Sustainability is increasingly important to consumers—especially Gen Z and those with a Gen Z mindset. In fact, a whopping 73% of the Gen Z population says they are willing to pay more for products that preserve the environment.
That said, sustainability alone isn't the sole deciding factor in attracting and retaining these conscientious consumers. Gen Z wants more; they want to buy from companies whose core values resonate with their own.
Dipanjan Chatterjee, Vice President and Principal Analyst at Forrester, underlines this point, stating, “Even among Gen Z, which is the most values-motivated generation, an appeal to social values like the environment is not sufficient by itself to influence purchase. Factors like quality and price play a significant role in shaping demand.”
Innovative entrepreneurs like the Gordon brothers are leading a fashion revolution by aligning ... [+]
So what if consumers could save money on their purchases and feel better about their impact on the planet? BaseCamp, a leading franchisor of clothing resale concepts, is offering just that, and the business model is proving quite successful.
The Fashion Industry's Sustainability Challenge
To understand how values impact the way consumers purchase products, consider how Gen Z buys clothes. According to one study, 64% of Gen Z try to find an item secondhand before buying it new, and they often find success since two out of five clothing items in Gen Z's closets were previously owned by someone else.
However, this shift in consumer behavior is not merely a fashion trend. It's driven by a growing awareness of the fashion industry's environmental impact. The fashion industry is estimated to contribute as much as 92 million tons of waste annually. And clothing waste isn’t the only problem.
The fashion industry has also been slow to move from a “linear economy” to one of circularity, where waste is minimized. This reluctance to adopt sustainable practices has contributed to the rise of thrift stores, as consumers seek alternatives to traditional retail.
Thrift stores have become hubs for eco-conscious shoppers. They offer pre-owned clothing options that reduce waste and resonate with the core values of consumers looking for sustainable fashion choices. They also provide an opportunity for consumers to save money on their purchases, truly adding value.
How BaseCamp Is Revolutionizing Resale
Resale no longer resembles the old “thrift store” model of previous eras, where dated and dusty merchandise may sit cluttered on shelves and racks. By combining a high-quality boutique experience with an operation that continually fuels stores with fresh in-season merchandise, the retail upcycling business not only meets consumer demand but also contributes to the circular fashion economy.
The U.S. secondhand fashion market is expected to more than triple in value to an estimated $80 billion by 2029. Forward-thinking entrepreneurs like brothers Tyler and Zach Gordon are committing to this trend. With backgrounds in finance and investing, they were intrigued when they met the founders of BaseCamp and its brands, Uptown Cheapskate and Kid to Kid.
Unlike conventional fashion retailers, where vendors sell merchandise to stores, BaseCamp and its brands look to consumer sellers as their supply source.
Zach says, “I think about the stuff that sits in my closet that I barely wear. Most people don’t know what to do with their unworn fashion, so they do nothing.”
BaseCamp solves this issue, resonates with customers’ core values, and allows consumers to save and make money. The benefit of upcycling to these consumers is that they can walk out of the store with $50 to $100 in cash, knowing that they’ve taken a small step to reduce waste and help someone else replenish their wardrobe. Or, some shoppers may choose other items from the stores’ inventory at 50% or more below what they would cost in a typical retail store.
BaseCamp's Sustainable Resale Success Is A Replicable Model
According to Zach and Tyler, over 200 million clothing items have traveled through BaseCamp’s ecosystem—20 million articles last year alone. The stores average about 4,000 square feet, and a typical franchisee can generate $1 to 3 million in sales annually. The Gordon brothers take both the consumer and franchisee experiences seriously, looking to create a shopping and business management environment that’s seamless and enjoyable.
This is a great example of considering consumer’s values and how a business can benefit its customers. Luckily, this business model is replicable and gaining popularity. BaseCamp is not the only brand that has committed to fashion circularity. Many thrift, consignment, and resale brands have emerged in shopping centers and online.
The notion of fashion-forward clothing is rapidly being augmented by earth-friendly clothing, with Gen Z mindset consumers leading the trend. With this change, the planet, the economy, and the consumer will all ultimately benefit.
