Turning Old into Gold

The Case for Brands Owning the Resale Space.

Previously on Giuseppe’s Glimpse: In the last episode, we explored how AI can drive growth and innovation, not just efficiency. Through real-world examples in customer service, we showed how aligning AI with strategic goals can transform business. If you missed it, catch up here! 🌟

Buongiorno everyone! 👋

I recently came across some exciting news that hits close to home for me and could reshape the future of retail.

IKEA, the global furniture powerhouse, is venturing into the secondhand market with its own peer-to-peer resale platform. ♻️

This move marks a crucial shift for established brands, particularly in design and fashion, as they take ownership of their secondhand markets rather than relying on third-party platforms.

By entering the secondhand market directly, IKEA is taking on digital giants like eBay, Craigslist, and Gumtree, challenging what its CEO Jesper Brodin describes as a “monopoly or oligopoly” in digital classified ads.

The new marketplace, IKEA Preowned, is being tested in Madrid and Oslo, with plans for a global rollout. 🌍

It allows customers to list their furniture for sale directly to each other, using IKEA's AI-enabled database to supplement listings with professional images and product details, and offering a choice of cash or a 15% bonus voucher for the seller.

This strategy is more than just a digital upgrade; it reflects a growing trend for brands to control their resale channels to gain insights into customer preferences, anticipate trends, and safeguard product authenticity. 🔍

For IKEA, this new platform is part of a broader vision to become the ultimate destination for home furnishing, where customers can buy, sell, and even access services like home planning and finance—all in one place.

It’s not just about sustainability; it’s also about fostering deeper relationships with customers and capturing a share of a rapidly expanding market segment. 🤝

As the resale market booms, taking ownership of this space has become essential for maintaining customer loyalty and staying relevant in a competitive landscape.

The playbook for a circular economy 

IKEA’s new initiative highlights a critical shift in retail strategy: it's no longer just about selling new products but managing the entire product lifecycle—from the initial sale through secondhand transactions and even repair services. 🔄

This holistic approach aligns with growing consumer demand for sustainability and reflects a smarter business strategy that leverages the full value of every product.

Yet, many retailers face significant operational and logistical hurdles in making this transition.

This is where innovative startups like ClooV come into play. ✨

Co-founded by Olimpia Santella and Chiara Airoldi, ClooV collaborates with top fashion brands and retailers to promote more sustainable business practices, such as renting out portions of their inventory or reselling preowned items.

Their mission centers around the three Rs—Rent, Resell, Repair—which form the backbone of a circular economy model aimed at minimizing waste and maximizing product lifespan.

Let’s have a closer look at how this works:

🕰️ RENT: Brands can unlock new revenue streams through temporary product use, catering to consumers who seek flexibility and reduced ownership costs. 

🛍️ RESELL: As brands are able to maintain control over the quality and authenticity of their products while fostering stronger customer relationships, items are given a second life. 

🔧 REPAIR: By focusing on durability and maintenance, customers can extend the life of their purchases and reduce the environmental impact of fast consumption.

A few years ago, I chose to invest in ClooV, driven by my belief that these virtuous business strategies—those that prioritize creating shared value for both companies and society—are not just ethically sound but also profitable. 💚 

As consumers increasingly favor brands that demonstrate a commitment to sustainability, companies that embrace this "Rent, Resell, Repair" model are positioned to lead in a rapidly evolving market. 

Rethinking growth

As the global economy shows signs of slowing, there’s been increased discussion around "degrowth"—a concept that challenges the notion of perpetual economic expansion as unsustainable. 📉

Degrowth advocates argue for scaling back consumption and production to preserve planetary resources, suggesting that smaller-scale economies could offer a more sustainable future. 

While this perspective raises thought-provoking questions about our economic foundations, it’s not a realistic path for most businesses. 🤔

Companies are inherently designed to grow, and our global economy depends on growth for prosperity and stability.

However, there is a compelling alternative that balances growth with responsibility. 

Rather than pursuing degrowth, businesses should focus on sustainable growth strategies that integrate environmental stewardship, social equity, and economic viability. 🤝

By aligning their goals with broader societal needs, companies can foster a more sustainable future without abandoning the pursuit of growth.

This approach encourages innovation and unlocks new opportunities, especially in sectors like the circular economy, renewable energy, and sustainable practices. 

It’s about redefining growth—not as a relentless expansion at any cost, but as a balanced, purpose-driven progress that benefits both businesses and society. 🌱

This is where true, long-term value lies, and it’s a vision that can realistically guide us through the challenges of the 21st century.

As we move towards a future where sustainability and business success are increasingly intertwined, brands must ask themselves: 

How can we innovate to create value throughout the entire product lifecycle? ♻️

Are we ready to adapt to new consumer behaviors and expectations? 

And what steps can we take today to align our growth strategies with a more sustainable future?

Stay curious! 🙌

-gs

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