Secondhand gifts are cool now + indie brands' survival hacks

It’s Tuesday!

UK Christmas ad spend is set to hit a record £10.5bn, with brands ditching traditional TV for online and social ads, while supermarkets double down on storytelling campaigns.

Updates ☕️

🔍 Threads enhanced search, video viewing, and trends features to improve content discovery and user engagement.

📩 Snapchat launched inbox ads, raising questions about user experience while offering new ad revenue potential.

📦 Supply chain execs report 62% worry about holiday inventory shortages, prompting increased in-store stock and last-minute order strategies.

Secondhand gifting is on the rise

Secondhand holiday gifting is losing its stigma. According to a new survey from resale platform OfferUp, 74% of shoppers now find it socially acceptable to gift pre-loved items—a 7% jump from last year. Even better? Most people (83%) say they’d be happy to receive a secondhand gift themselves.

The rise of preloved presents: The shift isn’t just about sentiment—people are acting on it. Nearly 68% of respondents said they plan to buy used gifts this holiday season. Gen Z is especially on board, with 83% planning to shop secondhand for gifts. Electronics are the most popular category (55%), followed by sporting goods (47%) and furniture (42%).

Funding the holidays, secondhand style: For many, secondhand gifting isn’t just thoughtful; it’s practical. About 36% of respondents said they’ve sold their own items online—or plan to—to bankroll their holiday shopping. Among Gen Z, that number jumps to 53%.

OfferUp’s CEO Todd Dunlap captured the mood: “Pre-owned items are no longer just a practical choice—they’re now a preferred option for many, offering a way to give memorable gifts while being mindful of budget constraints.”

What it means for brands: As resale continues to grow, brands and retailers might want to embrace the circular economy by offering trade-in programs or partnering with resale platforms. With more shoppers seeing the value in secondhand, this trend isn’t slowing down anytime soon.

Why independent brands are rethinking retail

The retail shake-up is real. With Matches shutting down and Farfetch barely avoiding bankruptcy, indie brands are questioning how to balance wholesale and direct-to-consumer (DTC) strategies.

The risks of wholesale: Wholesale can offer visibility but comes with risks. Major retailers like Matches left brands unpaid—some owed tens of thousands—while orders from others can be inconsistent. Knitwear designer Henry Zankov says, “You can’t put all your eggs in one basket.”

DTC’s appeal: Selling direct gives brands control over profits, packaging, and customer relationships. Priya Ahluwalia values the data DTC provides to guide collections but notes it’s tough to get noticed without a big advertising budget.

Blending strategies…

The ideal mix? Both. Wholesale introduces brands to new audiences, while DTC builds loyalty and keeps profits higher. Designers like Zankov are also exploring creative ways to connect, like hosting archive sales in casual spaces to foster community.

The takeaway? Be selective. Focus on the right retailers, build a strong DTC presence, and stay flexible. As Anya Hindmarch puts it, “Hold a close, direct relationship with your customer.”

How retailers are fighting the $743 billion returns problem

Returns cost U.S. retailers $743 billion in 2023. From charging fees to outright banning serial returners, brands are getting tougher—and more creative—in handling the fallout of lenient return policies.

Banning serial offenders: Retailers like Target and REI are cracking down on repeat offenders, banning customers who abuse return policies. It’s a response to the $101 billion lost to fraud in 2023, but the move isn’t without its risks—getting it wrong could alienate loyal customers.

Charging for convenience: Zara, H&M, and even TJ Maxx are charging return fees for online purchases. The strategy recoups costs but risks souring customer loyalty. With retail loyalty already fragile, it’s a gamble.

Keep the item, get a refund: Amazon’s “just keep it” policy refunds certain items—under $75 or hard-to-ship goods—without requiring a return. It’s convenient for shoppers but raises questions about sustainability and waste.

Designing returns out: Experts like Tony Sciarrotta of the Reverse Logistics Association suggest smarter solutions: designing products to minimize frustration and prevent unnecessary returns in the first place.

As the cost of returns continues to rise, retailers are sending a clear message: the free-for-all days are over.

NOTES 📝

Today’s top marketer & brand reads.

Read: How a second Trump presidency could impact the ad industry - AdAge

Creative: 8 brands capitalizing on the $6.2 million duct-taped banana - AdAge

Guide: TikTok shares holiday marketing tips - TikTok

Charts: 5 charts on affiliate marketing: Marketers face mixed priorities - eMarketer