Infographic: Secondhand goods - Yay or nay for consumers in Asia?

With the growing global concern on environmental impact due to overconsumption, there is an increasing shift towards recommerce. Global market data firm Statista estimates the global resale retail market value is estimated to reach US$431 billion in 2023.

According to global consultancy Bain, if Southeast Asia prioritises sustainability, it has potential for a big impact on environmental issues and could experience around US$75 billion in annual economic opportunities in the retail, healthcare, education sectors combined.

According to a report by Carousell Group, 72% of users surveyed across its eight markets have made secondhand purchases before. Of that 72% of respondents, 30% indicated that they only buy secondhand where possible, and 21% chose to buy secondhand for environmental reasons.

Electronics and related categories were the most popular choice which respondents felt comfortable to buy and sell in. Malaysia, Vietnam, and Myanmar ranked Electronics, such as computers, mobile phones, and tablets, as the category they felt most comfortable buying from.

In Hong Kong, driven by popular gaming consoles, toys and games ranked top for both buying and selling. Malaysia and Singapore both ranked home, furniture and appliances as a top preference to sell secondhand. Apparel is next most popular to buy and sell secondhand items from, especially in the Philippines, Indonesia and Taiwan.

Why secondhand purchase?

When it comes to the main reasons for choosing secondhand, pragmatism comes out tops. The most popular reason across the region was value for money, with 68% of total respondents choosing this reason. This is most apparent in Hong Kong, Malaysia, Singapore, and the Philippines, with over 70% of respondents selecting this.

Regionally, a substantial 21% chose environmental reasons, and it ranked highest in Hong Kong at 45%, and Singapore and Taiwan with 30%.

This is likely driven by both higher economic development and Millennial respondents, leading to greater sustainability consciousness. This echoes the findings in a report by Carousell Media Group and IAB Southeast Asia and India where 95% of Millennials said that in Southeast Asia and Hong Kong felt that purchasing pre-owned items is more sustainable, with 50% saying that they felt very strongly about this.

Barriers to buying second hand

For barriers to buying secondhand, 30% of respondents who have made secondhand purchases before indicated that they buy secondhand wherever possible. This is the top reason cited in Indonesia (70%) and Myanmar (61%).

For the other 28% of respondents, who have never made secondhand purchases, their top concern is the quality of the goods (68%). A small percentage (16%) of this group of respondents said they have never considered secondhand before.

Regionally, respondents estimated they had an average of 35 unwanted items at home that could be sold. Indonesia had the highest average at 57, and together with Singapore, Hong Kong and Taiwan had the most number of users who estimate they have more than 100 items to sell.

Photo courtesy: 123RF 

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