Amongst the tributes of the economic downturn, there is born a new age in savvy shopping. The second-hand retail market is booming as a direct result of the current economic conditions. In fact, there is no an outcry to charity shops nationwide as to why they aren’t making more profit themselves.
The second-hand market in London alone contributes to around 14% across all retail outlets, increasing a further 55 in growth this year. It is fair to say that there is opportunity amidst this retail era.
The last financial crisis saw shoppers tighten their wallets and become experts in grabbing a bargain both online and on the high street. The internet saw the meteoric rise of second-hand outlets and the UK consumer bought in wholeheartedly.
The main advantage of the second-hand market was that a customer knew what a product’s value once was. A big unique selling point to a savvy ‘cost-saving’ shopper.
Depreciation of products such as watches is a classic example. Where a new watch would instantly depreciate up to 70% once bought and worn it is easy to see why a website specialising in second-hand luxury watches is doing rather well.
So could this same formula work for other items that once attracted a ‘pretty penny’? Yes, indeed there are much more opportunities for entrepreneurs and start up businesses to see the potential in this market. And what a great way to get started? After all the products themselves are relatively cheap to pick up, and, the resale value offers good margins.
It seems strange that charity shops up and down the country, especially in lucrative areas don’t themselves cash in on resale values more and increase their profitability. Maybe then they become the hunting ground for start-up entrepreneurs looking to take their first steps as retailers.
eBay and Gumtree are the platforms of choice when it comes to resale. Gumtree being the second largest platform alongside eBay with an average of 16.4 million UK users each month and 1 million listings every week. Take a look at Gumtree for Business – a fantastic platform for your business to grow.
There is an opportunity within the second-hand retail market, and it would seem you can break into the market without the high street overheads to get going. But the blueprint suggests that once established online brands have made a name for themselves, it is then they are looking for brand awareness on the high street.
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