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. Every day, the second-hand market nibbles away at more and more market share, regardless of the type of merchandise involved, making it 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, with the help of studies. Which sectors are concerned? Who are the target groups? What are consumers' main motivations?
After reading this article, you'll have everything 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 concrete terms, it encompasses the sale and purchase of goods that have already been used. It's a fast-growing sector, boosted among other things by the challenges of sustainability and the circular economy.
🔎 In fact, in light of this growing success, figures on the subject have been abounding 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 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% buy on the second-hand market several times a month ;
- 22% once a month;
- 32% 1 time every 2-3 months.
More buying, then, but also more reselling, as 87% of respondents say they have already sold second-hand products over the period (+ 5pts vs. 2021).
🇫🇷 This phenomenon is well established in France (cocorico!): according to KPMG and FEVAD, by 2021, 91% of French people will have chosen to buy second-hand goods, compared with only 52% of Spaniards and 46% of 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, out 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 favor with consumers (+ 140% between 2019 and 2021) for mainly economic reasons, even if the growing appeal of vintage probably weighs in the balance.
Other sectors
Fashion, of course, is not the only sector to be impacted. Again 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, as 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
Let's face it, one of the main reasons 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 for reasons of price, broken down as follows:
- 38% to save money ;
- 15% to buy more with the same budget;
- 10% to buy newer, higher-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 all the more true in the fashion industry, where the development of fast fashion has led to many excesses and considerably increased people's carbon footprint.
Buying a second-hand garment rather than a new one reduces the carbon footprint by 82%.
ThredUp
In fact, 58% of Generation Z and millenials, 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 intent 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, if the motivations are there, the second-hand market has also developed because platforms have made it possible.
Leboncoin, thrift shops, garage sales... all these have been around for a very long time. But the accelerated digitalization of consumer habits following Covid, and above all the development of specific sites, have facilitated access to 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, has seen its sales rise by 65% in 2021, to 245 million euros.
Another example is the expansion of Back Market, one of France's unicorns, which has simplified the acquisition of reconditioned high-tech products.
Who are second-hand customers?
Younger generations and families
As we have seen, millennials are particularly attracted to second-hand products. Novascope estimates that this is the category of buyers most committed to this mode of consumption.
Generations Z and Y are also very much behind this economy, particularly when it comes to clothing. In fact, according to a report published in April 2023 by Thredup, they account for almost a third of second-hand fashion spending. In particular, they place great importance on the product's potential resale value, 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 attracted 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 significant age-related disparities. 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 property value, 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 advantages of the second-hand market as it has emerged are no longer in doubt, its expansion is giving rise to some rather contradictory phenomena: according to a study by Boston Consulting Group, nearly 70% of those questioned are reselling their goods 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 more and more, faster and faster, it won't solve the accelerated ecocide we're going through.
Mademoizelle
Not to mention the fact that the success of platforms such as Vinted is undermining an entire solidarity economy based on models such as Emmaüs or the Red Cross. In other words, where people used to give away their clothes for free, they now try to sell them for 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 or Facebook Marketplace.
67% of second-hand purchases in France in 2021 were made online. Leboncoin and Vinted top the list of online second-hand sellers, with 44% and 37% of sales respectively in the same year.
Novascope
But more and more retail chains are planning to exploit cross-channel marketing to get their share of the pie. For example, major players such as Decathlon have developed the Decathlon Occasions website, facilitating the resale and purchase of sporting goods between private individuals.
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 absence of a guarantee as a barrier to purchase (particularly for small electrical appliances and DIY products).
Novascope
How can you take advantage of the booming second-hand market?
Ultimately, the opportunities are numerous, and it's up to professionals to carefully analyze their sector of activity in order to identify the most relevant products to offer second-hand, as well as the target market to address first.
However, as we have seen, the choice of platforms plays a key role. They must offer all the options required 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 great technical skills), provided 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, supporting a variety of circular economy models: C2C, C2B2C, B2B, B2C, and so on. What's more, its team of former marketplace operators helps professionals in their projects to better seize second-hand opportunities.
What can we learn from the second-hand market?
Companies of all sizes and in all sectors can no longer afford to ignore the second-hand market. Between inflation and growing concern for environmental issues, even the reluctant French are starting to buy second-hand.
While any type of merchandise can be sold in this way, textiles in particular, professionals wishing to penetrate this market must be careful not to do just anything. It's a good idea to use serious platforms, or to create your own site conscientiously, in order 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 " fast fashionization of second-hand " phenomenon... or when one problem replaces another.
Article translated from French