Purpose

The purpose of this project is to explore and analyze the transformative role of logistics within the evolving landscape of re-commerce. With significant growth in the secondhand fashion market in recent years, the digital transformation of secondhand retailing presents an exciting and constantly evolving field with immense growth potential. In light of impending Extended Producer Responsibility (EPR) legislation, which emphasizes the need for separate textile collections by 2025, and demands for increasing reuse rates, the secondhand fashion market is poised for future growth. Diversifying sales channels to cater to different consumer segments and generating alternative revenue streams is of paramount importance in this evolving landscape. Re-commerce has the potential to catalyze broadening consumer markets for secondhand fashion, however, a systematic approach to arranging resources and capabilities is crucial for the successful adoption of re-commerce. In this context, understanding the multifaceted logistics implications of integrating re-commerce is paramount to harnessing the sector’s full potential in online retail to drive profitability.

Expected Results

This project primarily aims to assess the logistic capabilities and resource configurations necessary for the successful integration of re-commerce within the operations of secondhand fashion retail. Focusing on Swedish secondhand fashion retailers, this project seeks to investigate their logistical strategies in adopting re-commerce practices. The key contributions of this project include deepening the understanding of the critical resources and capabilities pivotal for establishing and sustaining robust re-commerce logistics in secondhand fashion retail. Furthermore, the project aims to discover best practices that drive the efficacy of re-commerce logistics. The results of this project are poised to advance the understanding of how the digital transformation of secondhand business models can contribute towards embracing circular economy.

Planned approach and implementation

This project integrates two theoretical frameworks: the Resource-Based View (RBV) and the Dynamic Capability View (DCV). While RBV provides a robust basis to explore how firms combine and reconfigure their resources to achieve a competitive edge in re-commerce operations. Meanwhile, DCV contributes to the understanding of firms’ capabilities in identifying opportunities and reconfiguring their resources for a successful transformation to e-business models. Together, these theories provide a solid foundation to achieve the project’s objectives.

Spanning two and a half years, the project comprises three phases. The initial phase involves conducting interviews with industry partners to explore the current landscape of re-commerce, the driving forces behind this evolution, and the challenges and limitations faced by firms. Building on the findings of the first study, the second phase focuses on exploring the critical resources and capabilities essential for operating re-commerce platforms. In the final phase, the project aims to develop a practical framework to facilitate the assessment of logistics-related resources and capabilities essential in re-commerce operations to drive profitability.