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Brief Published: 15 Feb 2017

Kids' Fashion: Recommerce Sites Boom

Little Circle

Parents' increased willingness to spend on kids' fashion, combined with an appetite for seeking value at all levels of purchasing (see The Austerity Opportunity for more), is fuelling an upsurge in online recommerce initiatives in Europe and the US. The UK childrenswear market is expected to hit £7.8bn by 2019 (Mintel), with global sales growing at a CAGR of more than 6% by 2020 (Technavio).

  • Circular Commerce: Created by Tatler's former fashion director Anna Bromilow and ex-investment banker Lisa Picardo, British company Little Circle specialises in high-end childrenswear. Items are returned to the company once they are outgrown. Rather than being resold for a direct profit like Ebay, users sell the clothing in exchange for a site credit, or donate the money to charity.
  • Upfront Payment for Choice Items: At San Francisco-based reseller ThredUp, consumers order a pre-paid shipping bag, fill it with kidswear, and arrange a pick-up. Users receive payment for the highest-quality items before they're sold, while standard 'consignment' items result in a payout 14 days after they're traded online. European resale competitors include Percentil in Spain and Dutch site Vintykids.com.
  • Luxury Resales: Premium French recommerce business Vestiaire Collective requires users to submit photos of pre-worn items, selecting only the best-quality pieces for resale. The company has now launched a kids' section, stocking brands including Baby Dior and Bonpoint.

For more on children's retail, see Kids-Centric Commerce 2017 (publishing on February 16), and Toy Worlds: Targeting Gen Me. For more on reselling, see Rent the Runway's Subscription Mode, Sneakerhead Resale Mega-Concept, The Berkeley Vintage Style Service and Byronesque: Vintage E-Tail App.