My wife was just telling me about Canada Goose’s “Generations” program where you can trade up to a pre-owned parka, bomber or vest.
In exchange, you get a gift card to use for your next one.
At first, it seemed a bit counter-intuitive. Why would a luxury brand want to get into used goods?
But this is not a pure sustainability play, or underwhelming conscience-washing like SHEIN’s textile-recycling donation I wrote about yesterday.
It’s more about brand protection. Every certified pre-owned Canada Goose jacket is:
- Authenticated (fighting all those counterfeits)
- Professionally restored
- Guaranteed genuine
- Fresh and ready for its next adventure
Apple‘s been doing a version of this for years. So has Patagonia with its Worn Wear program that I mentioned yesterday.
While luxury brands used to FEAR the secondary market, some innovative ones are now working to OWN it.
The strategy makes tons of sense. It helps you:
- Control your aftermarket
- Keep customers in YOUR ecosystem
- Fight counterfeiters
- Support premium pricing
- Extend brand loyalty
That Canada Goose gift card brings previous owners back into the fold, rather than moving to Arc’teryx, Moose Knuckles, Moncler or one of many other high-end competitors circling in the waters.
When your customer is ready to upgrade, they’re already in YOUR store, with a gift card that only works there.
In I Need That, we explore the challenge it is for new product brands to build trust and status. A certified pre-owned Rolex is not only more affordable but guaranteed authentic in a world of increasingly sophisticated fakes.
Other brands winning at this include Levi’s SecondHand denim, REI‘s Used Gear program, Ikea‘s furniture buyback and Nike Refurbished shoes.
Action for today: How could your product support a second life? Maybe the best new revenue stream can be giving old products new homes.
Laurier
Product Payoff: In 2019 when The RealReal went public with its business reselling designer clothes, luxury brands fought it tooth and nail. Now Gucci partners with them. Could your own biggest perceived threat become YOUR best new opportunity?