Retailers and manufacturers predict an increasing number of British consumers will be searching for refurbished and pre-owned deals to save money and buy more responsibly as Black Friday ushers in the holiday shopping season.

Second-hand vendors, such as eBay Inc. and Oxfam, a British charity, anticipate a rise in sales of used goods, ranging from vacuum cleaners to clothing, as ongoing inflation and high mortgage rates limit consumers’ purchasing power.

Following Apple’s lead, many manufacturers are providing refurbished goods at a smaller profit margin as they recognise that many consumers still cannot afford their new gadgets.

This year, Sonos, a luxury speaker firm, and Peloton, an exercise bike manufacturer, are both selling reconditioned goods on eBay UK, even though there’s a chance it could eat into sales of their new products.

Last Black Friday, nine of the top ten offers on eBay UK were for refurbished goods. This year, Eve Williams, general manager of eBay’s UK business, said in an interview, there will be greater savings on reconditioned items, such as Peloton bikes and Sonos  speakers.

“People don’t have the savings they had after COVID so they have to be savvier than ever,” she said.

Dyson, a vacuum manufacturer, has partnered with eBay UK in recent years to offer properly refurbished goods at a significant savings over their retail price.

Although a brand-new Dyson V11 Animal Cordless Vacuum costs approximately 499 pounds ($622), eBay reported that reconditioned models will be available this Friday for 218.99 pounds.

Based on data from Coherent Market Insights, the global market for refurbished electronics is estimated to be worth $48 billion and is projected to increase at a rate of almost 10% annually until 2030. By contrast, Precedence Research data projects that the $723 billion global electronics market will expand at a rate of around 6% year until 2032.

According to the EY Future Consumer Index, a poll conducted among 22,000 customers and released earlier this month, over 23% of consumers worldwide said they are purchasing more used goods.

Retailers responding to the shift in consumer behaviour include the upscale UK department store Selfridges and the Swedish fashion retailer H&M.

By 2030, Selfridges hopes that over half of their contacts with customers would centre around resale, repair, rental, or refills. This goal was stated last year. A used clothing department was launched by H&M last month in its main Regent Street shop in London.

Due to the increasing acceptance of second-hand shopping and the 40% Black Friday discounts offered by British humanitarian organisation Oxfam to attract customers, traditional thrift businesses are also seeing growth.

According to a charity-commissioned poll of 3,000 people, one-third of British buyers want to present pre-owned things this year, up from one in four two years prior.

“We’ve seen a trend of people looking to buy secondhand gifts for many reasons: one is to save money, the other is because they’re looking to make more sustainable choices,” Oxfam’s director of retail, Lorna Fallon, said.

Student Lucy Baker, 19, claims that she frequently purchases used Christmas presents for her family, such as clothing, books, housewares, and board games.

“I found a waistcoat for my dad in a charity shop in Peckham the other day – I saw it and I thought I have to get it, he’s going to love it,” Baker said as she browsed in a Crisis charity shop in Camberwell, south-east London.

“It’s definitely becoming more of a trend,” she added.

Price, she noted, is a factor as well because it’s difficult for her on a student budget to purchase new things from high street retailers. Another aspect is sustainability.

“I like the idea of rewearing and reusing as much as possible,” Baker said.

The Charity Retail Association reports that during the fourth quarter of last year, sales in UK charity stores increased by 8.6% over the same period the year before. According to research provider IBISWorld, the size of the British apparel industry’s market shrank by 3.9% year on average between 2017 and 2022.

According to Reuters, Oxfam hopes to surpass last year’s holiday season revenues by 6% this year.

Lesley Wright, a volunteer at Brighton, England’s Oxfam store, is getting ready for her “busiest-ever” Christmas season.

“We’re already seeing it on weekends,” said Wright, 63, who has been volunteering for Oxfam since the mid 1980s.

“People with families have to feed and clothe children, with the stressful, extra burden of Christmas gifts.”

(Adapted from Reuters.com)

Categories: Economy & Finance, Strategy, Uncategorized