02/10/2024 – 17:56
With a good perspective in the pre-owned clothing market, a Brazilian thrift store franchise plans to grow 200% in revenue in 2024. A GlobalData survey released by one of the largest online thrift stores in the United States, thredUp, reveals that the market second-hand clothing is already growing more than retail in general. The forecast is that the sector will reach US$64 billion (equivalent to R$317 billion) in revenue in five years and that, by 2029, it will surpass that of fast fashion.
+Franchise market earns R$240.6 billion and grows 13.8% in 2023, points out ABF
In Brazil, this reality is not very different. According to research by the Gastão Vidigal Institute of Economics, linked to the São Paulo Commercial Association (IEGV/ACSP), in 2022, there was an increase of approximately 30% in the volume of thrift store sales. This number exceeds the revenue recorded in 2021, which reached the mark of R$2.9 billion.
Furthermore, according to data presented by SEBRAE at the beginning of 2023, Brazil was home to 118,778 thrift stores in full operation. This demonstrates a remarkable growth of 30.97% over the last five years.
Riding the wave of this market is Arena Baby, a chain of pre-owned children's clothing franchises. Founded in 2015 by brothers Flávio Thenório and Giovanna Domiciano, the company emerged as an opportunity to sell used children's clothing and items, but which were in good condition. Currently, in addition to this product format, the chain also has new items, in the outlet model, that is, at affordable prices.
For Giovanna, success is linked to two main factors. The first is the new wave of consumers, who seek more conscious consumption, valuing the good of the environment. In this way, bringing new opportunities to pieces that were little used has an even greater meaning.
“More specifically when we talk about babies, the use of children's clothes and items has a very short period of use, after all, every month they grow, their needs change and everything that had been purchased is left behind. With thrift stores, families who cannot afford to buy everything new can benefit by purchasing pre-owned and still high-quality products,” he adds.
Taking this hook, the founder explains that the purchasing power of Brazilians is another factor that influenced this market. In fact, according to the Brazilian Institute of Geography and Statistics (IBGE), the population has lost almost half of its purchasing power in the last 10 years.
Given this scenario, businesses related to thrift stores have gained more space and are developing every year. Arena Baby, for example, recorded revenue of more than R$17 million in 2023, tripling the value compared to 2022. In other words, totaling a growth of 400% between one year and the next. In terms of number of stores opened, the franchise registered 28 units opened.
Thrift store franchise projections for 2024
With high expectations for 2024, Flávio Thenório is optimistic about the future of Arena Baby.
“Based on the development of the network, we are projecting revenue of around R$50 million, with a 160% growth in the number of units”, explains the founder.
In real numbers, Arena Baby intends to open another 87 stores spread across Brazil, of its most diverse models. Even initial investments range from R$130 thousand to R$640 thousand.
“We hope to develop even further, expanding the number of franchisees across the country, with all the support and quality we offer. Furthermore, we are open to collabs with retail brands, as we also have lines of new pieces. We are going with everything in this new year and we intend to further improve our operational processes”, concludes the executive.
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