It’s the day of the nationwide Rogers outage. There’s a feeling of abject fear and desperation in the air. Most storefronts have these hastily drawn ‘CASH ONLY’ signs. Worse, emergency 911 services are unavailable to many. It’s lights out for the economy –  at least for a while.

Despite the chaos, Nyla Obaid (she/her), founder of Canopy Kids, an online, second-hand clothing shop, warmly greets me on ZOOM from her backyard on the traditional lands of the Mississauga’s of the First Credit, Mississauga, Huron-Wendat and Anishnabeg nations (under Toronto Purchase Treaty 13) and immediately lets me know she’s on her neighbour’s Wi-Fi as she’s without Internet. Nyla is calm, self-assured. She’s got an energy about her that’s instantly resonant. 

We get talking. She tells me more about launching her new second-hand clothing business for kids.

For many reasons, the timing for such a business could not be better.

Consumer inflation rates continue to rise and exceeded 8% year over year as of June. People are paying more for everything -cars, services, gas, and housing – putting financial pressure on everyone.

Embracing secondhand culture is one way to stay ahead of these unprecedented increases in inflation and make those proverbial ends meet in style – especially for parents like myself needing to stretch a dollar during the back-to-school shopping season. It’s also good for the planet.

Furthermore, the second-hand clothing market is booming. According to an extensive 2021 industry report released by ThredUP, a leading US-based online retailer, the North American secondhand apparel market will grow 8x faster than the overall apparel market by 2026. The market is expected to grow 24% in 2022 alone. Projections indicate that 50% of all second-hand sales will be generated online.

Reclaiming Secondhand Culture

For Obaid (she/her), a tight family budget and secondhand culture are core elements of her lived experience. Born to Bangladeshi immigrants, Obaid is a first-generation Canadian who cites this culture as the inspiration behind her startup dream.

 “I grew up in secondhand culture. When I was growing up, my mom would go to some church basement and all the aunties from the area would show up with their kids’ stuff and swap and sell and buy. Everything was already thrifted. So when my kids came around it was very natural to me to dress them in second-hand clothes and [I bought] second-hand toys [for them]”.

While ‘thrifting’ today is increasingly about foraging for stylish bargains, for Obaid’s family, thrifting was done out of sheer necessity. She remembers how her mother would thrift by default and not by choice.

Getting Into Recommerce

In May 2020, Obaid was growing increasingly frustrated with purchasing items for her children on Facebook Marketplace. She then had an idea to recreate the swap, sell and buy experiences from her childhood and add an online element to it with community building being the thread that ties it all together. Obaid called it the Lode Store and much to her surprise – in her words – “It was immediately successful.” This, despite an atypical startup approach. 

Entrepreneurial training rooted in the male-dominated entrepreneurial industrial complex typically focuses on engineering and executing an extensive customer research plan as a path to knowing exactly what the ideal customer wants and how to serve them.

Instead, Obaid’s approach is much more relatable. She is her customer. Her startup actions trusted that insight. 

Store offerings are chosen by Obaid herself for functionality, appeal and use. She tests toys out on her kids – if they like them, it goes in the store for sale. Obaid trusts her choices and her kids’ reactions when it comes to curating content of her store. Her clients save 60-80% off retail. 

Obaid also didn’t have time for a business plan, development of a minimally viable product, pitch decks to potential investors and a go-to-market strategy. Obaid simply collected some items together and started selling them online. She sourced more items and sold those too. Lather, rinse, repeat. Sales grew.

Even though Obaid’s post-secondary education ascended into the upper echelons of business academia, she felt that it wasn’t a path she wanted to pursue. “I do not like theoretical business, marketing and strategy background… I’m very uncomfortable with a lot of that. I’m uncomfortable with capitalism as a concept. So then when I started my business, [I asked myself] how can I still run a shop and not feed into all of that stuff?”

Building what worked and what her community (customers) wants, Lode Store rebranded as Canopy Kids. Today it offers thoughtful curation of clothes and goods for newborns up to age 14, plus an innovative time-saving, cost-saving subscription service and free delivery across Toronto. The company also offers kids’ room organizing, birthday parties and curated capsule shopping. The enterprise also leads mutual aid initiatives plus donates 15% of its proceeds to organizations working to end oppression.

With her partner’s second income as a safety net, Obaid started her business with just $500 of her own money and didn’t draw out any income for six months in order to get the business off the ground.