping options facilitates adoption
  • Figure 18: Openness to alternative shopping options, by gender and age, 2022
• Multicultural consumers turn to alternative shopping options as an affordable way to have access to goods
  • Figure 19: Openness to alternative shopping options, by race and Hispanic origin 2022
• • Figure 20: Depop puts its sellers under the spotlight to resonate with various audiences

Circular Acquisitions and Future Consideration

• Current behaviors and future consideration highlight opportunities across categories
  • Figure 21: Kaiyo focuses on convenience for sellers and buyers
• • Figure 22: Circular acquisitions, 2022
• • Figure 23: Category interest, 2022
• Younger generations turn to the circular economy to get dressed
  • Figure 24: Circular acquisitions, by age, 2022
• • Figure 25: Rent the runway partnered with The Black Tux for wedding season
  • Figure 26: Rowely helps brides buy and sell quality outfits and accessories
• • Figure 27: Category interest, by gender and age, 2022
  • Figure 28: Amazon teams up with the reseller What Goes Around Comes Around to sell pre-owned luxury items
• Circular shopping makes parenting easier and more affordable
  • Figure 29: Circular acquisitions, by parental status, 2022
• • Figure 30: Category interest, by parental status, 2022
  • Figure 31: Loop rentals offers convenient, sustainable and affordable access to baby gear

Retailers Shopped

• Consumers are turning to online marketplaces but physical shopping is still preferred
  • Figure 32: Retailers shopped, by age, 2022
• • Figure 33: Goodwill launches an online shopping site
• Online circular sites offer various benefits for parents
  • Figure 34: Retailers shopped, by parental status 2022
• • Figure 35: Hand Me Up offers a convenient shopping experience and social shopping events

Information Sources

• Consumers are talking about circular shopping
  • Figure 36: Rent The Runway leverages influencer marketing to drive rentals awareness
• • Figure 37: Beni browser extension aims to make secondhand shopping easy
  • Figure 38: Information sources, by gender 2022
• • Figure 39: TURF Analysis – Information sources, 2022
• Reach consumers of all ages by leveraging digital and traditional channels to promote circular shopping options
  • Figure 40: Information sources, by age 2022

Shopping Drivers

• Quality, price and uniqueness attract shoppers
  • Figure 41: Shopping drivers, by gender and age, 2022
• • Figure 42: The RealReal works hand in hand with an archival expert for authenticated vintage
• Appeal to Hispanic consumers’ sense of style and tendency to treat themselves
  • Figure 43: Current Boutique provides styling tips
  • Figure 44: Shopping drivers, by race and Hispanic origin, 2022
• • Figure 45: ThredUp educates consumers on the impact shopping choices have on the planet

Attitudes toward Renting

• Perceptions about ownership are evolving and becoming more flexible
  • Figure 46: Zipcar communicates its cost-savings benefits in a tangible way
• • Figure 47: Attitudes toward renting, by age; race and Hispanic origin, 2022
  • Figure 48: Loop clearly communicates its safety and cleaning protocol

Attitudes toward Buying Secondhand

• Break down the barriers to secondhand shopping through increased transparency
  • Figure 49: Attitudes toward buying secondhand, by gender and age, 2022
• • Figure 50: ThredUp encourages consumers to feel proud about wearing secondhand
• Tips to make secondhand more attractive to multicultural consumers
  • Figure 51: Poshmark showcases resellers on social media
  • Figure 52: Attitudes toward buying secondhand, by race and Hispanic origin, 2022

Attitudes toward Reselling

• Attract sellers by harnessing the benefits of resale
  • Figure 53: Poshmark provides sellers a convenient way to ship their items
  • Figure 54: Pact encourages consumers to donate gently used clothes
• • Figure 55: Attitudes toward reselling, by gender, 2022
• Unlock the secrets to attracting younger sellers
  • Figure 56: Attitudes toward reselling, by age, 2022
• • Figure 57: Poshmark supports sellers with listing tips
  • Figure 58: Levi’s focuses on the longevity of its designs

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations

Appendix – The Market

• • Figure 59: Disposable Personal Income change from previous period, 2010-2023
  • Figure 60: Consumer Sentiment Index, 2007-2023
  • Figure 61: Unemployment and underemployment, 2010-2023

Appendix – The Consumer

• • Figure 62: Median household income, by race and Hispanic origin of householder, 2020
• • Figure 63: Repertoire of items acquisition, by parental status and children in the household, 2022