The growth of the secondary market is not unexpected. Coupled with financial prudence, responsible shopping by prioritising environmental sustainability over fast-fashion trends continues to gain increasing popularity.
The rise of digital platforms and the proliferation of vintage and charity shops has democratised the buying and selling of pre-loved items, making them more accessible than ever before. Accelerated by the cost-of-living crisis, demand for second-hand goods has surged.
The BRC-Opinium survey corroborates the trend, as the proportion of people said that they had either bought or sold second hand items increased in 70% of the item categories measured. Notably, furniture experienced the most pronounced growth, with the proportion of people buying and/or selling rising to 21%. Adult clothing emerged as the most popular second-hand item, with 43% of respondents having either acquired or disposed of clothing.
The survey also showed that there are major generational differences. Gen Z (18-27) were the most likely to buy or sell second-hand items for all categories (except children’s clothing). The last year also saw a big increase in the proportion of Gen Z who had bought or sold pre-loved small electronics, such as smartphones and laptops. Meanwhile, Boomers (60-78) saw an increase in the buying and selling of second-hand furniture.
The online market place, Vinted, reports that millennials constitute its largest demographic, comprising 44% of the marketplaces’ users, followed by Generation X, which accounts for 32%.
“It is great to see so many people, across all generations, embracing the circular economy. Second-hand is no longer seen as second best. It has become a first choice for sustainability, affordability and individuality. With many retailers now offering their own pre-loved collections, and so many great resale platforms, online marketplaces and charity shops – customers are spoilt for choice,” said Sophie De Salis, Sustainability Policy Advisor at the British Retail Consortium.
Conscience and convenience shopping
The rise of the second-hand market is redefining the retail landscape, driven by consumers’ increasing emphasis on sustainability, affordability, and unique product offerings.
Whilst it can offer new revenue streams and attract environmentally conscious consumers, there are risks of cannibalising sales of new products and perhaps even, devaluing brands. Businesses must carefully consider how to navigate this evolving landscape to effectively mitigate risks and capitalise on the growing secondhand economy. Processing second-hand products is also more labour-intensive and potentially an added cost for businesses as the re-commodification of second-hand items requires careful assessment and re-conditioning.
However, this is not a transient trend but a fundamental change in consumption patterns, which should compel retailers and brands to reassess and adapt their strategies.
Catering for both conscience and convenience in retail has never been more important. Savvy brands and retailers need only look at major brands such as H&M, Zara, Primark and the likes of Patagonia and Toast, all of whom now offer branded, second-hand collections.
The horticultural retail industry should take note. Trendy, curated collections of reconditioned garden tools, furniture, clothing and paraphernalia may not only foster growth, but can also help to engage a diverse demographic and enable customers to shop more sustainably. Some experts believe the key to making the pre-owned market work is by not only treating it as a for-profit business, but also as an environmental imperative.
Diversification of existing retail business by adopting strategies such as branded resale products, trade-in incentives, and partnerships with resale platforms could present opportunities for our industry to benefit from this growing trend.
