The billionaire market resale, which is the resale of products that have already been used, is being practiced by brands that set the tone of the future, increasingly permeated by the concept of sustainability and the use of products and services that do not harm the planet. The concept features prominently in NRF 2023.
It is a growing practice in retail to collect little-used products from consumers and sell them to new customers either in-store or on the company’s website. Resale helps reduce the environmental impact, generates additional sales and attracts new customers to the brand, in a business model that prioritizes sustainability.
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“Resale contributes to the planet, generates traffic, generates profit, generates sales.” The testimony of Lee Peterson, executive vice president of WD Partners helps to understand the importance of resale or sale of so-called second hand products (second hand). Peterson commented that being done well in the store can be profitable and increase customer traffic that circulates through the physical spaces, in addition to being ecologically beneficial.
He also highlights that the resale is not just for young people who think about the sustainability of the planet and have no income. Despite having a growth among generations X, millennials and Z (35%, 33% and 44% respectively), there was a 56% increase in resale in the baby boomers generation (born from 1945) “Resale is for everyone world that perceives value”, he pointed out.
The execution of a successful resale model also set the tone for the discussion between Brian Ehrig (Kearney), Liz Hershfield (J. Crew Group/Madewell) and Sarah LaFleur (MM LaFleur). Those who sell used products to the store can receive money or bonuses, and the market opens up space for the exploration of business niches, such as the company that recycles jeans. The main message for them is the following: the resale of used products must be in the essence of the brand, in order to generate value for the customer.
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Retailment is born: retail + entertainment
Neiman Marcus, one of the main players in the luxury market, invests in “Retailment”, a combination of retail and entertainment with restaurants, bars and other services inside stores. The key to success is the very intimate connection with the customers. During the pandemic, employees maintained their relationship with customers, regardless of the sale. This is to keep the relationship and established trust alive.
“The physical store continues to be very important for the group – the mix has changed, digital represents just over 20% of sales. But it will never be half and half. Customers want the experience. The personalized service makes people buy much more than they would do alone”, explained the group’s CEO, Geoffroy van Raemdonck.
Food retail: appetite for product innovation
A panel on ready-to-eat meals in food retail brought trends in consumption habits and rising categories. For example, ready-made products and dishes for storing at home. Snacks are growing too, as well as combinations of sweet and savory products. Products for special events have also grown – and here the size of the package is fundamental.
As well as collecting and using data to make decisions, in innovation the company has to put the consumer at the center, solve his problem. In product innovation, consumers want new things in health and wellness.
As an example of innovation in services, Target spoke about the experience with the Starbucks brand. “People love exploring the shelves with a coffee in their hands. What if we can deliver a coffee while you’re still in the car, in the parking lot?” said Rick Gomez, executive vice president of the company. The project to deliver coffee to the consumer while still in the car is already happening in 12 stores.
PepsiCo: Development of training programs
The PepsiCo Foods lecture brought interesting tips to minimize employee attrition at work in the company’s distribution centers, such as the various training and human development initiatives. “It’s not just about the work itself, but about giving them opportunities to improve as professionals and as human beings,” said the company’s CEO, Steven Williams. One of the important practices adopted was changing shift times and routes so that truck drivers are home at night. “Having excellent training programs is vital.”
Adir Ribeiro is CEO of Praxis Business. Specialist in Business Models and Human Development for Franchising, Retail & Sales Channels.