Lafleur Llc: M.M.LaFleur's Second Act-Where Sustainability Meets Profitability

The global secondhand clothing market is slated to grow three times faster than the overall market, reaching $350 billion by 2028, according to ThredUp's 2024 Resale Report . New York-based fashion brand M.M.LaFleur was one of the first brands to partner with Archive , a peer-to-peer resale platform, in 2021. Dubbed " Second Act ," the program-which is now profitable-offers resources that let consumers clean out their closets and access the womenswear label's items. When reselling pre-loved items, consumers earn cash or store credit. More from Sourcing Journal Three years in the resale space later, M.M.LaFleur shares the highs and lows of secondhand sales. "First and foremost, we pride ourselves on designing thoughtful, timeless pieces that are built to last. That said, we understand that wardrobes, dress codes, and sizes evolve over time; at some point, a customer may end up with a M.M.LaFleur piece they no longer need," Katie Twidwell, M.M.LaFleur's vice president of sales and operations, told Sourcing Journal. "We launched Second Act to provide customers with easy ways to seamlessly and responsibly buy and sell pre-loved M.M. clothing, extending the lifespan of quality garments." Since its launch in 2021, the Second Act program has garnered over 10,000 unique signups, 8,000 unique buyers and 3,000 unique sellers. "The program has also sold over 25,700 items and facilitated 15,000 orders, effectively driving sustainable fashion practices while also meeting consumer demand," Twidwell said. "I think the main challenge we've experienced is balancing when to market our resale site versus our main collection and ensuring they're complementary rather than competing messages." "Interestingly," 68 percent of sellers choose store credit for their Second Act sales. Customers using Second Act credit on an order tend to spend three times the amount of credit they earned, "which speaks volumes to our customer engagement and loyalty," Twidwell said. In 2024, the brand reached an average of 1,000 units sold per month on Second Act, marking a "significant increase" from the 600 units sold in 2022. M.M.LaFleur's highest sales month-to-date was September 2023. Three years in the resale space later, M.M.LaFleur shares highs and lows of secondhand sales. "Resale has expanded the consumer base that M.M.LaFleur is able to serve; such as younger audiences or women with leaner budgets. Resale is really having a moment , as more and more customers seek to minimize the effect their shopping habits have on the environment," Twidwell said. "Serving these customers is a win-win proposition; as we help women shop sustainably, we can also expand the impact of the mission that drives us: when women succeed, the world is a better place." The brand's customer breakdown also shows a "diverse mix." Seventy-one percent of the platform's users are returning customers, while 23 percent are exclusive Second Act shoppers. About six percent convert from Second Act to purchasing from M.M.LaFleur's primary collection. On average, each seller has eight items listed on Second Act, indicating a "healthy level" of participation and inventory turnover . "Our resale program serves as a testament to the enduring quality of our clothing. By offering pre-loved items on our website and in stores, we demonstrate the longevity and durability of our high-quality materials and fabrics," Twidwell said. "Doing so not only reinforces our commitment to creating lasting pieces but also promotes more sustainable shopping habits and conscious consumerism." Last week, the label expanded Second Act with a take-back program , allowing customers to drop off their used items in stores or mailed back for a gift card or store credit. M.M.LaFleur is also trialing in-store secondhand sales at several locations. "As consumers increasingly prioritize sustainability and value, the future of resale is set to embrace a hybrid approach, integrating both online and in-person channels to meet evolving consumer needs," Twidwell said. "Through our partnership with Archive , a technology company that enables brands to launch and scale profitable resale businesses, we'll be rolling out the Second Act program into all of our stores, catering to various consumer preferences by expanding our brand's reach in both online and offline spaces." Meanwhile, secondhand European fashion firm Vinted continued to grow its revenue in 2023 and reached profitability, "outpacing" its planned growth for the year. The Lithuanian-based marketplace reported 61 percent year-over-year growth, netting roughly $19 million. "Secondhand fashion is still a relatively immature market and only a tiny proportion of fashion overall. Our performance in 2023 was not only proof that we can deliver strong growth but that we are at the forefront of a market with huge potential," Thomas Plantenga, Vinted Group's CEO, said. "More importantly, growing [consumer-to-consumer] second-hand fashion is an impactful way to mitigate the harm of the fashion industry and the reason behind our mission to make second-hand the first choice." The resale site attributed its growth to multiple factors: a "continued increase of penetration" in existing markets, geographic expansion into Denmark , Finland and Romania, continued expansion into luxury fashion through verification and the development of shipping services with Vinted Go. "During 2023, our core marketplace performed strongly, we accelerated the development of delivery services with Vinted Go, and we made steps into the payments part of our value chain. For 2024, we will continue on this mission, delivering against multiple growth vectors including geographic expansion and category development," Plantenga said. "We see many opportunities ahead, so we'll continue to balance profitability against investment opportunities to accelerate towards our mission."