Following the growth of re-sale specific sites and brands’ interest in driving more value from products, new research from Deloitte indicates that over a quarter of all consumers plan to give a resale item this season, with younger consumers leading the way.
According to new research from Deloitte, the professional services firm, based on a survey of 1,200 US adults in October and November 2019, as many as 61% of Gen-Z (18-22) consumers are “planning” to gift a resale product this year. Millennials, too, are keen on second-hand gifts with 43% of this cohort saying the same.
Reflecting a generational difference in attitudes, older cohorts are less likely to go the same way, though there is still a certain interest. A quarter of Gen-X (39-54) and 13% of boomers (55-73) will give a resale gift, while seniors (74 and above) are least likely to at just 9%.
The main reason for going second-hand is to save money (50%), with other related ambitions also key: 24% are looking for an affordable way to gift a premium or luxury brand.
Crucially, the research also looked into the intended recipients of these products are most likely to be family (68%), followed by friends (37%), and self (28%).
The 73% of consumers overall who won’t be buying second-hand gifts (often euphemised as ‘pre-loved’) cite three main reasons: the appearance of being cheap, concerns about the item’s condition, and not finding exactly what they want.
But the numbers reflect an important and growing space for consumers that brands must begin to understand. A recent report from the re-sale platform thredUp (in collaboration with the third-party retail analytics firm GlobalData) suggests that the second-hand market for clothes will be nearly 1.5x the size of fast fashion within 10 years.
Platforms are now springing up around the movement, with young companies like Depop (recently covered in WARC) appealing to a Gen-Z and millennial cohort interested in a highly curated experience of second-hand fashion.
Other ideas work towards providing a platform through which established brands can take advantage of enhanced circularity. The platform Yerdle is working with companies like Patagonia to create on-brand experiences that leverage consumer trust while bolstering environmental credentials.
Sourced from Deloitte, ThredUp, WARC
