The Journey of ZOZOUSED and Its Commitment to Circular Fashion

In November 2012, we launched “ZOZOUSED”, an online website (shop) for second hand/vintage apparel . We handle over 6,500 brands, ranging from casual to high-end, and consistently list about 700,000 items (※1).

The products sold at ZOZOUSED come from items traded-in by customers who have used one of our two types of “Replacement-discount” services (※2). We have established a system that enables the circulation of clothing through our services.

In “ZOZOTOWN”, our fashion e-commerce, we offer both new and used items, providing a shopping experience tailored to our customers' needs.

Moving forward, we plan to utilize our unique position of handling both primary and secondary distribution services. Our goal is to connect the needs of those who want to sell and buy used clothing, thereby expanding the cycle of fashion circulation.

(※1) As of the end of June 2023.(※2) Replacement-discount: A service where customers trading in items previously purchased on ZOZOTOWN receive an immediate discount equivalent to the trade-in value.Anytime Replacement-discount: A service allowing customers to exchange items they have purchased in the past for ZOZO points at any time.(※3) ZOZOTOWN's first foray into handling branded used clothing, starting from November 12th (Monday).(※4) Industry's first Replacement-discount service “Replacement-discount” launched.(※5) In line with ZOZOUSED's 3R Promotion Month, a campaign to enjoy fashion with used clothing will be held from October 21st!(※6) ZOZOUSED opens a pop-up store in Shibuya PARCO! 'LIVE STOCK MARKET with ZOZOUSED' to be held from April 28th."

The Sustainable System of “Replacement-discount”

The fashion industry is facing a significant issue with mass disposal, but our “Replacement-discount” service, offered on ZOZOTOWN, creates a system that circulates clothing, helping to reduce the disposal of fashion items.

Most items that cannot be resold on “ZOZOUSED” are purchased by multiple clothing buying companies that ensure appropriate processing. These items are generally sold on domestic e-commerce platforms and in stores.

In addition, when collecting trade-in items from customers through the “Replacement-discount” service, we encourage the use of ZOZOTOWN's original non-woven fabric reusable bags, which can be used repeatedly.

Reference Link
The Sustainable System of ZOZOUSED

Promoting the Circular Economy in Fashion through the Use of AI
By utilizing AI to set buying and selling prices, we strive to offer the most beneficial evaluations to our customers, thus promoting the circulation of fashion.

Sales Price Prediction Model	By analyzing past handling information and sales performance, we accurately predict appropriate prices. This is used for calculating purchase prices in “Replacement-discount” and listing prices on “ZOZOUSED” (pricing accuracy has improved by 1.5 times).
Instant-Sale Determination Model	Just before listing on “ZOZOUSED”, this model sets the optimal price at that moment (increasing both sales and purchase prices).
Weather Merchandise Distribution (Weather MD)	Optimizes the timing and quantity of seasonally strong fashion items. Utilizing weather information, past sales and listing performance, this model predicts and optimizes demand for that period (reducing unsold inventory of forecasted products by 4%).

LIVE STOCK MARKET with ZOZOUSED
ZOZOUSED hosted a pop-up store, “LIVE STOCK MARKET with ZOZOUSED”, from April 28 (Fri) to May 14 (Sun), 2023, at Shibuya PARCO. This initiative was part of the event “LIVE STOCK MARKET IN SHIBUYA”, organized by the select shop “EDISTORIAL STORE”, which handles deadstock products from brand warehouses. ZOZO participated in this event, showcasing the sustainable “circular fashion” realized by ZOZOUSED in a physical setting. Customers enjoyed shopping for circular fashion at a discount with coupons given for purchasing ZOZOUSED products or contributing to clothing collection.

Reference Link:ZOZOUSED Opens Pop-up Store at Shibuya PARCO! “LIVE STOCK MARKET with ZOZOUSED” Starts on April 28

Over the past approximately 10 years since its inception, ZOZOUSED has been making improvements to provide better services to our customers, which has also contributed to reducing environmental impact. By redistributing items collected from customers through ZOZOUSED, we have been able to prevent CO2 emissions that occur from the production to disposal and incineration of newly manufactured items. Assuming this, since the start of the service, we have cumulatively reduced CO2 emissions by about 140,000 tons (※1). Additionally, the CO2 emission reduction achieved in the fiscal year 2022, when converted to the absorption capacity of Japanese cedar trees, is equivalent to approximately 1.3 million trees (※2).

(※1) From November 2012 to March 2022. Assumes prevention of CO2 emissions from the production process to disposal and incineration of newly produced items. The number of collected items was converted to weight (source: Ministry of the Environment, “Sustainable Fashion – Fashion for the Future”) and multiplied by the CO2 emissions per kilogram of item (source: Ministry of the Environment, “Method of Calculation for 3R Unit Value”).
(※2) Assuming that one Japanese cedar tree absorbs about 14 kg of CO2 emissions (source: Kanto Regional Forest Office, Carbon Dioxide Absorption Capacity of Forests).

So far, the number of users (reuse experience holders) who have used the ZOZOUSED service has reached approximately 17 million since the service began (※). We will continue to promote circular fashion by increasing the number of users with reuse experience.

(※) From November 2012 to March 2022. The definition of a user with reuse experience includes purchasers of ZOZOUSED service products, users of the Replacement-discount service, and users of the regular purchasing service.

[Thoughts from the Person in Charge]
ZOZOUSED, which started in 2012, has now entered its 12th year. At the time, the concept of “buying and selling used clothing online” was still relatively unfamiliar, but now it is perceived as a convenient and sustainable way to enjoy fashion. Recently, there has been an increasing interest in reuse, not only in the charm of used clothing itself but also in the growing desire to cherish and wear a single item for a long time. Utilizing ZOZO's strengths and assets in AI and data, we aim to solve more environmental issues by getting more customers to use “ZOZOUSED” and “Replacement-discount."