The revolution in the second-hand market is underway! And these figures prove it
Today, buying second-hand products is an integral part of French consumer habits. And the past pandemic has more than amplified this phenomenon. Second-hand goods are steadily gaining market share, regardless of the type of merchandise involved, making them a serious option for retailers to consider.
But to what extent?
In order to fully understand the extent of this trend, let's take a look at the second-hand market, backed up by research. Which sectors are concerned? Which demographics are being targeted? What are the main consumer motivations?
After reading this article, you'll have all the information you need to seize this promising opportunity 📈.
Key figures for the second-hand market
But what exactly is the second-hand market?
Before going any further, let's agree on the definition of the second-hand market.
In practical terms, it covers the sale and purchase of goods that have already been used. It's a fast-growing sector, boosted by sustainability and circular economy issues, among other factors.
🔎 In fact, given this growing success, figures on the subject have been pouring in for some time now!
How is the second-hand market faring?
To fully grasp the challenges associated with this trend, there's nothing like letting the figures speak for themselves. Numerous studies have been published, including one on the second-hand market in 2023, carried out by Novascope.
And the first figure to emerge is more than evocative:
Nearly 3 out of 4 French people bought a second-hand product during the year, all categories combined (+9pts vs. 2021).
In terms of frequency, :
- 20% bought second-hand several times a month ;
- 22% once a month;
- 32% once every 2-3 months.
More purchases, then, but also more resales, since 87% of those surveyed said they had already sold second-hand products over the period (+5pts vs 2021).
🇫🇷 This is a phenomenon that is well established in France (cocorico!): according to KPMG and FEVAD, in 2021, 91% of the French will have chosen to buy second-hand goods, compared with only 52% of the Spanish and 46% of the Portuguese.
Sectors concerned by second-hand goods
Fashion leads the way
All sectors are potentially concerned by second-hand goods. Witness the success of Leboncoin for many years now, where you can sell just about anything and everything.
But it's impossible to ignore the triumph of second-hand fashion, whose products are the biggest sellers in this market (48% + 12pts).
And according to a Tripartie and Wavestone study carried out in 2022, of the €105 billion worth of second-hand purchases, €33 billion will go to the second-hand clothing market.
Of course, the arrival of Vinted had a lot to do with it. But physical thrift stores have also had a role to play: they have regained favour with consumers (+ 140% between 2019 and 2021) for mainly economic reasons, although the growing appeal of vintage is probably a factor.
Other sectors
Fashion, of course, is not the only sector to be affected. According to Novascope, it is followed by :
- cultural products (books, video games, etc.) with 45%,
- furniture and decoration with 34%,
- games and toys with 28%,
- small electrical appliances with 21%.
The second-hand luxury goods market is also experiencing some of the most interesting growth (between 10% and 15%). In fact, according to Le Journal du Net, it will reach 24.9 billion by 2028 across Europe (compared with 15.6 billion in 2022).
Finally, a special mention for the High-Tech sector, where almost a third of French people have already turned to a refurbished electronic product (source ReBuy and YouGov).
Why is the second-hand market booming in France?
More economical
There's no denying it, one of the main reasons why consumers are turning to second-hand goods is economic. Even more so in the current inflationary climate.
According to Novascope, 86% of those questioned buy second-hand because of the price, with the breakdown as follows:
- 38% to save money ;
- 15% to buy more with the same budget;
- 10% to buy newer, better quality or luxury items.
More ecological
But it's also a question of ecological awareness for 65% of those questioned, 19% of whom said it was their primary motivation!
This is especially true in the fashion industry, where the development of fast fashion has led to many excesses and considerably increased people's carbon footprint.
Buying second-hand clothes rather than new ones reduces our carbon footprint by 82%.
ThredUp
Moreover, 58% of Generation Z and millennials, the strategic targets of the second-hand market, say they are aware that their dressing room contributes to climate change.
It's hardly surprising, then, that ecological awareness resonates more strongly with " committed addicts " (24% of buyers), who tend to be women between the ages of 25 and 35, and for whom CSR motivations are on a par with price.
More suitable platforms
However, while the motivations are there, the second-hand market has also developed because platforms have made it possible.
Leboncoin, second-hand shops, garage sales... all these have existed for a very long time. But the acceleration in the digitisation of consumption patterns following Covid, and above all the development of specific sites, have made it easier to access second-hand goods.
Since fashion is at the forefront of this economy, it's impossible not to mention brands such as Vinted and Vestiaire Collective. The former, for example, is set to increase its turnover by 65% by 2021, to €245 million.
Another example is the expansion of the Back Market website, one of France's unicorns, which has made it easier to buy reconditioned high-tech products.
Who are the second-hand customers?
The younger generation and families
As we have seen, millennials are particularly attracted to second-hand goods. Novascope estimates that this is the category of buyers most committed to this mode of consumption.
Generations Z and Y are also big fans of this economy, particularly when it comes to clothing. According to a report published in April 2023 by Thredup, they account for almost a third of second-hand fashion spending. In particular, they attach a great deal of importance to the potential resale value of the product, although like millennials, they are also influenced by their commitment to the environment.
Finally, families with children under the age of 15 are also largely seduced by the opportunity. According to Access Panel, 74% of them have already bought or sold on the second-hand market.
What about older consumers?
On the other hand, there are major disparities between older and younger consumers. In France, only 47% of over-60s say they buy second-hand.
💡 For the Observatoire des Seniors, this reluctance is largely due to a stronger attachment to the value of ownership, to the idea of prestige associated with owning a new good.
The limits of second-hand: towards the fast fashion of second-hand?
While the ecological benefits of the second-hand market as it has emerged no longer need to be proven, its expansion is giving rise to some rather contradictory phenomena: According to a study by the Boston Consulting Group, nearly 70% of those questioned are reselling their possessions in order to gain more purchasing power... with the aim of buying new!
What's more, very attractive second-hand prices encourage people to buy more, and often things they don't need.
It's true that a second-hand purchase pollutes less than a first-hand one, but if we continue to produce and consume ever more, ever faster, this will do nothing to resolve the accelerated ecocide we are experiencing.
Mademoizelle
Not to mention the fact that the success of platforms such as Vinted is undermining a whole solidarity economy based on models such as Emmaus or the Red Cross. In other words, where people used to give their clothes away for free, they are now trying to sell them to make a profit.
Second-hand market platforms
The second-hand economy operates largely via platforms using a CtoC (Customer to Customer) model. Most purchases are made from private individuals, on sites such as Leboncoin, Vinted and Facebook Marketplace.
67% of second-hand purchases in France in 2021 were made online. Leboncoin and Vinted are the leading online second-hand sellers, accounting for 44% and 37% of sales respectively that year.
Novascope
But more and more retail chains are planning to exploit the cross-channel approach to get their share of the pie. For example, some of the big players are getting in on the act, such as Decathlon, which has developed the Decathlon Occasions website, making it easier for private individuals to buy and resell sports goods.
So even if consumers looking for second-hand goods don't turn first to these companies, they do have some cards to play. To compete with the big C2C platforms, they can rely on guarantees, which are sometimes difficult to obtain when dealing directly with a private individual.
77% of French people say that buying a second-hand product means taking a risk, and 40% of buyers cite the lack of a guarantee as a barrier to purchase (particularly for small electrical appliances and DIY products).
Novascope
How can you take advantage of the boom in the second-hand market?
In the final analysis, there are many opportunities, and it's up to professionals to analyse their sector of activity carefully in order to identify the most relevant products to offer second-hand, as well as the target market to which they should give priority.
However, as we have seen, the choice of platforms plays a key role. They must offer all the options necessary for the strategy, but also provide the quality and transparency so sought after by consumers, especially the most reluctant.
It is also possible to develop your own site (even without extensive technical skills), as long as you find a tool that is sufficiently flexible and feature-rich to adapt to all configurations. Origami Marketplace, for example, is an easy-to-use marketplace editor available in SaaS mode that supports various circular economy models: C2C, C2B2C, B2B, B2C and so on. What's more, its team of former marketplace operators helps professionals with their projects to better seize second-hand opportunities.
What can we learn from the second-hand market?
Businesses, whatever their size or sector, can no longer afford to miss out on second-hand goods. Between inflation and growing concern for environmental issues, even the reluctant French are starting to buy second-hand.
While all types of goods can be sold this way, textiles in particular, professionals wishing to penetrate this market should not do just anything. It's best to use serious platforms, or to create your own site carefully, to reassure consumers. Of course, let's not forget to continue adopting the right reflexes to reduce our carbon footprint. In other words, watch out for the phenomenon of " fast fashionisation of second-hand goods "... or when one problem replaces another.
Article translated from French