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Second Hand Market

Budget constraint is pre-requisite to the steadily rising demand for Second-Hand products. As the concept gains popularity, retailers are gearing up for intense competition in the industry. Consumers are continually growing awareness of the benefits in regards to adopting sustainable practices in the market. Second-hand products can help consumers recycle materials, repurpose and upcycle them. According to a recent study, more than 70 percent of the people in the world use second-hand products.

Customers are cost sensitive and thus opt for second-hand products as they assist in maintaining an economically-friendly lifestyle. More than 30 percent of the customers prefer to choose second-hand products as they comfortably fit the spending budget. According to market research, 76 percent of the consumers rarely consume pre-owned products especially clothes. Low-frequent usage and consumption thus become a motivator for them to sell these products in the second-hand products market.

Concerns

The second-hand industry faces concerns such as little to no assurance of the quality of goods and reliability of sellers. According to Market Research, around 54 percent of the second-hand products sold were not as they were assured, and this has raised many doubts regarding the market. Other issues include lack of hygiene, the inclusion of hazardous components and the safety of the transaction conducted. Technological advancements tackle the problems regarding second-hand products and thus improve their credibility in the market. Many shopping websites and apps now test the reliability of a product before letting sellers advertise them on their platform. They have assisted in successfully eliminating the risks associated with second-hand products.

Trends

A popular market trend includes purchasing vintage or retro products because they have a historical value attached to them. A significant disadvantage of retro products is their short-term usage and consumption rates. Customers purchase products that were trending at a different time due to benefits like social popularity, sustainable and smart purchases. According to market research, 55 percent of the customers prefer second-hand products with an emotional insight attached to them. Consumers prefer purchasing second-hand products with a story behind them as it makes the products more appealing to the shoppers.

According to Market Research, a significant advantage of second-hand products is their monetary worth. Eighty-five percent of shoppers who purchase second-hand products also tend to sell their products in the market. Studies prove that trading in the second-hand market assists in raising funds and improving the economic condition of sellers. Another major benefit is the flexibility of the market and the people in it. The cost of products in the market is not fixed which indicates that the prices can be bargained on to improve product worth.

Technological Advancements

The advancements in technologies have also made it simpler to conduct negotiations and transactions regarding trade in the second-hand market. Technology allows retailers to communicate across geographical limits and deliver products to consumers conveniently. The advancements also enable to boost buying power and improve customer knowledge in regards to the second-hand products.

Green Initiatives

Green initiatives and sustainable practices inspire many shoppers to opt for second-hand products. Increased consumption of second-hand products has assisted in reducing carbon emissions and other harmful substances. Second-hand products also gained popularity due to the positive impact they have on the ecosystem.

Despite various trade and security concerns, the second-hand industry has seen continuous and steady growth rates. The industry has also seen many social campaigns and online posts in support of using pre-owned goods, highlighting the sector and raising awareness towards the positive uses economically and ecologically.

Written By: Arshad Kazi

Money Master

2019-03-05T11:06:30+00:00

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