Second-hand: which model to choose and where to start?

Clément Delille, Manager Data Business Consulting and retail sector expert, shares his insights on the second-hand market. This growing market presents development opportunities but does not garner unanimous support.

Key Takeaways

• The second-hand market is thriving in France as a response to economic challenges, inflation, and environmental concerns.
• Online platforms like Vinted have become essential players and are shaping the market. With other actors such as Amazon, Carrefour, and Leclerc investing in this space, it is urgent for businesses to position themselves.
• While second-hand can seem threatening (in textiles and electronics), it can also represent a genuine opportunity if the associated challenges and key success factors are understood.
• Choosing the right second-hand offering model and implementing the necessary initiatives is crucial for providing an optimal customer experience and nurturing brand preference.

Second-Hand: A Revolution in Progress

“Don’t throw that away; let’s sell it!” This simple phrase resonates as a rallying cry in a world where the second-hand market is gaining increasing prominence.

Driven by a growing environmental awareness and changing consumer behaviors, this market is expanding at a dizzying pace. Now, 61% of French people instinctively look for second-hand products before opting for new ones.

However, this evolution is not without challenges. The successes of platforms such as Le Bon Coin and Vinted, as well as Zara’s Pre-Owned initiative, are shaking up established habits. Entire sectors, such as ready-to-wear fashion and the nonprofit sector, are seeing their traditional models questioned.

It is time to take action. With giants like Amazon investing in the second-hand market, the urgency to position oneself is becoming critical. Transforming this trend into an opportunity requires understanding the key success factors and defining an ambitious strategy.

The Power of Digital Platforms

Second-hand is no longer a marginal trend; it has become an undeniable force. Vinted and Le Bon Coin, two of the main players in e-commerce in France, are proof of this. With 11 million French users in 2019, Vinted has captured the hearts of consumers, particularly young adults.

Innovation is at the heart of this revolution. Vinted continues to reinvent itself by introducing new categories, strengthening its professional offerings, and even providing quality controls for luxury products to reassure the most discerning buyers.

Want to venture into the second-hand market? Explore with us the opportunities to seize and the essential prerequisites for succeeding in this thriving market.

Why Launch a Second-Hand Offering?

• Defend Market Share: Capturing a significant share of the second-hand market is essential for seizing growth potential.
• Optimize Sales Channels: Integrating second-hand products can revitalize online or in-store sales channels by adjusting prices and attracting traffic.
• Understand and Engage Consumers: Leveraging the second-hand market allows businesses to reach new customers and encourages existing clients to participate in a cycle of buying and reselling.
• Focus on the Long Term: The second-hand market builds trust in product quality and addresses the growing consumer need to ensure the resale value of products before making costly purchases.
• Protect Brand Reputation: Offering quality second-hand products is crucial for safeguarding the brand image against counterfeits or defective items, requiring responsive customer service and rigorous legal oversight.
• Commit to Responsibility: Incorporating second-hand offerings into a CSR strategy enhances brand image and addresses consumers’ environmental concerns, providing an opportunity for commitment to sustainability and compliance with new non-financial reporting requirements.

First Challenge: Defining Your Model

The first challenge is to define the right model for your second-hand offering. This begins with clarifying what second-hand should represent for your brand: resale of used products or refurbishment? This choice will impact customer experience and operations, including considerations such as the need for repairs and warranties.

Furthermore, following the circular economy law, an increasing number of retailers are integrating unsold products into their second-hand offerings to clear inventory.

We identify three main models based on the extent of the resale process (collection, distribution, potential certification, and reprocessing) integrated or not within your organization:

• Marketplace Resale Model: You connect customers and resellers for your second-hand products, potentially including those from other brands. This requires significant marketing and technological investments and is particularly interesting for brands with strong recognition and community (e.g., fashion, baby products, sports).
  Example: The Decathlon Seconde Vie platform, which combines resale of the brand’s products with third-party sales of sports products and accessories.
• Mixed Model: You rely on partners for one or more steps of the process, such as outsourcing the sourcing of the offer while maintaining internal control over sales and distribution. This can help secure certain stages but requires a sufficiently substantial residual value of the product.

Example: Samsung’s second-hand offering, which has chosen to internalize the refurbishment and resale of its used products while outsourcing take-back services through Evolis. Some players, like Circular X, support retailers and brands in implementing their second-hand initiatives.

• 100% Integrated Model: You control the entire chain, including customer experience and product quality, which may require additional investments in logistics, sourcing, and sales. This model is particularly interesting for brands distributed through their own network of stores (logistical synergy) and for products that are repairable and refurbishable (e.g., household appliances, furniture).Examples: Petit Bateau’s second-hand initiative or the RépareSeb initiative from the eponymous group. This model is also adopted by E.Leclerc members who set up buying/reselling corners within their own stores. 

The choice of model will depend on the residual value of the product, which will determine the viability of sourcing, its reliability, and your ability to generate sufficient margins from this activity.

What initiatives to launch for a successful entry into the second-hand market?

• Define Your Offering: Strike a balance between attractive second-hand products without harming your current sales. Understand customer expectations and adjust your offering accordingly, ensuring it complements your new products.
• Raise Awareness: Implement a solid communication strategy to announce your entry into the second-hand market and capture consumer attention.
• Adapt Customer Experience: Harmonize the online and in-store user experience to integrate your first and second-hand offerings. Ensure your in-store staff is well-trained to represent your commitments.
• Foster Loyalty and Engagement: Evolve your CRM strategy to encourage resale, reactivate inactive customers, and tailor your communications. Also, ensure that after-sales service is adapted to strengthen customer loyalty.
• Orchestrate Your Distribution: Adjust teams—from purchasing to logistics—to ensure an optimal user experience at every stage, from collection to product distribution.
• Manage the Activity and Secure Data: Measure performance, ensure the robustness of your website, and comply with data security regulations. Adapt your technical stack or reporting to meet your objectives.

Converteo can support you at each step of this challenge.

To Go Further

• Avoid the Greenwashing Trap: Before rushing into an eco-focused communication strategy, take a moment to evaluate the depth of your commitment. While second-hand offerings are a step toward sustainability, they are not a guarantee. Measure the impacts of your logistics, compensate for potential reductions in donations to charities, and integrate concepts of reparability to genuinely propose a sincere approach. In this regard, have you reviewed our sustainable e-commerce barometer that evaluates over 50 companies on their environmental commitments through a variety of parameters?
• Regardless of the Model You Choose: It is important to approach your second-hand offering like any other product offering. Take the time to define your strategy in advance, ensure good alignment with the rest of your range, and make sure you have the right tools and processes to manage your performance while being aligned with your customers’ needs. Converteo, as an independent player in solution providers, supports you from strategic framing to operational management and helps you build a technological foundation suited to your challenges. Our unique position at the intersection of consulting, technological solutions, and data allows us to offer you an integrated approach tailored to your issues. Let’s discuss this.

Contributors: Madrigale Darpas, Guillaume Ziza

Sources :

1. Etude Denjean & Associés, 2018
2. Etude Sofinco & Tripartie, 2023
3. Page Amazon Seconde Main & Exemples de jouets d’occasion dans les rayons
4. Data Similarweb
5. Etude BCG, 2022