Despite the longstanding existence of the resale model, recent years have witnessed a transformative surge in recommerce. Fuelled by ongoing digitalisation, global financial instability, and a growing commitment to sustainability, recommerce has reached heretofore unforeseen levels. The evolution includes geographical expansion, diversification across product categories, the introduction of new recommerce solutions, and significantly heightened interest from both businesses and consumers.
Resale thrives due to younger demographics and rising interest from older generations
Almost half of digital consumers globally bought previously owned products in 2023
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey
Consumer interest is propelled by younger generations, with millennials being driven by their commitment to contributing to environmental issues, while Generation Z is more focused on value, considering their early-career stage and limited savings. Only 28% of Generation Z feel financially comfortable in 2023, which is below the 33% average for the populace as a whole. Leading resale platforms are dominated by younger consumers, with most users on resale platforms, from Lithuania-based Vinted to China-based Xianyu to UK-based Depop, under the age of 35 years, according to the companies.
At the same time, older generations have made the biggest shift in their beliefs regarding recommerce since 2019, signalling that the historical stigma associated with second-hand products is dissipating rapidly. As a result, consumers of all ages are increasingly open to purchasing second-hand items, embracing resale as a crucial aspect of a mindful and forward-thinking consumer culture. These consumers increasingly believe they can make a positive impact on the world through their choices and actions.
Recommerce benefits from ongoing digitalisation – especially due to the convenience provided by e-commerce
In 2023, 64% of the entire global population used the internet, double the rate from a decade ago. The e-commerce boom during the pandemic transformed consumer behaviour, leading to increased expectations for convenience in online services, including recommerce. As a result, second-hand online platforms now offer user-friendly interfaces, integrated delivery, and payment options, mirroring the seamless experience of e-commerce.
Furthermore, the growth of recommerce is mobile-driven, with platforms such as Vinted seeing 90% of their customer traffic come through mobile devices.
Of those digital consumers who purchased second-hand products, more than half (51%) opted for the ease and accessibility of online transactions in 2023
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey
The surge in online popularity is also linked to the expanded product variety within the online resale sector. Initially centred on second-hand apparel, recommerce now encompasses nearly all categories, ranging from consumer electronics to home care to art.
To foster consumer trust, retailers and resale platforms are expanding services to include consumer protection, user verification, product authenticity checks, detailed search options, and more, making buying and selling pre-owned items simpler than ever before.
Retailers and brands recognise the potential of recommerce and are actively entering the market
Recommerce enhances efficiency, saves resources, lowers production costs, reduces environmental impact, and creates new revenue streams. A recent report by thredUP, a US-based online resale platform, reveals that second-hand apparel value sales are growing at a rate three times that of new items. This presents a win-win strategy, contributing to circularity and sustainability while boosting revenues, making it an opportunity no business wants to miss.
56% of industry professionals indicated that they planned to invest in circular economy business models in the next five years, up by seven percentage points compared to the previous year
Source: Euromonitor International’s Voice of the Industry: Sustainability Survey 2023
While consumer-to-consumer transactions are still the most common recommerce model, companies are now venturing into business-to-business solutions. LVMH's Nona Source, an online resale platform, offers emerging creatives and brands access to premium materials from the fashion and leather goods houses within the group. This innovative platform promotes creative re-use by providing a diverse catalogue of materials, showcasing the growing potential of the circular business model for brands and retailers.
Recommerce is reshaping the retail landscape, and businesses cannot afford to overlook it. In 2024, the market braces for the rise of novel solutions, dynamic collaborations, and new players in the recommerce sector, driven by the growing interest in resale across generations and regions.
To explore more about recommerce and other leading digital consumer trends, read our Top Five Digital Consumer Trends in 2024 report, and sign up to attend our 2024 Consumer Trends to Watch webinar.