Second-hand products: 85% of consumers consider the second-hand offer essential On the same theme

By fashionlifeshopping 29/03/2022 1074 Views

Analyzes

, by Camille Boulate

According to the latest barometer published by the Cetelem Observatory, concerns related to the circular economy are becoming significant for consumers. Good news for brands: they are perceived as legitimate to offer this type of offer. Explanations.

The Cetelem Observatory unveiled, this Thursday, January 27, the results of its new study carried out on a European scale. Consumer expectations in 17 countries were thus surveyed, representing a total of more than 15,000 respondents. “Across France, more than 3,000 people were interviewed,” explains Flavien Neuvy, director of the Cetelem Observatory. Overall, the study focused on household morale. First lesson: in 2022, despite the health and economic crisis, morale is on the rise, rising from 4.7/10 (2021) to 5.4/10. On the personal situation too, the Europeans are rather optimistic. The overall average having increased by 0.5 points (6.2 in 2022 vs 5.7 in 2021).

Purchasing power under pressure

However, despite this overall optimism, gray areas are indeed present. Like the purchasing power which is considered to be declining. Thus, 86% of Europeans believe that prices have generally increased (+17 points). In France, 87% of respondents are of the same opinion.

However, the Cetelem Observatory insists on societal and cultural aspects that have evolved. “Thirty years ago, everything related to telephone subscriptions, subscription television did not exist. Today, this is clearly part of the practice, sometimes representing substantial budgets over the year”, adds Flavien Neuvy.

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The second hand, a perennial trend

But one of the lessons of this new barometer remains the place of the circular economy in the way Europeans consume. “In 2013, in one of our studies, we were talking about alternative consumption. Today, it is clearly a trend that is taking root”, announces Flavien Neuvy. However, when Europeans are asked about the circular economy, only 25% of respondents say they have heard of it and know how to explain what it is about. There are notable differences between countries.

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Despite this lack of knowledge, 85% of Europeans believe that the circular economy enjoys a good image. Among the main reasons cited: it helps preserve the environment and natural resources (85%), develop innovative products and manufacturing processes (82%) and create jobs (75%). Conversely, 65% of respondents believe that it is expensive, some recycling processes being very expensive, 45% believe that this is a market that is still poorly regulated, does not inspire confidence and finally 35% consider that the circular economy is a fad.

More information: Opening a franchise in the market for the purchase and resale of second-hand products

Purchasing power gain

But overall, at European level, respondents believe that the democratization of the circular economy (second-hand products, rental and repair of products) makes it possible to spend less (75%) and to earn money (78% ). Moreover, saving money remains the main reason for buying second-hand products for 52% of European consumers. For 36% of respondents, it is also a way to adopt good behavior in order to preserve resources and the environment.

Also, the Cetelem Observatory looked at sellers of second-hand products. And the lessons are rich. Because over the past 12 months, almost a third of European consumers (24%) have sold second-hand products at least once a month. A figure that reaches 70% if we include people selling second-hand products several times a year.

On average, the sale of second-hand products allows European consumers to earn 77 euros per month. For 18-34 year olds, this can rise to 103 euros per month. Not insignificant sums which show the market potential if you wish to become a franchisee in the market for the purchase and resale of second-hand products!

READ ALSO: Happy Cash: “I played an award-winning inventor at the Lépine competition!”

Reinsurance issues

Given this market context, which players will emerge as winners? If pure-players like Vinted or Back Market are doing well, the brands also have their say. More and more of them are entering the market. As we can see, for several months, all sectors of activity have been trying to rent or sell second-hand products. Decathlon, JouéClub or Auchan and Gémo, to name but a few. The Cetelem Observatory also shows that for 57% of respondents, the products offered by retailers and brands best meet their expectations, rather than those sold by private individuals.

Also, 41% of buyers want to favor a brand or a store (physical or online) specializing in second-hand to acquire a product. More generally, consumers perceive brands that sell second-hand products very positively. For 86% of respondents, it is indeed a way for the brand to be innovative and think of new ways to recycle. 85% also believe that it is essential for the future and 82% say that it demonstrates the brands' commitment to preserving the environment.

On the other hand, one of the challenges that retailers will have to meet is to be able to meet the expectations in terms of quality and guarantee expected by users. Indeed, for people who are resistant to second-hand products, 30% of respondents believe they do not trust these references because they are not guaranteed. “This consumer reassurance is a real challenge. The big winners in the market will be those who succeed,” says Flavien Neuvy.