What is Thrifting Business, Prospects and How to Start It

Thrifting, a term increasingly popular among modern consumers, refers to the practice of buying and selling used goods, especially clothing, as part of a sustainable lifestyle.

This concept is not just about finding items at low prices; it's about reducing waste, supporting the circular economy, and changing the way we view consumption.

Thrifting Business Prospects

Market Trends and Growth

The thrifting business has experienced rapid growth in recent years. Key factors driving this growth include increased environmental awareness and shifting consumer values, especially among millennials and Gen Z, who tend to seek uniqueness and sustainability in their fashion choices.

It is estimated that the used goods market will continue to grow, with a projected value of billions of rupiah in the next few years.

According to data from the Directorate General of Customs and Excise, during 2022, law enforcement actions against illegal imports of used clothing resulted in enforcement goods (BHP) with an estimated value of IDR 23,91 billion. This value is obtained from 220 enforcement actions called 'ballpress'.

This figure shows an increase compared to the previous year, where there were 165 actions with a BHP value of around IDR 17,42 billion. This indicates increased activity in handling illegal imports of used clothing by customs authorities.

Environmental Impact

The thrifting business has a significant positive impact on the environment. By reducing the need for new clothing production, thrifting helps lower carbon emissions and water use, as well as reducing the amount of clothing waste that ends up in landfill.

Starting a Thrifting Business

Determining Niche and Target Market

Before starting, it's important to determine a specific niche: whether it's vintage clothing, designer items, or general merchandise. Understanding the target market is also crucial, whether it is teenagers, young professionals or sustainable fashion lovers.

Goods Sourcing Strategy

Finding sources of good quality used items is key. This can be through donations, purchases from thrift stores, or through direct relationships with local communities. The use of online platforms for sourcing is also becoming increasingly popular.

Marketing and Sales

Leveraging social media and e-commerce platforms can increase visibility and reach a wider market. Building a strong online presence and holding pop-up events are some effective strategies.

Government Regulations

The thrifting business in Indonesia is not completely prohibited, but there are special restrictions regarding the import of used clothing. The Indonesian government, through the Ministry of Trade, has banned the import of used clothing in accordance with Minister of Trade Regulation no. 18 of 2021.

This prohibition includes items such as used bags, used sacks and used clothes. Even though there is an import ban, the practice of thrifting itself, especially for used goods originating from within the country, is not prohibited.

The government is proposing this ban because thrifting is considered to be detrimental to local micro, small and medium enterprises (MSMEs) and has the potential to harm the domestic garment industry.

Conclusion

Thrifting isn't just a temporary trend; it's a paradigm shift in the way we shop and interact with the environment. With a focus on sustainability, thrifting offers a path to a more ethical and environmentally friendly fashion future.

As a business opportunity, thrifting offers great potential, not only in terms of profits, but also in making a positive impact on the world.