How Big is the Opportunity?
Helping parents save on clothing their families is big business, and Kid to Kid franchise owners reap the benefits
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 kids in cute clothes and adorable outfits add up.
Kids grow faster than paychecks.
According to The Bureau of Labor Statistics, the average family spends $1,800 on clothing each year, and of that amount, over $230 is spent per child’s clothes for each new school year. According to CreditDonkey, “The average household spends around 3.8% of their income on clothing. Families bringing home the average $64,175 annually spend around $2,440 on clothing per 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, Fortune 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. According to Vogue editor Emily Farra, ‘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
Kid to Kid is unique in that beyond our little pink doors, there is a resale clothing 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, often up to 70% off retail, customers would have no idea they were in a resale store at all.
Because there will always be new parents, the market for Kid to Kid is constantly renewable — and because we serve parents of children from birth to 12, our franchise owners benefit from a long relationship with their customers. In return, Kid to Kid provides a place where customers can sell their items back to us for cash on the spot, which allows them a return on investment on clothing that helps their budgets, makes the local economy stronger and helps the environment all at the same time.
Of course, Kid to Kid wouldn’t be in business if our franchise owners weren’t profitable, and over 25 years, we’ve proven that owning a Kid to Kid can be extremely financially rewarding.
“Our franchise owners enjoy high margins of up to 70%, 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, scalable and easy to run, and in order to help our franchisees thrive, we have a world-class support platform for every single aspect of this business. We know that when our franchisees are successful, we’re successful, and we do everything we can to ensure that they’re successful from day one and every day after.”