Fashion gets a big tech makeover

It is without a doubt that Polestar loves a good ESG story. One of the trends I’ve been following is sustainable fashion, which made its way into our blog in one of my last posts.

In the past couple of weeks, I’ve seen some big names hop onto this trend:

  • In June, Etsy bought the fashion resale app Depop for $1.62 billion
  • ThredUp acquired Remix for its European expansion in July. 
  • H&M is planning on launching a resale app next month in Canada. 
  • Harvey Nichols is joining this month with its own market. 
  • Both H&M and Harvey Nichols are partnering with a London-based resale-as-a-Service (RaaS) technology company Reflaunt – which just raised $2.7m in a pre-Series A funding round led by the investment arm of MadaLuxe Group.

While not the only reselling platform out there, Reflaunt shows how many luxury and non-luxury brands have realised that reselling is the way forward. And investors are watching. 

With the next generation of consumers becoming ever-more environmentally cautious, everyone is going to need to figure out a way to keep selling clothes while keeping things green.

While there are established names in the resale market, such as Depop, Thredup, Vinted, Poshmark and The RealReal, the market is still relatively new and still breaking its way into the mainstream. This is a great opportunity for investors, tech, and fashion companies to seize the opportunity. 

Polestar would love to hear how your company is moving its way forward with ESG, or how you’ll hop on this trend. We have done research within this area and led deals within the software and technology sector that could benefit your plans. As always, please reach out!

The luxury resale market is growing rapidly as consumers try to be more environmentally conscious about their purchases and chase bargains.

By Anusheh Khan on 24/08/2021