The second-hand market could reach R$78 billion in Brazil in the next three years, according to a study by the Boston Consulting Group (BCG). Globally, the circular fashion market is expected to reach US$350 billion by 2028 and represent 10% of global fashion by 2025, according to the Resale Report from ThredUp, an American online consignment platform.
The reuse of clothing items is one of the trends observed in the country and BCG research, commissioned by Enjoei, the largest e-commerce of used items in Brazil, reveals that the offline market (physical stores) is four times larger than the digital one and should generate R$58 billion in Brazil by 2027. “The increase is driven by growing consumer awareness about the impacts of the fashion industry on the environment and the search for more sustainable alternatives”, says Joel Queiroz Junior, COO
Therefore, Enjoei believes that expanding from virtual to physical makes perfect sense and announces a plan to open stores with 300 units over the next three years, through a franchise model. The project begins in the states of São Paulo, Rio de Janeiro and Belo Horizonte and there are already three stores open. The first of them, in Vila Madalena, in operation since April this year, has higher revenue than initially expected.
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According to the executive, physical stores help reinforce Enjoei’s pioneering spirit in the circular economy and break the fashion cycle. “We are pioneers and leaders in this change in consumer behavior and the expansion into physical retail is important for the company’s strategy as it allows us to reach new audiences and consolidate the brand as a leader in the circular fashion market in Brazil”, he states.
With more than one million active buyers and one million sellers on the platform, Enjoei surpassed R$1 billion in sales in 2023 and will expand business with the help of franchises in the physical environment. The project is designed for street stores measuring 200 to 300 m2, with 8 to 12 employees, and an initial investment starting at R$650,000.
“The model provides for the operation of the physical store by the franchisee, with support and training from the franchisor, which provides exclusive pricing and management tools. The entire design was made based on 15 years of online buying-selling experience”, says Queiroz.
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Franchisees will also have support in choosing a store location using the platform’s customer database. Furthermore, the model stands out for its differentiated inventory management, which in addition to other technologies, will use its own exclusive pricing platform.
Physical stores will also follow the concept of circular economy and sustainability, with a
curating unique and diverse pieces. “The focus of sales is used products, making fashion circulate”, says the COO. He also highlights that all products are exclusive. “Each item is a unique opportunity”
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The most sought after brands on the platform, which will also be for sale in physical stores, are Zara, Farm, Le Lis Blanc, Nike and Adidas. To guarantee the products, the stores’ buying and selling process is simple and agile, both for the franchisee and the consumer: people who want to sell used items in good condition take them to the stores to have their parts sorted, which will be evaluated by the screening team. Payment for items is made instantly, via PIX or credits that can be used in the store itself.
The expansion into physical retail is part of Enjoei Group’s growth strategy that began last year. In 2023, the group announced the purchase of a 25% stake in Cresci e Perdi, the largest franchise network of used children’s products in the country, with full purchase rights in 2027. “This acquisition brought into the company the expertise and knowledge of physical world. The model of immediate screening and payment in pix/credits on the spot came from this benchmark”, says Joel.
Those interested in opening an Enjoei franchise store can apply via .
