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  • Writer's pictureHarry Riley

Debunking The Myth Of Cannibalisation In Retail

Updated: Jun 27

sustainable fashion brand clothing

In the ever-evolving world of retail, there has been a lingering concern about how resale could potentially cannibalise new retail. However when we look at the data, this is not actually the case. It challenges preconceived notions and positions resale as not just a viable option but also a strategic advantage for brands. In this blog, we will delve into the untapped potential of embracing pre-loved and reveal how it not only defies the myth of cannibalisation but also propels brands towards sustainable growth and heightened customer engagement.

One of the ways that Continue drives profitability for brands is through our innovative credit scheme. With our credit scheme, brands actually stand to profit directly from the resale of their items. Here’s how it works:

Customer Sells a Product

Let's say a customer sells a dress on your white label platform for £50.

They Choose Store Credit

Instead of receiving cash, the customer opts for store credit, as you offer an additional incentive, say 15% extra. They get £57.50 in store credit.

Brand Receives Revenue

As the brand, you receive the full £50 from the sale.

Customer Reinvests Store Credit

The customer, now with £57.50 in store credit, decides to shop from your store, spending, for example, £100 (industry standard is 2-3x).


In this scenario, the net revenue to the brand is now £42.50:

£50 (additional revenue) - £7.50 (cost of store credit) = £42.50 net revenue

When it comes to the efficacy of store credit, the numbers speak for themselves. Compelling industry statistics highlight the undeniable benefits that store credit brings to both businesses and customers alike. Firstly, on average, customers have shown to use store credit for purchases up to 2.5 times its initial value, which demonstrates the increased spending power that store credit provides. By offering customers the option to pay with store credit, businesses can encourage them to make larger purchases and ultimately increase their revenue.

Furthermore, a staggering 47% of resale customers return within a month for new purchases after using their store credit, highlighting the heightened customer loyalty it inspires. By providing customers with an incentive to return through store credit, businesses can foster long-term relationships and create a loyal customer base.

Reaching New Demographics

By tapping into the second-hand market, brands have the chance to attract a new segment of customers who may have been previously hesitant to purchase products at full price. Many consumers are actively seeking more affordable alternatives or unique items that carry a certain charm and character.

This broadens brands’ reach beyond traditional buyers and provides an avenue to capture a wider audience. By embracing the second-hand market, brands can cater to the needs and preferences of budget-conscious consumers who are actively seeking cost-effective options. This not only allows them to capture a wider audience but also helps in building brand loyalty among those who appreciate the value and sustainability that comes with purchasing pre-owned items.

Increased Brand Visibility

When customers explore the Continue marketplace, they will stumble upon brands they may not have encountered otherwise. This exposure presents an opportunity for these brands to showcase their products and establish a connection with a brand new customer base. As customers delve into this realm, they are more likely to learn about these brands and gain insights into their offerings.The expanded exposure that comes from being present in both primary and secondary markets creates a ripple effect on brand visibility.

As interest grows among consumers who discover these brands through the secondary market, demand for new products tends to follow suit. This increased curiosity fuels greater interest in exploring what these brands have to offer beyond just second-hand options.

Enhanced Customer Loyalty

In today's consumer-driven world, brands that prioritise customer satisfaction and loyalty are the ones that truly stand out. By offering a platform for customers to resell their products, brands are not only providing a practical solution but also fostering a sense of trust and loyalty among their customer base.Allowing customers to resell their products through Continue is an opportunity for them to recoup some of their investment when they no longer need a particular item.

This added benefit not only helps customers financially but also creates a positive experience that leaves a lasting impression. It shows that the brand understands and values the needs of its customers beyond just the initial purchase.This sense of loyalty is further strengthened as customers see how the brand actively supports them throughout their ownership journey. By providing an avenue for resale, the brand acknowledges that customers' needs may change over time and aims to provide options that align with those changing circumstances. This level of flexibility resonates with customers, reinforcing their trust in the brand's commitment to their satisfaction.

Sustainable Brand Image

In today's world, the demand for sustainability and conscious consumption is on the rise. According to Forbes, approximately 40 percent of shoppers are increasingly opting for second-hand purchases or renting items instead of buying new. Consumers are becoming increasingly aware of the environmental impact of their choices and are seeking ways to make more responsible purchasing decisions.

This is where embracing resale becomes crucial for brands.By actively participating in the resale of their products, brands can align themselves with this growing demand for sustainability. Facilitating the resale of products not only benefits the environment but also enhances a brand's reputation as an environmentally responsible company. Consumers appreciate companies that take proactive steps towards reducing their impact on the planet.

By embracing resale, brands demonstrate their commitment to sustainable practices and show that they care about both their customers and our planet.


Dispelling the myth of cannibalisation, delving into the second-hand market not only offers numerous benefits but also reshapes the narrative around the relationship between resale and new retail. Contrary to fears, embracing pre-loved emerges as a strategic move that can amplify overall sales performance.

With credit schemes, brands stand to profit directly from resale transactions, turning each item sold on the secondary market into an opportunity for profit and future purchases.

Additionally, customers engaged in resale are more likely to invest in new products later on, dismantling the misconception of cannibalisation. It also provides a gateway to attract a new segment of customers who may have hesitated to make full-price purchases, expanding their reach and captivating a broader audience.

Simultaneously, having products available in both primary and secondary markets not only increases brand visibility but also cultivates long-term advocates. By actively fostering customer loyalty and trust through the facilitation of resale, brands align seamlessly with the growing demand for sustainability. Embracing this innovative approach not only challenges conventional notions but transforms each resale into a valuable asset for brands' growth and sustainability.‍

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