Our second-hand life, another way of consuming

The alarm clock rings, you watch the networks on your refurbished smartphone. Time to get dressed, you put on your jeans and your vintage jewelry. From luxury items to furniture, clothing and even electronics, the second hand is everywhere. While the Braderie de Lille is being held this weekend, which last year brought together between 1.5 and 2 million visitors, the second-hand market is doing well in France, and is experiencing a new lease of life thanks to digital technology. Boosted for several years now, this sector is estimated at 6 billion euros in turnover, according to an estimate by the research firm Xerfi.

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“With the economic crisis, the French experienced a very sharp drop in purchasing power in 2012. There was then this need to go through these tools to consume, explains Pascale Hébel, Director of the Consumer and Business Division of Crédoc. In an economy that is recovering, the second-hand market fell a little between 2014 and 2015: after years of scarcity, the population wanted to buy new. But since then, the sector has started to rise again.”

Evolution of the relationship to the object

The motivation of consumers is primarily economic, but other influences modify their behavior. “We notice that there is more and more another aspect to take into account: that of resistance, of a seizure of power by citizens in relation to the consumer society”, adds Aurélie Dehling, associate professor at Kedge Business. School. Added to this is the appropriation of the second-hand object, which takes on a “form of uniqueness”, according to the professor.

For the experts, this is a sector that mainly affects young people: they often have fewer means and their relationship to objects is changing. “For older generations, it is unimaginable that a gift is second-hand, notes Pascale Hébel. While young people have understood the financial, ecological and philosophical issues.” According to an OpinionWay study for Troc.com published in December, 79% of 18-24 year olds do not say they are opposed to the resale of a Christmas present.

Powered with internet

The Internet has helped the second-hand market to become more democratic, thanks to matchmaking platforms which play a facilitating role. From the mythical Le Bon Coin, through the big brands - Petit Bateau launched a second-hand clothing application last year -, to newly developed startups.

In 2016, 44% of French people have already bought second-hand goods on the internet, whereas they were only 27% in 2007, according to a Crédoc study. The buyer can interact with the seller, ask questions, compare products, all from home. “A lot of people have trouble with physical interactions with strangers, like in flea markets, notes Aurélie Dehling. Ultimately, what we do with romantic encounters is the same for the occasion.”

This is the bet of LuckyFind, a French startup specializing in online flea markets. Buyers and sellers monetize goods of all kinds: decoration, furniture, clothing, etc. “Today, we are seeing a change in mentality. We will buy a piece of furniture knowing that the year after we will perhaps want to change the decoration. It's a mode of consumption that is changing”, analyzes Nabil El Mouden, co-founder of the startup. For each transaction, LuckyFind, which is celebrating its third year of existence, charges 10% plus €1 in commission.

A market that is becoming more professional

The return of vintage and fashion effects on the circular economy are also benefiting the second-hand sector. Nabil El Mouden seeks to capture a younger clientele and to do this, he intends to highlight the goods in vogue. “For the start of the school year, it's the return of 1990s clothes. We're going to play on that”, he specifies.

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In 2016, when Nabil El Monden co-founded the startup, he wanted to overcome the lack of security and online payment on Le Bon Coin. But recently, the classifieds group, which is experiencing double-digit growth in its turnover (257 million euros last year), has been offering a secure payment service.

If France remains very fond of selling goods from individuals to individuals, the second-hand market is tending to become more professional. In electronics, consumers are more wary of buying high-priced products from strangers. A Kantar TNS and Recommerce study points out that only 20% of French people say they are ready to buy a second-hand phone from an individual, when 60% say they are interested in a professional.

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A vein exploited by refurbished smartphones, of which 2 million were sold in 2017, or 7% of total sales. ”At the time, the second-hand market was booming and the product cycle accelerated. There was a permanent renewal: consumers changed their mobile every 18 and 24 months and there was no recovery and resale channel, it was a market in the hands of C2C”, explains Patrick Richard, commercial director at Recommerce.

The startup created in 2009 offers to refurbish used phones, then resell them between 10% and 60% cheaper. And it works rather well: the company records an income of 45 million euros, up 30% over two years.

Towards the end of the flea markets?

With the resurgence of second-hand sales websites, flea markets and other garage sales are losing speed. “When you go to flea markets, you notice that the population is very aging. The flea market will be more of a walk, less a place of consumption if you are looking for a specific product”, analyzes Aurélie Dehling.

Even the book, the essential of garage sales, is taken by storm by companies. Exit the mythical Gibert Jeune, startups now offer to empty the libraries of individuals. This is the case of Recyclivre, created in 2008, which picks up books directly from home free of charge. On average, they collect 250 books per customer, before reselling most of them for a few euros on their site. “We arrived with a more internet and techno approach compared to historical players,” says David Lorrain, the founder.

The margins for growth in the second-hand market, which represents only 1% of retail sales, remain considerable. For the experts, this sector, well established in the daily life of the French, will continue to grow. “The sharing of consumer goods like washing machines, vehicles, etc. will develop to make objects last without necessarily reselling and buying them back, especially with goods on which there is an ecological impact”, concludes Pascale Hébel. All in all, more responsible consumption and less productivism.