Although the world is slowly transitioning into a new normal after the COVID pandemic, there are still plenty of repercussions affecting various industries. In the retail sector, a significant challenge facing retailers is the ongoing impact of the pandemic on national and global supply chains. This shortage continues to impact stock levels, pricing, product availability, and retention of customers.
What’s causing supply chain issues?
Many US-based retailers are still struggling with supply chain disruptions, driving up costs of available stock. Last year, Adobe, Inc. tracked online commerce sites and noted that out of stock messages were up by over 170% compared with the previous year, a considerable spike that’s continued this year.
Most supply chain issues result from pent-up demand after the pandemic, combined with a breakdown in various supply chains both nationally and globally. In addition, limited capacity in certain industries is also affecting supply chains. For example, there’s a current shortage in areas like transport and manufacturing, along with shipping backlogs from overseas, which means shelves are taking longer to restock.
These issues are impacting supply and demand. With the demand for items higher, it’s driving up prices.
What does this mean for secondhand clothing?
The disruption to many retailers’ supply chains means an increased focus on secondhand items. In 2021, secondhand e-commerce site Mercari predicted the secondhand online retail market would top over $65 billion, an all-time high for this booming industry.
With many customers unable to get what they want online from traditional online retailers, they’re turning to smaller and local alternatives, like local thrift shops and secondhand online sellers. Many of these sellers aren’t facing the issues of large retailers because they don’t have to rely on international shipping issues. Instead, they stock locally available clothing, shoe, and textile items.
Increased focus on sustainable clothing
While secondhand retailers are seeing significant growth because of local stock availability, this growth is also due to an increased focus on sustainable fashion. Younger generations are choosing recycled clothing options to reduce their environmental footprint.
Many experts are predicting that the market will only grow faster. For example, Accenture conducted a survey toward the end of last year, where over a third of shoppers said they were planning to buy secondhand apparel during the holiday season. However, when they looked only at survey respondents from people under 40, the number rose closer to 50%.
What this means for investment opportunities
Given the issues with supply chains affecting retailer availability, along with an increased focus on sustainable fashion, now could be the perfect time to invest in a clothing recycling franchise opportunity.
Not only will you be doing your part to support the environment and help reduce landfills, but it’s an excellent investment opportunity and a profitable business franchise. As a Clothes Bin® franchise owner, you’ll be able to upsell recycled shoes and clothing to secondhand shops, thrift stores, and consignment boutiques for a profit, which are all seeing an increase in demand for their products.
Becoming a Clothes Bin® franchise owner offers plenty of benefits. If you’re interested in finding out more about investing in a clothing franchise, get in touch with us to request more information.Back