Futures

The Rise of Secondhand Shopping Amid Economic Challenges: A Sustainable Trend, (from page 20220917.)

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Summary

Secondhand shopping has surged in popularity due to the recession, with a 15% growth in the recommerce sector reported in 2021, according to OfferUp and GlobalData. Approximately 272 million Americans engage in buying and selling pre-owned goods, spending an average of 27 minutes daily on digital marketplaces. The primary motivators for thrifting include lower prices and a desire for sustainable shopping. Predictions suggest that secondhand spending will reach $178 billion in 2022 and $289 billion by 2027, with many Americans, especially younger generations, turning to these platforms for additional income. Major brands are joining the resale market, indicating a shift in consumer habits that could positively impact sustainability in the fashion industry.

Signals

name description change 10-year driving-force relevancy
Rise of Recommerce Recommerce grew 15% in 2021, indicating a shift towards secondhand shopping. Shift from new product consumption to increased secondhand shopping due to economic pressures. In 10 years, secondhand shopping may dominate retail, reshaping consumer habits and brand strategies. The recession and rising inflation are driving consumers to seek affordable alternatives. 5
Digital Marketplace Engagement Americans spend nearly 27 minutes daily on digital secondhand marketplaces. Change from low engagement in secondhand markets to increased daily interaction, akin to social media use. In 10 years, digital secondhand marketplaces could rival traditional e-commerce platforms in user engagement. The addictive nature of deal-hunting and social media parallels drives this engagement. 4
Pre-Owned Income Streams Two in five Americans sell secondhand items for income, particularly Gen Z and Millennials. Shift from traditional employment to gig economy and secondary income through selling secondhand goods. In 10 years, selling secondhand might be a common and accepted income source for many Americans. Economic necessity and the gig economy are motivating more people to sell pre-owned items. 4
Brand Adaptation to Resale Major brands are launching pre-owned product lines to tap into the resale market. Shift from traditional retail models to embracing resale and recommerce as a revenue stream. In 10 years, brands that don’t adapt to resale may struggle to survive in a changed retail landscape. Market demand for sustainable options and economic pressures are driving brands to adapt. 5
Sustainable Consumer Habits More consumers are motivated by environmental concerns, with 21% citing carbon footprint reduction. Shift from purely economic motivations to include environmental consciousness in purchasing decisions. In 10 years, sustainability may become a core value influencing the majority of consumer purchases. Growing awareness of climate issues and consumer responsibility is shaping shopping habits. 4

Concerns

name description relevancy
Inflation-driven consumer behavior The ongoing recession is pushing consumers to prioritize affordability, potentially leading to a permanent shift towards secondhand shopping habits. 4
Impact on sustainable initiatives Growing popularity of secondhand shopping may lead brands to exploit the sustainability narrative while continuing harmful production practices. 4
Market over-saturation As many brands join the resale market, there is a risk of market saturation, leading to reduced profits and competition for sellers. 3
Fast fashion exploitation Fast-fashion brands entering the recommerce space could undermine genuine sustainable efforts by offering secondhand options while still promoting overproduction. 5
Socioeconomic disparities Increased reliance on secondhand goods may highlight or exacerbate socioeconomic disparities as lower-income consumers may be more reliant on them than others. 4
Change in consumption mindset A permanent shift in consumer habits towards secondhand shopping could impact various sectors of the economy, particularly affecting traditional retail business models. 3

Behaviors

name description relevancy
Growing Popularity of Secondhand Shopping Secondhand shopping is increasingly popular due to economic factors and sustainability concerns, with significant growth in the recommerce market. 5
Integration of Social Media and Shopping Consumers spend considerable time on digital secondhand marketplaces, similar to social media engagement, indicating a blend of social interaction and shopping. 4
Shift Towards Sustainable Consumer Habits More consumers are motivated by a desire to reduce their carbon footprint, leading to a rise in secondhand purchases beyond clothing. 4
Utilization of Resale for Income Generation Many consumers are leveraging secondhand marketplaces as a source of income, particularly among Gen Z and Millennials. 5
Adoption of Pre-Owned Product Lines by Brands Brands are increasingly launching pre-owned product lines to tap into the growing resale market, indicating a shift in retail strategies. 4
Economic Influence on Consumer Behavior The recession and inflation are significantly influencing consumer decisions to shop secondhand, highlighting economic factors in purchasing trends. 5

Technologies

name description relevancy
Recommerce The growing market of buying and selling pre-owned goods, driven by economic factors and sustainability concerns. 5
Digital Secondhand Marketplaces Platforms where consumers can buy and sell secondhand items, gaining popularity akin to social media engagement. 4
Sustainable Fashion Initiatives Fashion brands launching pre-owned product lines to promote sustainability and reduce clothing overproduction. 4
Consumer Behavior Analytics in Secondhand Shopping Analyzing consumer motivations and behaviors that drive secondhand shopping trends, especially during economic downturns. 3

Issues

name description relevancy
Recommerce Growth The secondhand market is experiencing unprecedented growth, driven by economic factors and changing consumer behaviors. 5
Sustainable Shopping Trends A rise in environmentally conscious shopping habits is influencing consumer decisions towards secondhand goods. 4
Impact of Inflation on Consumer Behavior Inflation is compelling consumers to seek more affordable options, significantly increasing interest in secondhand shopping. 5
Digital Marketplace Engagement Consumers are spending significant time on digital secondhand platforms, paralleling social media usage. 3
Income Generation through Reselling More individuals are using secondhand marketplaces as income sources, particularly among younger generations. 4
Fashion Industry Adaptation Brands are increasingly entering the resale market to adapt to changing consumer preferences and sustainability demands. 4
Consumer Habit Transformation The surge in thrifting could lead to lasting changes in consumer habits, promoting more sustainable fashion practices. 5