This week, a look at the resellers pushing against the imposition of sales tax on secondhand goods. Also, designers Rachel Antonoff and Alexandra Korn discuss their NYFW experience and future collaborations.
Against a resale tax
The secondhand fashion industry has considerably grown up over the last five years. Platforms like The RealReal and Fashionphile have become major players in the industry, A-list celebrities like Jessica Chastain have endorsed secondhand fashion, and even luxury brands like Burberry have worked directly with resale platforms.
Now, the next step of the resale sector’s maturation is here: legislation and regulation. American Circular Textiles, a coalition of fashion and textile companies dedicated to the progression of resale, launched a petition this month to end the imposition of sales tax on secondhand purchases. Currently, many states require sales tax to be paid on secondhand goods, even though, in theory, sales tax has already been paid on the item when it was sold the first time.
Among resale professionals, this has long been a pain point.
“Not collecting sales tax would have an immediate [positive] impact on our business,” said Charles Gorra, founder and CEO of Rebag, speaking to Glossy in March. Rebag is not part of ACT. “Right now, our options are to either keep prices flat and pay the sales tax ourselves, or pass it on to the consumer.”
Not only would ending sales tax on secondhand goods help the resellers, but it would also be beneficial to consumers, said members of ACT.
“Consumers’ pocketbooks are stretched thin,” said ACT founder Rachel Kibbe, citing statistics from Empower showing that consumer spending on footwear and apparel has risen 72% since 2020. “Ending double taxation is not only the fair and just thing to do, but it will also spur economic growth and strengthen the trend toward shopping for well-made clothing that can be reused and/or repaired rather than tossed into the ever-growing piles of apparel waste.”
The news of the petition comes six months after the announcement of the Americas Trade and Investment Act, a bipartisan bill aimed at shoring up trade agreements between the countries of North and South America. That bill would include billions in incentives for circular consumer programs including resale platforms.
The luxury sector has benefitted from the democratizing aspect of resale, according to Fashionphile founder Sarah Davis. Because of resale’s lower entry point to luxury brands, younger customers have a chance to be introduced to those brands and eventually graduate to buying bags new.
“When I was in high school, we kind of looked down on Louis Vuitton bags,” Davis said. “It was like your grandma’s bag. But now that has totally changed. But resale, eBay, consignment shops, all of that has made the audience for luxury goods much more diverse across age and socioeconomic status.”
Rachel Antonoff and Susan Alexandra have more collaborations in store
Designers Rachel Antonoff and Susan Korn, founders of their eponymous brands Rachel Antonoff and Susan Alexandra, held their first joint fashion show together, at New York Fashion Week on September 6. The event was a raucous affair — a combination fashion show and dog show that saw celebrities like Alison Roman and Sandra Bernhard walking adoptable dogs down the runway. The audience was also star-studded, including Antonoff’s brother, the musician Jack Antonoff, and Paramore singer Hayley Williams
The show was unique in that two separate designers’ styles were on display. It helps that the two brands are making different products. Antonoff’s work is mostly in clothing and ready-to-wear, while Korn makes accessories — her dog-themed “Barkin’ Bag” was worn on the runway.
And it’s a partnership that will continue. Speaking to Glossy after the show, Antonoff and Korn said the event’s positive reception was confirmation that they’d continue working together in the future.
“As they say in the rescue world, we’re a bonded pair now,” Antonoff said. “I don’t think we can separate. We’re imprinted on each other.”
It’s also not the last time either brand will involve animals. Antonoff recently collaborated with the canine lifestyle brand Little Beast, and Korn is considering collaborating with the same brand. And even when they’re not collaborating with animal brands directly, Korn said the pair, who are both animal lovers, will likely include animals in their shows in the future.
“I don’t think we could do normal show anymore,” Korn said. “It would be easier in some ways, but it’s not possible for us. There are more dogs in our future.”
More Glossy NYFW coverage
The Jacquemus effect: Bags are the big story of NYFW as more designers place bets on their potential
NYFW designers are embracing versatility to keep the aspirational customer
John Varvatos makes its return to NYFW with new leadership and a new vision
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