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The Circular Retail Economy

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According to Boston Consulting Group, the global market for pre-owned apparel is growing at a rate of 15 percent per annum, generating a whopping $40 billion per year. As a result, established retail marketplaces have invested heavily in online resale technology platforms to expand their operational reach with consumers. In the last year, Poshmark’s recent acquisition of sneaker authentication platform Suede One to Etsy’s acquisition of Depop, and secondhand marketplace Vestiaire Collective raised $216 million in funding, has established resale as a top retail category.

With the supply chain in flux and the prospect of new inventory in the wind, more and more retailers are adapting their omnichannel strategies to incorporate circular economy concepts to maintain consumer interest and brand engagement. The secondhand retail market experienced a steady resurgence throughout the pandemic, inspired by consumers’ frugality and the aesthetic perpetuated by today’s youth and their prioritization of sustainable fashion, which influences 64% of Gen Z and Millennial purchases. And while we know this isn’t necessarily new information, perhaps the rising trend of luxury retailers embracing consignment and resale is newsworthy enough.

Accessories Make the Outfit

In the last few weeks, pre-owned luxury watches have dominated the digital resale marketplaces, and analysts predict that the remainder of the accessories sector will soon follow. For example, Net-a-Porter recently partnered with Reflaunt on a pilot program that encourages its loyal consumers to sell “well-preserved” previous purchases in exchange for credit or a direct deposit transfer, with accepted categories including designer jewelry ready-to-wear, bags and shoes.

The return on investment can be pretty lucrative for fashion enthusiasts and the retail marketplaces themselves. For example, coveted collectible handbags from Birkin, Gucci, Louis Vuitton and Hermes are more likely to resell at 75%-90% of their retail prices as reported by Rebag, an online platform for buying and selling luxury handbags.

Luxury Resale Makes a Global Impact

The US isn’t the only market reverting to the secondhand retail market due to supply chain struggles. China, which represents about 19% of the world’s population, is also driving revenue into secondhand luxury sectors. Before the pandemic, 56% of the yearly luxury purchases of Chinese consumers were abroad. Now, more than half of those purchases, or 86% of luxury purchases in both retail and resale, are happening locally. Now, more than half of those purchases, or 86% of luxury purchases in both retail and resale, are happening locally. Moreover, when you factor in the average age of the Chinese luxury consumer at 28 is a full ten years younger than that of the rest of the world, one can estimate the significant impact of this generation’s future buying power. The younger consumers of the post-00’s could make up nearly 40% of China’s luxury buyers by as early as 2035, according to Bain & Co., as the majority of the demographic enters the workforce.

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Anjee Solanki

National Director, Retail Services & Practice Groups

San Francisco

AREA OF EXPERTISE

In Anjee’s current role, as National Retail Director for the USA, she has developed strong relationships and strategic leadership to over 500 + retail professional nationally across 140 markets within Colliers for Investment Sales, Agency, Retailer Rep, and Retail Asset & Property Management.

Anjee Solanki brings 30 years of focused retail real estate experience to Colliers International.  She provides strategic retail advisory services to enhance value for her clients with her expertise in lifestyle, community, power center, neighborhood, mixed-use retail/residential, and resort retail. 

She has developed and manages strong working relationships with institutional and private clients such as State of Florida, State of Michigan, Heitman, Invesco, Grosvenor Americas, American Realty Advisors, TH Realty, PNC, and Zurich to name a few.

Her strategy identifies current market and property inefficiencies to capture untapped value through asset repositioning, releasing, redevelopment, rehabilitation, proactive management, and enhanced marketing. 

Creative problem-solving is her specialty, and she becomes a key stakeholder with national and international retailers, such as JPMC, Opry City Stage/Ole Red and Tim Hortons, and many others. Her highly focused approach reduces the risk profile and provides clients with a thoughtful approach executing strategic multi-year planning initiatives. 

BUSINESS BACKGROUND

Previously, Anjee served as Executive Vice President, Retail Services for Madison Marquette. She successfully assisted with repositioning community centers to lifestyle projects and identified opportunities to create value, resulting in higher returns for her clients. She also provided strategic analysis on complex redevelopment projects to address both the asset’s financial stabilization and/or the client’s exit strategy

BLOG

Anjee continues to be an insatiable collector of all things retail. She’s a student of culture living next door to future shoppers, whose fleeting trends constantly change the retail landscape … driving retailers, landlords and developers crazy! Read her Blog at:  https://knowledge-leader.colliers.com/author/anjee-solanki 

COMMUNITY INVOLVEMENT

Anjee is originally from Southern California and currently resides in San Francisco.  She is active in the Rincon Hill neighborhood residential improvement group, which participates in the public review of the highly anticipated Salesforce Transit Center in San Francisco.
 

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