Comment: Emergence of second-hand natives
Younger generations are often given a bad rap by older cohorts but one behavioural characteristic for which they should be applauded is their embrace of buying second-hand goods, especially clothing.
Whereas there is still something of a stigma attached to buying used clothes by older generations this has been discarded by Gen Z and Alphas whose altered stance has prompted some serious changes in the retail market. It has certainly not been an overnight embracing of used goods because the platforms that have sprung up to trade second-hand clothing have often struggled with driving the necessary volumes and achieving profitability.
But things have been changing and leading the charge in Europe is undoubtedly Vinted. In 2024 it enjoyed a 36% increase in revenues to €813 million and a 330% increase in net profit to almost €77 million. This has given it an impressive valuation of a mooted €8 billion, which is some achievement for an online retailer/marketplace. It’s the sort of numbers we’re more accustomed to seeing attached to AI start-ups.
It has carved out a serious place in the second-hand market after a number of years plugging away. It has certainly become a feature in my household where my daughter mixes her purchases between used clothing and accessories from Vinted with new items from the usual suspects on the high street. This is a seriously different mind-set to that of the older generations who are very much still wedded to the buy-new approach.
Subscribe to TRBVarious surveys have highlighted how things are changing. And this is a global phenomenon. Bear in mind that Vinted is Lithuanian. One recent piece of research from the National Retail Federation (NRF) in the US found 64% of shoppers stated they may purchase a second-hand gift for themselves over this year’s holiday season and 59% would consider buying such goods as a gift for someone else.
This is not exclusive to clothing as there is a growing appetite for buying used goods across all product categories. Vinted has found there is an appetite out there and it has recently launched an electronics category – and other such extensions are planned. This initial move enables people to easily make money from their unwanted electronics, including speakers, headphones, fitness trackers and laptops.
In the UK there is a growing demand for refurbished devices, with 61% of people surveyed by YouGov saying they would be fairly willing to buy the likes of a refurbed mobile phone and 22% saying they would be very willing to do so. Again, it is a trend that is being driven by younger consumers as the survey revealed 69% of 18-24-year-olds would be up for buying such goods versus 56% for those over 50-years-old. The 25-49-year-old grouping sits comfortably in the middle with 63% positive on refurbished electronics, which very much highlights the distinct correlation between the willingness to buy second-hand goods and age.
Within my household the purchase of refurbished mobile phones – and games devices – has long been embraced. Numerous older versions of the iPhone have been bought by various members of my family from the likes of CeX and BackMarket over a number of years and there have been no problems with the goods.
Just as we have digital natives, who have grown up with everything online, it seems that we are also finding younger generations are now second-hand natives, with buying new no longer their only or their primary choice.
