How Big is the Children’s Resale Clothing Opportunity?
Help parents save on clothing their kids with the Kid to Kid Children’s Resale Clothing opportunity
Every parent will tell you that their children are the biggest source of joy in their lives — and if they’re being honest, they’ll also tell you how expensive it is to raise them. For young parents especially, the costs associated with keeping growing kids in cute clothes add up. That makes the children’s resale clothing opportunity a big business.
Kids grow faster than paychecks.
According to CreditDonkey, the average family spends $2,440 (3.8%) of their $64,175 income on clothing. And the Bureau of Labor Statistics tell us that over $230 is spent per child at the beginning of each school year.
For growing families, becoming budget-minded is a must — and this explains why the resale industry is overtaking fast-fashion for the first time ever. In fact, Fortune1 reports that “the fashion resale market is exploding, growing 21 times faster than the retail market over the past three years, according to research from retail analytics firm GlobalData.”
Millennial parents want a sustainable way to shop
According to Bustle, millennials thrift more than any other generation by a long shot, and for exactly the reasons mentioned above: they want to save money, and they’re aware of the damage fast-fashion causes to the environment.
“77 percent of millennials want to buy from environmentally-conscious brands. They’re also more likely to switch to thrifting for environmental reasons, compared to other generations,” the publication reports. “The mindset is paying off for more than just millennial wallets, too. When the generation that buys clothing changes how it thinks about shopping, magic happens. Vogue editor Emily Farra writes that ‘fashion is the second-most polluting industry in the world, surpassed only by petroleum.’ ThredUp found that the life of an item is extended by 2.2 years if sold secondhand, which reduces the carbon footprint by 73 percent.”
Kid to Kid owners benefit from high margins and an evergreen customer base
Beyond Kid to Kid’s little pink doors, there is a shopping experience that doesn’t feel like resale at all. Our stores are aesthetically appealing, highly organized and if it weren’t for the low prices of up to 70% off retail, customers would have no idea they were in a resale store.
Because there will always be new parents, the market for Kid to Kid is constantly renewable — and because we outfit children from birth to through age 12, our franchise owners enjoy a long relationship with their customers. Most important of all–at Kid to Kid customers can cash in on the items their kids have outgrown. That enables them to stretch their budgets, help save the environment, and support the local economy — all at the same time.
Of course, Kid to Kid wouldn’t be in business if our franchise owners weren’t profitable, and over 27 years, we’ve proven that owning a Kid to Kid can be financially rewarding.
“Our franchise owners enjoy average gross margins of 65%, which is unheard of in the retail space,” says Scott Sloan, CEO of Kid to Kid. “We’ve worked hard to develop a model that is profitable and scalable. Since most of our franchisees have never worked in retail, let alone resale, our world-class platform supports every aspect of their business, starting from day one. When our franchisees are successful, we’re successful.”