H&M remains to be the epitome of sustainable fashion. The apparel store aims to advocate a more circular business structure instead of a linear one. And their decision to buy a 70 percent stake in the second-hand shop Sellpy was one of the best decisions the fashion giant has ever made.
As more and more fashion brands gear toward a sustainable practice in textile manufacturing, distribution, and selling, H&M is one of the leaders that support this cause.
What is Sellpy?
In 2014, a second-hand online store Sellpy launched in an effort to advocate a second-hand culture in fashion. It opened its first four stores in Sweden, and since then, the platform claims that it’s been gaining traction in the market. The online store makes it easy for consumers to shop from a variety of pieces or even encourage them to sell their best, pre-loved clothes.
This builds a circular business structure in the fashion industry, where consumers don’t have to throw away their clothes if they’re not using it anymore. They can give other consumers a chance to enjoy their pre-loved garments at affordable prices.
This is perfect timing as the pandemic had struck the fashion industry big time. Consumers are now unwilling to spend on expensive, high fashion clothes due to the economic chaos. In fact, PYMNTS reported that reCommerce would see a surge in demand as second-hand fashion becomes a top choice today.
How Big is Sellpy?
According to CNBC, second-hand sales now sit at $28 billion and are expected to reach up to $64 billion within five years.
Since launching, Sellpy has sold over six million items on the platform. The second-hand market in the fashion industry sees a surge in demand as more people opt for second-hand clothing. Brands are put under scrutiny about where materials are sourced and how garments are produced. Moreover, fashion brands also cater to the demands, ensuring that a throwaway culture will be eliminated soon.
“We see a steady growth in demand for sustainable consumption, where second-hand is a great option. Every garment bought pre-owned saves resources for our planet. It’s therefore very exciting that we continue to grow and empower more customers in Europe to live circular”
Michael Arnör, CEO of Sellpy.
H&M bought a huge stake in Sellpy in 2015, spending $24.38 million or over 20 million euros, giving them a 70 percent ownership of the second-hand shop.
Expansion in over 20 countries
After launching in Sweden back in 2014, Sellpy carries on its mission to make second-hand clothing available to the world. In 2020, Sellpy launched in Germany. This year, the sustainable fashion brand launched in the Netherlands and Austria.
Sellpy collaborated with H&M Netherlands and H&M Austria to give people more second-hand options.
Due to the rapid growth of the startup company, H&M announced on Monday that Sellpy will launch in over 20 more countries in Europe.
“We’re excited about Sellpy’s continued international expansion which we support with our investment and strategic partnership. We truly believe in the entrepreneurs and team behind Sellpy and their unique circular business model, which perfectly aligns with our vision to become fully circular”.
Nanna Andersen, Head of CO:LAB H&M Group
As Sellpy aims to deliver affordable, second-hand clothing to consumers, they try to keep the process convenient for those who want to sell as well. For instance, they promise to handle all the sales processes.
The startup company will handle picking up second-hand clothes from the sellers and photograph them for the platform. In addition to that, Sellpy will also handle the selling as well as the shipping.
That said, it’s not only convenient for buyers who are more conscious about where their clothes are sourced and how they’re manufactured. But sellers can also earn income for clothes they don’t use anymore.
For sure, the resale industry will be progressive amidst the current situation we’re in right now. Hopefully, we’re all directed into this path and lead a sustainable lifestyle where nothing goes to waste. You know what they say, one man’s trash is another man’s treasure.
