Retailers need to offer their own secondhand platforms to claim ownership of the resale process.
Consumers are increasingly turning to purchasing secondhand items, mainly due to a desire to save money, with 72.6% of consumers citing this as a driver in a survey by leading data and analytics company GlobalData.
This, coupled with a period of high inflation, has driven rapid growth in the secondhand market, creating increased competition for secondhand players.
To stand out in this market, retailers must focus on quality control, appealing to Gen Z and creating innovative ways to attract consumers.
The global secondhand apparel market will be worth $350bn by 2028 and will comprise 10% of the fashion market worldwide by 2025.
Spend is restricted by distrust of the quality of products, with 37.9% of global consumers stating that they do not trust the quality of secondhand items.
GlobalData retail analyst Sophie Mitchell asserts that to perform well in the secondhand market, retailers must “address quality concerns through providing authentication services for high-value goods, display clear photos of products alongside detailed information or encouraging sellers to do so, and having a robust returns policy that is clearly communicated to consumers.”
In all countries surveyed, Gen Z made up the greatest proportion of consumers who stated they would purchase secondhand items more often in the next three months. This is due to both growing up in a time where concern for the environment is high, and needing to save money on items such as furniture, with inflation having impacted real wage growth, mortgage rates and rent.
Appealing to Gen Z is central to secondhand retailers’ success. The demographic can be targeted through social media campaigns and curated product selections.
“To continue the market’s momentum, secondhand players must find ways to retain consumer interest such as through pop-ups, curated collections with celebrities and collaborations.”
Source from Retail Insight Network
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