Sustainability is becoming a necessity in retail. Reducing waste and reward second-hand consumption are now key pillars of the commercial landscape, particularly in the fashion, culture, home decor, and furniture sectors.
Rather than discarding items, both retailers and consumers are encouraged to refurbish, reuse, and recycle.
At the heart of this approach lies an important aspect: the reward.
Why reward customers who make the effort to extend the lifespan of products?
How can they be thanked?
Second-hand reward
Retailers, don’t miss the opportunity!
Several brands have already entered the second-hand market: Petit Bateau, Cultura, Vertbaudet, Des Marques & Vous, and many others. Many now offer second-hand platforms or in-store resale options.
A passing trend? Hard to say. But these brands have simply responded to new consumer habits.
In 2023, nearly 3 out of 4 French consumers bought a second-hand product (+9 points vs. 2021). 40% of these buyers make at least one second-hand purchase per month.
Economy first, then ecology!
Yes! For the French, second-hand shopping is primarily about budget rather than ecology. According to the Novascope Observatory, 2 out of 3 second-hand buyers were motivated by saving money, a 5-point increase since 2021, due to declining purchasing power in France.
Consumers aren’t necessarily buying less—they are looking to buy more without increasing overall spending.
The ecological factor is not the primary driver of purchase decisions. Instead, it plays a role for items with limited or occasional use (children’s clothing, small household appliances, DIY tools). These product categories perfectly align with waste reduction efforts.
This trend highlights the growing importance of second-hand shopping in the retail industry. As retailers, you should take advantage of this opportunity to meet customer expectations. By adapting to market trends, you can attract new customers.
Why is it important to reward second-hand purchases?
Consumers play a key role in choosing second-hand shopping. However, the circular economy market is highly competitive, with many players trying to stand out.
You need to create attractive and accessible initiatives to encourage customers to sell their used products in your stores.
Offering a reward is a powerful way for retailers to promote their commitment while building customer loyalty.
Rewards strengthen the relationship between brands and their community. They encourage consumers to bring back products they no longer use in exchange for appealing incentives.
Different types of second-hand reward
Retailers use various approaches to reward second-hand shopping.
Reward second-hand purchases with gift cards
Gift cards offer several advantages:
- They encourage customers to return to the store or online marketplace to redeem their credit. And as we all know—a returning customer is a loyal customer.
- They contribute to increasing the average purchase amount. Customers often spend more than the initial value of the card.
However, make sure that managing gift cards is not too complex for your stores. Your IT systems must integrate smoothly with your gift card program.
And most importantly, focus on customer satisfaction. Offer an omnichannel gift card that can be used both in-store and online. You wouldn’t want to frustrate a customer who is trying to shop responsibly.
Encourage second-hand purchases with vouchers
Vouchers also offer several advantages for retailers:
- Like gift cards, they help keep customers within the brand’s ecosystem.
- They boost sales by encouraging customers to buy new products using their credit.
- They provide flexibility, allowing retailers to promote specific products or attract customers during slower periods.
However, vouchers can be seen as less attractive due to restrictions or usage conditions. Paper vouchers, for example, are not divisible and must be used in one transaction.
Additionally, vouchers carry a fraud risk, especially if they are not properly secured or can be easily counterfeited.
Finally, managing vouchers may require additional resources, particularly for tracking usage and handling customer inquiries or complaints.
Second-hand reward
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Offering cash refunds
A third option is cash refunds. During periods of high inflation, immediate cash incentives encourage customers to participate in the second-hand economy. However, this method does not necessarily help retailers retain customers.
Retailers, it’s up to you to weigh the pros and cons of each option to best meet your customers’ needs.
Rewarding second-hand purchases embodies the circular economy at its best. By encouraging the reuse and repurposing of existing products, it provides a tangible solution to combat waste and promote a more sustainable lifestyle. By adopting this practice, both consumers and businesses can contribute to building a future where environmental preservation is at the heart of our daily concerns.
