Fashion Influencers Struggle Financially

Sam Parr believes flea markets represent a massive business opportunity that's being overlooked, particularly as young people increasingly embrace vintage and secondhand clothing.

Key Points:

• Flea markets are a significant business opportunity:

  • They're recession-proof businesses in a highly fragmented industry
  • They last for many decades once established
  • They're difficult to disrupt once they work well
  • They can generate substantial revenue (Rose Bowl example: ~$7-8 million annually)

• Young people are driving the vintage/secondhand clothing trend:

  • "Something like 80% of Gen Z-ers regularly shop for secondhand clothing"
  • Apps like Depop have 80 million users
  • Other platforms like Poshmark, Grail, and similar services are thriving
  • "Thrift hauls" are extremely popular on TikTok and Instagram

• Goodwill's growth demonstrates the market's strength:

  • Revenue grew from $4.8 billion to projected $9 billion over the last decade
  • Goodwill Finds (their online marketplace) is gaining popularity

• Two specific business opportunities:

  • Private equity roll-up opportunity ("flea markets could potentially be the new RV park")
  • Partner with fashion influencers who have large followings but are financially struggling
    • "I've spoke to like 10 or 20 of them and they're all fucking broke"
    • "They're all like 'I wish I could just pay my rent with this'"

• Current flea market operators may not be maximizing potential:

  • Many are passion-driven rather than business-focused
  • "They're probably not the most uptight operators"
  • "When passion leads maybe you're leaving dollars on the table"