2024-11-20 20:12:00
Guest of RTL info Signatures, Thierry Smets, the general director of Petits Riens, spoke of the major financial difficulties encountered by his non-profit organization.
With more than 50 million downloads, the Vinted application is well known to the general public. It allows its users to sell their clothes (or other objects) which they no longer need. The application therefore encourages second-hand consumption, but happily walks in the footsteps of the non-profit organization “Les Petits Riens”.
Created in 1937, the association carries out activities of collecting, sorting and selling various second-hand objects to finance its social activities. But business is bad. Today, “Les Petits Riens” is recording a deficit of several million euros. A consequence of this sad observation: 21 layoffs will take place.
Until recently, 20% of the clothes collected by “Les Petits Riens” were resold in their stores, a percentage which has fallen to 6 or 7% today.
Among the factors explaining this financial crisis, Thierry Smets points to two elements. First of all, “fast-fashion which is this fashion for disposable clothing which is developing more and more and which brings an absolutely phenomenal number of first-hand clothes to the market. These are clothes that are very low priced, but also of very poor quality. Some of these clothes are designed to last three or four wash cycles before being thrown away. In our clothing bubbles, we collect more and more merchandise that we know absolutely nothing about“, he laments.
Secondly, although the market for second-hand clothing has expanded very widely and reaches a much wider audience than a few years ago, the appearance of applications and second-hand sales sites is competing with “Small Nothing.” “Vinted is one of our competitors. This is an additional difficulty factor with fast fashion. There is more and more competition, from well-organized private groups. People prefer to sell their clothes on the app rather than put them in our bubbles.”
Faced with this reality, the non-profit organization has no choice but to find solutions if it wants to continue its activities. “This challenges us to adapt to this competition and for us to review our customer experience within our stores. Perhaps also highlight the fact that when you buy a piece of clothing in one of our stores, you also participate in financing the social actions of Petits Riens.”
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How does competition from fast fashion and platforms like Vinted impact the operations of Les Petits Riens?
**Interview with Thierry Smets**
*General Director of Les Petits Riens*
**Interviewer:** Thank you for joining us today, Thierry. It seems Les Petits Riens is facing some significant financial challenges. Could you elaborate on the current situation?
**Thierry Smets:** Thank you for having me. Yes, unfortunately, we are dealing with a substantial deficit, amounting to several million euros. As a consequence, we’ve had to announce 21 layoffs, which is a distressing decision for our organization.
**Interviewer:** That’s quite alarming. What factors do you believe have contributed to this financial downturn?
**Thierry Smets:** There are two main challenges. Firstly, the surge of fast fashion has drastically changed the landscape. These companies churn out low-cost, low-quality clothing designed for short-term use, flooding the market with new apparel. It’s becoming increasingly difficult for us to compete against garments that are cheaper and often marketed as disposable.
**Interviewer:** How has this affected the collection and resale of second-hand items for Les Petits Riens?
**Thierry Smets:** The impact has been stark. Until recently, we were reselling about 20% of the clothes we collected in our shops. That percentage has now plummeted to only around 6 or 7%. The shift in consumer behavior towards buying new, cheap clothes rather than donating or purchasing second-hand is a significant issue for us.
**Interviewer:** You also mentioned competition from platforms like Vinted. Can you explain how that affects your organization?
**Thierry Smets:** Certainly. While the market for second-hand clothing has grown, platforms like Vinted have become substantial competitors. They allow individuals to sell their clothes easily, which diverts potential donations away from us. People are opting for the convenience of apps over traditional donation methods, making it harder for Les Petits Riens to sustain our operations.
**Interviewer:** What steps are you considering to address these challenges?
**Thierry Smets:** We’re actively exploring ways to adapt our business model and seek partnerships that could help us navigate these changing consumer landscapes. It’s crucial for us to raise awareness about the value of second-hand shopping not just for financial reasons, but for environmental ones as well. We believe in the mission of promoting sustainability and helping those in need, and we intend to continue fighting for that.
**Interviewer:** Thank you, Thierry, for sharing your insights. It’s clear that Les Petits Riens is at a crossroads, and we wish you the best in overcoming these challenges.
**Thierry Smets:** Thank you very much. We’re hopeful for the future and appreciate the support from our community.