4/19/2023 0 Comments Where are blue blocks trove![]() ![]() Brands wonder, if I promote the pre-owned business, am I going to cannibalize my new sales? My first comment to a brand would be, “Whether or not you are in this market, the customer is buying used items anyway.” The same concern applies to cannibalization. ![]() And when a brand is dealing with a disruption that is inherently a shift in how customers buy and what they buy, the choice of sitting this out is to walk away from the customer. It is a massive market shift whether or not brands and retailers take part. The best estimate over the next three years is $50 billion out of existing brand and retail sales in the US if there was a one-to-one trade-off between people buying used or renting versus traditional ways of buying new items from brands and retailers. McKinsey: What are the business opportunities created by the disruption of the retail model toward used or rented goods?Īndy Ruben: Let me preface this by emphasizing the amount of disruption occurring with this model. We came alongside and integrated with them under their brand, but we do all the logistics, the technology, and the program management. The brand was looking to move aggressively into the pre-owned space but didn’t have the capacity to take on the work. When you’re on and you click on Worn Wear, their used brand, you’re on the brand website that is powered by Yerdle. We pivoted the business roughly two-and-a-half years ago to focus on powering brands so that alongside the items they have always made and sold, they can buy back items that customers no longer need, and then resell them. I want a model that is focused on the quality of the brand.” And what we learned was that the friction in doing so was just too high-posting something, finding the item, trusting the seller of the item.Īll along, we were working with brands that would say, “I love this concept, but I don’t want my nice jacket next to a pair of old sneakers. When we started Yerdle, we worked on a marketplace where people could exchange used items. As retailers evolve, they will serve customers that way as well. In terms of our model, it’s been obvious to me for some time that while retailers focus on selling new items, increasingly, as customers, we’re very happy finding that used item that’s still in great condition instead of buying a new one from a store. McKinsey: Tell us what Yerdle’s model is and how it works.Īndy Ruben: We provide brands like Patagonia, REI, and Eileen Fisher with platforms for buying and selling used goods. ![]() He spoke with McKinsey’s Simon London about what strategies companies should be pursuing to get into the resale space, and why circular-business models are good for brands and consumers alike. Ruben served as Walmart’s first chief sustainability officer and led the retailer’s e-commerce strategy and private-brand and omnichannel initiatives before cofounding Yerdle in 2012. A resale platform, he says, allows brands to deepen customer engagement and increase profit while helping the environment by repurposing clothing and other items. In February 2020, Yerdle changed its name to Trove.Īs CEO of Yerdle, Andy Ruben believes that providing companies with a platform for buying and selling used goods accomplishes several things at once. ![]() Note: This interview was first published in September 2019. ![]()
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