Thrift, eco-conscious mode drive preloved items’ sales

AS consumers tighten their belt amid the pandemic, a trend of purchasing “preloved” or secondhand items is on the rise this year—something that, some experts say, also supports sustainability goals of those seeking to minimize environmental footprints.

This is according to research by Euromonitor International, which noted that 33 percent of consumers buy used or secondhand items at least every few months. One-fifth of the consumers are also considering increasing their purchase of such goods in the future.

The think tank said that consumers have become thrifty amid the ongoing health and financial crises across the world. “Consumers are moving from an owning to an experiencing mindset. Sustainability and individuality are removing the stigma associated with secondhand shopping and driving peer-to-peer commerce,” it explained.

The study showed that younger generations, in the age bracket of 15-29, are following this trend as they search for one-of-a-kind products in the market. Nearly the same percentage can be observed for those in 30-44 and 4559 age groups; while consumers in the over-60 age bracket are the least open to the idea of buying preloved items.

It also helps that several digital applications serving as online marketplace for secondhand items are available, allowing consumers to reflect on which of their belongings can be kept or be sold.

“Consumers are continuously taking stock of their belongings to determine which items to keep, upgrade, resell or donate,” Euromonitor explained.

In addition, vintage and slow fashion supported the “pursuit of preloved items” in the apparel market, it said.

Apart from buying and selling secondhand items, consumers also promote sustainability by donating used items to charity or nonprofit organizations, sharing or swapping items and renting items instead of buying them, the study revealed.

Circular economy

THE same initiatives are also observed on the part of businesses, which have been implementing strategies for circular economy.

Circular economy refers to sustainable means of production and consumption by reusing materials as much as possible.

According to the study, 67 percent of the professionals that responded to the survey claimed their companies are engaged in responsible consumption and production.

“Companies are implementing new business models and embracing the circular economy as consumers shift to consignment shopping. Pursuit of preloved has been prevalent in the apparel industry for years but is expanding into other fast-moving consumer goods,” the report said.

Euromonitor said that businesses promote a circular economy through buy-back programs, reusable packaging initiatives, refurbished product offerings and peer-to-peer marketplaces.

To incentivize consumers and encourage them to participate, the study noted that companies offer gift cards, store credit and loyalty points.

“Businesses that find opportunities to tap into the ‘pursuit of preloved ’ can benefit from an additional revenue stream,” Euromonitor said, in addition to building a better reputation for their brand.

Low-carbon footprint

THE mentioned trend is parallel with another outlook by Euromonitor: consumers are more keen on having lowcarbon lifestyles this year.

Last year, the think tank said that 67 percent of the consumers tried to contribute a positive impact on the environment. Such actions include reduction of plastic use and food waste and recycling.

“Consumers are becoming aware of their individual contribution to climate change. Eco-anxiety is driving environmental activism and purchasing decisions,” it explained.

As such, Euromonitor said, “consumers expect brands to step up and are taking action through the products they purchase as concerns over the climate emergency escalate.”

Apart from promoting a circular economy, companies are seen adjusting portfolios to lessen carbon footprint and investing in product innovations that are deemed climate-friendly, the report said.

Among the technological tools seen facilitating a more sustainable shift are digital product labeling and mobile tracking applications, which can aid consumers in tracing their carbon footprint and recycling habits on their gadgets.

“Digital innovation is reshaping how retailers, manufacturers and consumers transition to a new era of environmental transparency,” Euromonitor said.