Feasibility Analysis of ReLoom's Expansion into the
Indian Secondhand Clothing Market
Introduction:
The aim of this analysis is to assess the feasibility of ReLoom, an online thrift store, expanding
into the Indian market. The Indian secondhand clothing industry has seen significant growth due
to increasing consumer awareness of sustainability and affordability. This assessment will consider
the target market, analyze the feasibility of market entry, and propose an implementation strategy
for ReLoom.
Assessment of the Target Market:
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Market Size and Growth Potential: India has a large population, a growing middle class,
and an increasing disposable income, making it an attractive market for secondhand
clothing. According to research, the Global secondhand clothing market is estimated to
grow at a CAGR of 15 to 20% over the next five years, reaching a value of $77 billion by
2025 (source: The Consumers Behind Fashion’s Growing Secondhand Market report).
Consumer Behavior and Preferences: The Indian market for secondhand clothing is
influenced by cultural, socio-economic, and fashion trends. It is important to consider the
cultural acceptance of secondhand goods, the inclination towards sustainable fashion, and
the preference for affordable yet high-quality products. Conducting market research,
surveys, and analyzing competitor data can provide insights into consumer behavior.
Competition Analysis: On assessing the existing players in the Indian secondhand
clothing market, their market share, business models, pricing strategies, and customer
base. The key competitors are Meesho, Coutloot, Zapyle, LabelCentric and their
strengths are that they have been working in the Indian Markets since a long time and
have a loyal customer base. Their weakness includes the quality of apparel listed on their
websites which are not liked by most customers in India.
Feasibility Analysis of Market Entry:
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Regulatory and Legal Factors: Understanding the legal and regulatory environment
related to e-commerce, retail, and the secondhand clothing industry in India. Analyzing
the requirements for foreign companies to enter the market, such as licenses, permits,
taxation, and compliance. Consultation with legal experts will ensure compliance with
local regulations.
Operational and Logistical Considerations: On evaluating the logistics and supply chain
infrastructure in India, including warehousing, inventory management, order fulfillment,
and last-mile delivery. Partnering with local logistics providers or establishing fulfillment
centers can help streamline operations.
Technological Readiness: India has a great digital infrastructure and online shopping
penetration. The accessibility and usage of e-commerce platforms, payment gateways,
and digital marketing channels is above the required levels. Customizing the online
platform for the Indian market and ensuring seamless user experience will be crucial for
success like including other languages of India on the website and the mobile app.
Implementation Strategy:
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Market Entry Approach: Based on the feasibility analysis, the most suitable market entry
approach for ReLoom. Options include partnering with local retailers, establishing an
independent online presence, or utilizing existing e-commerce platforms. Considerations
should include cost-effectiveness, market reach, and brand positioning.
Marketing and Branding Strategy: Develop a comprehensive marketing and branding
strategy to establish ReLoom's presence in the Indian market. This should include online
and offline advertising, social media campaigns, influencer collaborations, and targeted
promotions. Tailoring marketing messages to resonate with Indian consumers'
preferences for sustainability and affordability will be essential.
Localization and Cultural Sensitivity: Adapt ReLoom's offerings, website, and marketing
materials to suit the Indian market. Consider aspects such as regional diversity, language
localization, and cultural sensitivities. Engaging with local communities, NGOs, and
influencers who promote sustainable fashion can enhance brand credibility.
Partnership and Collaboration: Explore strategic partnerships with local manufacturers,
NGOs, and influencers to strengthen ReLoom's position in the Indian market.
Collaborations can involve sourcing high-quality secondhand goods, promoting
sustainability initiatives, and organizing events or campaigns that resonate with Indian
consumers.
Conclusion:
Based on the assessment of the target market and the feasibility analysis, it is recommended that
ReLoom moves forward with its expansion into the Indian secondhand clothing market. The
growing market size, favorable consumer behavior, and ReLoom's commitment to sustainability
create a favorable environment for success. By implementing a well-defined strategy that
considers local factors and leverages partnerships, ReLoom can establish a strong presence and
capture a significant share of the Indian secondhand clothing market.
Sources:
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The Consumers Behind Fashion’s Growing Secondhand Market report on the Indian
secondhand clothing market growth by Vestiaire Collective and Boston Consulting
Group (BCG) (https://www.bcg.com/publications/2020/consumer-segments-behindgrowing-secondhand-fashion-market)
Market research data from reputable sources
Competitor analysis reports
Consultation with legal experts and logistics providers