Secondhand shopping (i.e., the purchase of used and preowned items, including luxury categories), is one of the most significant current trends in retail.
According to our Q1 2023 Multicultural Consumer Survey of 2,000 US respondents, people under 35 make up the majority of secondhand shoppers. Lower-income shoppers are a key customer segment; their secondhand purchases focus on essential categories such as clothes, furniture, books, and appliances. But higher-income shoppers have joined them. They have become leading shoppers in discretionary categories such as exercise equipment, jewelry, bags, and plants. With younger and higher-income consumers most committed to buying used items, secondhand shopping has lost its stigma.
Insights for What’s Ahead
The pandemic’s supply chain issues, subsequent inflation, and online selling platforms have boosted the secondhand market—and this may continue. Buying used items was on the rise before Covid-19 due to lower costs and, increasingly, sustainability benefits and the fun of discovering unique items. The pandemic, subsequent supply chain issues, and later persistent inflation have boosted both supply and demand for secondhand items. There is more inventory from people cleaning out their homes and seeking extra income by selling their used items. Secondhand demand initially rose during the pandemic due to supply chain shortages, including shortages for cars, bikes, and home appliances. The elevated inflation over the past two years has furthered the category’s appeal—with no end in sight. Plus, company-operated digital resale platforms (e.g., ThredUp, The RealReal) and peer-to-peer platforms (e.g., eBay, Poshmark, OfferUp, Facebook Marketplace) have facilitated the increase in secondhand buying.
For secondhand retail, the categories expected to grow the most with current shoppers are plants, shoes, and clothes, ahead of toys/games, bags, and electronic devices. Apparel and books are established top secondhand categories, along with furniture, while plants are newer. Demand for houseplants has surged, driven by a greater focus on the home since the pandemic, wellness objectives, and higher prices for larger quality plants. Furniture experienced a pandemic boost, growing by 33 percent between 2019 and 2022, coinciding with IKEA’s first secondhand store in late 2020 and launch of a buyback and resell program. However, growth expectations for furniture are lower, surpassed by other products such as plants, shoes, and toys. The anticipated growth of categories such as plants and shoes, for which hygiene and wear and tear have been an obstacle in the past, suggests that other secondhand product categories could grow or emerge.
While shoes and plants are currently smaller secondhand categories, they are among the fastest growing ones
Age seems to be a better predictor of secondhand interest than household income and race, with younger shoppers the most enthusiastic about buying used items across a range of categories. This includes clothes, electronic devices, shoes, toys, and plants, which are of particular interest to Millennials. While secondhand items have traditionally appealed for their lower cost, sustainability benefits—especially for younger generation—and the thrill of “hunting” for unique items have become additional purchase drivers, along with pandemic-driven supply shortages. All of these have helped reduce the stigma of buying used items, making secondhand shopping a trendy option, and a smart one in times of rising inflation.
Lower-income consumers shop secondhand more for essentials; higher-income consumers spread purchases over more categories, including discretionary ones
Lower-income consumers focus their secondhand shopping on essentials such as clothes, furniture, books, household appliances, and electronic devices. In contrast, higher-income shoppers spread their secondhand purchases over discretionary categories. This includes exercise equipment, jewelry, bags, and plants. (Plants are usually bought by households more affluent than the average consumer.) Given that 61 percent of shoppers with incomes under-$35K report they are cutting back on discretionary spending in this economy (see bar chart below), the focus on essential categories is no surprise.
Secondhand loyalty is highest with younger and higher-income shoppers; plants are the lead category for future purchasing intentions
Still, lower-income consumers intend to expand their shopping for used items, including discretionary categories such as plants, toys/games, jewelry, and exercise/outdoor equipment (see Table below). However, their plans to increase their future secondhand shopping is notably less pronounced than that of the higher-income segment. Apart from efforts to save (see Chart above), this could partly be due to a lack of nearby secondhand stores (a higher share of respondents in the up-to-$35K income category live in rural areas), even if online options exist.
Younger, higher-income, Hispanic, and Black consumers are less likely to cut back on discretionary spending
Higher-income shoppers are the main buyers of several discretionary categories, including plants, the category expected to see the most future growth. Secondhand purchases are no longer just a way to make ends meet. Shoppers under 35 years old are most likely overall to buy secondhand. However, shoppers with household incomes of $75K+, many of whom are married or cohabitate, show similar secondhand buying patterns. These two segments, the young and the affluent, along with Hispanic and Black shoppers, are also least likely to cut their discretionary spending in the current economy and most likely to spend more (see bar chart above). Higher-income shoppers are the dominant shoppers in several discretionary secondhand categories, namely exercise and outdoor equipment, plants, shoes, toys/games, jewelry, and bags.
Overall, higher-income, White, and Hispanic consumers expect to do more secondhand shopping across a range of categories, driving potential growth. Higher-income Black consumers are more focused on secondhand clothes and shoes—unlike their peers in lower-income brackets who buy secondhand more broadly. While higher-income shoppers might have multiperson households, they are least likely to cut back on discretionary spending and most likely to increase it (see bar chart above). These well-off shoppers’ high propensity for increasing secondhand shopping compared to lower-income segments underscores the fact that buying used items is no longer a last resort. Considering that White and Hispanic shoppers make up the vast majority of the US population, secondhand retailers may find these higher-income groups valuable targets. Asian shoppers, who tend to have higher incomes, are overall least likely to buy secondhand, but are dominant buyers of exercise and outdoor equipment (see first table above). In the up-to-$35K income bracket, Asian consumers outpace other shoppers on toys and bags; in the $35–75K income bracket, they are the biggest spenders on plants. Once shoppers embrace used items in one category, they might be more ready to adopt them in others—an opportunity for companies’ targeting campaigns.
Overall, shoppers with higher incomes expect to increase their secondhand shopping the most
Looking Ahead: Further Implications of Secondhand Trends
The price advantage of secondhand goods and other appealing features support sustainability goals. Affordability/value is shoppers' number one motivation to buy secondhand fashion, ahead of product variety, but sustainability has been catching up, as has the “thrill of the hunt.” This is consistent with our prior research and the resulting Hierarchy of Consumer Needs: Consumers value sustainable features, but basic criteria such as the function and quality of a product, price, and customer experience need to be satisfied first. The premium price of sustainable products is an important barrier for consumers, especially during inflationary times. In recent research, we found that 60 percent of US consumers have a decreased interest in buying sustainable products/services due to inflation. The trend of increased secondhand shopping serves the goals of thriftiness and sustainability simultaneously. Considering two recent, consecutive drops in The Conference Board Consumer Confidence Index® as of February, the market for secondhand goods may grow further, propelling sustainability in the process.
Companies that sell new items, especially those that operate in the low-price segment such as off-price brand retailers, should assess what adaptions to their marketing strategy might be needed to maintain their revenue streams. Firsthand retailers might want to remind shoppers of unique features that differentiate their business from secondhand retailers, such as a selection of sizes and colors, multiple units of the same item, and an online channel which many local secondhand stores don’t have. Another route, which many firsthand retailers have pursued, is to add secondhand options of their own merchandise and/or that of other brands to their online and/or in-store offering—either managed in-house (e.g., Patagonia, Lululemon, IKEA, Leica) or by a third party specialized in secondhand operations (e.g., ThredUp, Recurate).
The secondhand trend might make some brands consider focusing their design and production more on classic styles and durability to make them suitable for second- and even thirdhand. While this could impact revenue and profit due to less frequent purchases and lower prices in a brand’s resale market, it can help foster a brand image of sustainability and attract new buyers—and potentially achieve higher prices. In fact, some luxury brands have emphasized their value by pointing out their durability. One of the first brands to do this was luxury watch brand Patek Philippe, positioning its product as meant for multiple generations, helping to justify the high price: “You never actually own a Patek Philippe, you merely look after it for the next generation.”
Secondhand might evolve to a premium choice. Executed well, customers may eventually be willing to pay more for the secondhand service than might currently be the case for the value they perceive: the curation of unique merchandise, verification of brand items, professional cleaning, making small repairs, and the shopping experience, including the story behind an item such as its previous owner(s). Such an upscaling from a positioning of “cheap” is what Airbnb achieved: it went from offering a mattress in the living room to selling the experience of feeling like a local resident in one’s destination. Online channels took a similar trajectory: they went from a discount alternative to brick-and-mortar stores to an often-pricier channel (considering delivery fees) with sometimes higher prices or fewer discounts. This type of positioning shift can enable premium pricing and higher margins, while attracting new customers.
Just as secondhand shopping has been destigmatized, there might be learnings to help promote other desirable behaviors. It was partly younger generations’ price consciousness, interest in sustainability, embrace of sharing economy models, desire for self-expression through unique items, and the thrill of the treasure hunt that boosted secondhand buying. These attitudes—and those of higher-income groups—have turned secondhand shopping from a necessity to being in tune with the times. Similar opportunities for making certain behaviors “cool” social signifiers might exist for reusing bags in stores, recycling, using refillable water bottles, seeking help for mental illness, salvaging expiring food from grocery stores and restaurants, and using public transportation (assuming it’s available and viable).
Secondhand shopping (i.e., the purchase of used and preowned items, including luxury categories), is one of the most significant current trends in retail.
According to our Q1 2023 Multicultural Consumer Survey of 2,000 US respondents, people under 35 make up the majority of secondhand shoppers. Lower-income shoppers are a key customer segment; their secondhand purchases focus on essential categories such as clothes, furniture, books, and appliances. But higher-income shoppers have joined them. They have become leading shoppers in discretionary categories such as exercise equipment, jewelry, bags, and plants. With younger and higher-income consumers most committed to buying used items, secondhand shopping has lost its stigma.
Insights for What’s Ahead
The pandemic’s supply chain issues, subsequent inflation, and online selling platforms have boosted the secondhand market—and this may continue. Buying used items was on the rise before Covid-19 due to lower costs and, increasingly, sustainability benefits and the fun of discovering unique items. The pandemic, subsequent supply chain issues, and later persistent inflation have boosted both supply and demand for secondhand items. There is more inventory from people cleaning out their homes and seeking extra income by selling their used items. Secondhand demand initially rose during the pandemic due to supply chain shortages, including shortages for cars, bikes, and home appliances. The elevated inflation over the past two years has furthered the category’s appeal—with no end in sight. Plus, company-operated digital resale platforms (e.g., ThredUp, The RealReal) and peer-to-peer platforms (e.g., eBay, Poshmark, OfferUp, Facebook Marketplace) have facilitated the increase in secondhand buying.
For secondhand retail, the categories expected to grow the most with current shoppers are plants, shoes, and clothes, ahead of toys/games, bags, and electronic devices. Apparel and books are established top secondhand categories, along with furniture, while plants are newer. Demand for houseplants has surged, driven by a greater focus on the home since the pandemic, wellness objectives, and higher prices for larger quality plants. Furniture experienced a pandemic boost, growing by 33 percent between 2019 and 2022, coinciding with IKEA’s first secondhand store in late 2020 and launch of a buyback and resell program. However, growth expectations for furniture are lower, surpassed by other products such as plants, shoes, and toys. The anticipated growth of categories such as plants and shoes, for which hygiene and wear and tear have been an obstacle in the past, suggests that other secondhand product categories could grow or emerge.
While shoes and plants are currently smaller secondhand categories, they are among the fastest growing ones
Age seems to be a better predictor of secondhand interest than household income and race, with younger shoppers the most enthusiastic about buying used items across a range of categories. This includes clothes, electronic devices, shoes, toys, and plants, which are of particular interest to Millennials. While secondhand items have traditionally appealed for their lower cost, sustainability benefits—especially for younger generation—and the thrill of “hunting” for unique items have become additional purchase drivers, along with pandemic-driven supply shortages. All of these have helped reduce the stigma of buying used items, making secondhand shopping a trendy option, and a smart one in times of rising inflation.
Lower-income consumers shop secondhand more for essentials; higher-income consumers spread purchases over more categories, including discretionary ones
Lower-income consumers focus their secondhand shopping on essentials such as clothes, furniture, books, household appliances, and electronic devices. In contrast, higher-income shoppers spread their secondhand purchases over discretionary categories. This includes exercise equipment, jewelry, bags, and plants. (Plants are usually bought by households more affluent than the average consumer.) Given that 61 percent of shoppers with incomes under-$35K report they are cutting back on discretionary spending in this economy (see bar chart below), the focus on essential categories is no surprise.
Secondhand loyalty is highest with younger and higher-income shoppers; plants are the lead category for future purchasing intentions
Still, lower-income consumers intend to expand their shopping for used items, including discretionary categories such as plants, toys/games, jewelry, and exercise/outdoor equipment (see Table below). However, their plans to increase their future secondhand shopping is notably less pronounced than that of the higher-income segment. Apart from efforts to save (see Chart above), this could partly be due to a lack of nearby secondhand stores (a higher share of respondents in the up-to-$35K income category live in rural areas), even if online options exist.
Younger, higher-income, Hispanic, and Black consumers are less likely to cut back on discretionary spending
Higher-income shoppers are the main buyers of several discretionary categories, including plants, the category expected to see the most future growth. Secondhand purchases are no longer just a way to make ends meet. Shoppers under 35 years old are most likely overall to buy secondhand. However, shoppers with household incomes of $75K+, many of whom are married or cohabitate, show similar secondhand buying patterns. These two segments, the young and the affluent, along with Hispanic and Black shoppers, are also least likely to cut their discretionary spending in the current economy and most likely to spend more (see bar chart above). Higher-income shoppers are the dominant shoppers in several discretionary secondhand categories, namely exercise and outdoor equipment, plants, shoes, toys/games, jewelry, and bags.
Overall, higher-income, White, and Hispanic consumers expect to do more secondhand shopping across a range of categories, driving potential growth. Higher-income Black consumers are more focused on secondhand clothes and shoes—unlike their peers in lower-income brackets who buy secondhand more broadly. While higher-income shoppers might have multiperson households, they are least likely to cut back on discretionary spending and most likely to increase it (see bar chart above). These well-off shoppers’ high propensity for increasing secondhand shopping compared to lower-income segments underscores the fact that buying used items is no longer a last resort. Considering that White and Hispanic shoppers make up the vast majority of the US population, secondhand retailers may find these higher-income groups valuable targets. Asian shoppers, who tend to have higher incomes, are overall least likely to buy secondhand, but are dominant buyers of exercise and outdoor equipment (see first table above). In the up-to-$35K income bracket, Asian consumers outpace other shoppers on toys and bags; in the $35–75K income bracket, they are the biggest spenders on plants. Once shoppers embrace used items in one category, they might be more ready to adopt them in others—an opportunity for companies’ targeting campaigns.
Overall, shoppers with higher incomes expect to increase their secondhand shopping the most
Looking Ahead: Further Implications of Secondhand Trends
The price advantage of secondhand goods and other appealing features support sustainability goals. Affordability/value is shoppers' number one motivation to buy secondhand fashion, ahead of product variety, but sustainability has been catching up, as has the “thrill of the hunt.” This is consistent with our prior research and the resulting Hierarchy of Consumer Needs: Consumers value sustainable features, but basic criteria such as the function and quality of a product, price, and customer experience need to be satisfied first. The premium price of sustainable products is an important barrier for consumers, especially during inflationary times. In recent research, we found that 60 percent of US consumers have a decreased interest in buying sustainable products/services due to inflation. The trend of increased secondhand shopping serves the goals of thriftiness and sustainability simultaneously. Considering two recent, consecutive drops in The Conference Board Consumer Confidence Index® as of February, the market for secondhand goods may grow further, propelling sustainability in the process.
Companies that sell new items, especially those that operate in the low-price segment such as off-price brand retailers, should assess what adaptions to their marketing strategy might be needed to maintain their revenue streams. Firsthand retailers might want to remind shoppers of unique features that differentiate their business from secondhand retailers, such as a selection of sizes and colors, multiple units of the same item, and an online channel which many local secondhand stores don’t have. Another route, which many firsthand retailers have pursued, is to add secondhand options of their own merchandise and/or that of other brands to their online and/or in-store offering—either managed in-house (e.g., Patagonia, Lululemon, IKEA, Leica) or by a third party specialized in secondhand operations (e.g., ThredUp, Recurate).
The secondhand trend might make some brands consider focusing their design and production more on classic styles and durability to make them suitable for second- and even thirdhand. While this could impact revenue and profit due to less frequent purchases and lower prices in a brand’s resale market, it can help foster a brand image of sustainability and attract new buyers—and potentially achieve higher prices. In fact, some luxury brands have emphasized their value by pointing out their durability. One of the first brands to do this was luxury watch brand Patek Philippe, positioning its product as meant for multiple generations, helping to justify the high price: “You never actually own a Patek Philippe, you merely look after it for the next generation.”
Secondhand might evolve to a premium choice. Executed well, customers may eventually be willing to pay more for the secondhand service than might currently be the case for the value they perceive: the curation of unique merchandise, verification of brand items, professional cleaning, making small repairs, and the shopping experience, including the story behind an item such as its previous owner(s). Such an upscaling from a positioning of “cheap” is what Airbnb achieved: it went from offering a mattress in the living room to selling the experience of feeling like a local resident in one’s destination. Online channels took a similar trajectory: they went from a discount alternative to brick-and-mortar stores to an often-pricier channel (considering delivery fees) with sometimes higher prices or fewer discounts. This type of positioning shift can enable premium pricing and higher margins, while attracting new customers.
Just as secondhand shopping has been destigmatized, there might be learnings to help promote other desirable behaviors. It was partly younger generations’ price consciousness, interest in sustainability, embrace of sharing economy models, desire for self-expression through unique items, and the thrill of the treasure hunt that boosted secondhand buying. These attitudes—and those of higher-income groups—have turned secondhand shopping from a necessity to being in tune with the times. Similar opportunities for making certain behaviors “cool” social signifiers might exist for reusing bags in stores, recycling, using refillable water bottles, seeking help for mental illness, salvaging expiring food from grocery stores and restaurants, and using public transportation (assuming it’s available and viable).
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