Dive Brief:
- Crocs is jumping into the resale market through a partnership with ThredUp. Crocs customers can generate a prepaid shipping label on ThredUp's website, fill it with apparel, shoes and accessories from any brand, and ship it to ThredUp for free, according to a press release Thursday.
- Products that pass a quality inspection will be listed on ThredUp's platform, and sellers will receive a Crocs shopping credit. That credit can be used to purchase items in Crocs stores or on its website. Customers are encouraged to donate Crocs, but they are not required to participate in the program, according to the companies.
- Later on in the year, customers will be able to pick up a ThredUp Clean Out Kit at select Crocs stores in the U.S. Crocs said the partnership is part of its larger commitment to become a net zero company by 2030.
Dive Insight:
Over 700 million pairs of Crocs shoes have been sold globally since the company launched in 2002. And some of those pairs are sitting in consumers' closets, just waiting for a second life.
That's where ThredUp comes in. The company has been using its resale platform called RaaS, or "resale as a service," to collaborate with retailers, enabling them to provide secondhand products to their respective audiences. ThredUp has announced collaborations with companies including Madewell, Walmart, Everlane, Farfetch, Gap, Adidas and now Crocs.
"Crocs shoes are incredibly durable and perfectly built for a second life, so encouraging customers to consider reuse is extremely important to us," Michelle Poole, brand president at Crocs, said in a statement.
And it looks like resale as a service is quite lucrative. Wells Fargo analysts recently said that the resale platform arm of ThredUp's business has expanded its client list by over 30% in the last year, and is projected to land more than $300 million in revenue by 2025.
Meanwhile, Crocs is having a blockbuster year as consumers continue the pandemic trend of reaching for apparel and shoes that are comfortable. The company's revenue grew 73% year over year in its latest earnings, with digital sales up nearly 69%, even as it faced supply chain disruptions and factory closures in Vietnam. The company expects revenues to grow 20% this year, and set a goal of reaching $5 billion in revenue by 2026.
via https://www.aiupnow.com
Kaarin Vembar, Khareem Sudlow
