Wanting to follow a new consumer trend or to make smart purchases, more and more consumers are turning to second-hand products. The second-hand market has been booming for several years. Yes, but what are the benefits for brands? Focus!
Why is the second-hand market booming?
The rise of the second-hand market is based on the game of the current economic situation and for several years. Indeed, nowadays, many consumers find themselves in financial difficulty. The second-hand market allows, as they say, to make smart purchases.
Other parameters also explain the growth of this market, including the ecological motivations of consumers. Recycling has been fashionable for quite some time. Moreover, the Internet contributes greatly to the development of this market. It facilitates the connection of actors and their transactions are fast.
How it works? The second-hand market brings together the various players in several ways: garage sales, auctions, clearance sales, online sales through the eBay or Leboncoin second-hand market, storage or purchase of second-hand goods from individuals by professionals to resell them….
Direct benefits for brands
For France alone, last year this second-hand market generated more than seven billion euros, and this figure continues to grow until today. Between now and 2023, there are still good prospects for strong growth in this market, whether for the French or for other countries. Other figures to remember, still last year, the second-hand luxury market grew four times faster than the primary luxury market.
Considering these figures, brands cannot ignore this market share which is made up in particular of young consumers. This boom presents itself to them as an opportunity not to be missed. There are already a number of luxury brands that have taken the plunge. They invest with sites selling second-hand luxury goods to authenticate their offers. Thus, consumers have more assurance about the quality of the goods offered and are encouraged to buy more. Both brands and sites benefit from it.
A virtuous economic circle in favor of brands
Individuals who sell their used products are often buyers of new goods most of the time. Generally, a person gets rid of a circular saw that no longer serves him to buy a new one like the models proposed in this article. Only, instead of throwing away a device that is still in good working order, he gets money that can help him increase his purchasing power to have new, more efficient and more expensive luxury equipment. This point is an advantage for brands that see the purchasing power of their current or potential customers grow through this market.
On the other hand, consumers often buy products on the second-hand market that they cannot afford to have in new condition because of their limited budget. If they are completely satisfied with their purchase, they constitute potential customers for the primary luxury market when their financial situation improves.
Eco-responsible companies also take care of their image thanks to this second-hand market. If the products can be reused in second hand, it is thanks to their quality, their long life or the possibility of recycling them. Always with the aim of looking after the image of brands, some of them are using the boom in this second-hand market to offer a service. They take back the products that consumers bring back to resell, recycle or give them away.