You may be wondering: why is the resale market so popular? The industry is booming, and it’s largely due to the rising needs of millennials and Gen Z, the next generation of consumers. E-commerce stores and tiny disruptors have innovated traditional sales strategies. Some major brands have responded by collaborating with specialized companies in the secondhand industry. As consumers’ needs changed, so did the resale industry. The recent COVID-19 pandemic has sparked an unprecedented surge in online shopping of secondhand goods at online resale platforms like https://www.backflip.com/ and other popular marketplaces. This article will explain how the resale market became famous globally.
Growth Of The Resale Market
With global e-commerce sales up by 129% between Q1 and Q2 2020, the resale market is poised for rapid growth. Despite the unprecedented growth in online sales, traditional retailers faced some supply chain challenges that slowed much of this growth. A February structural shock in China and a global economic shutdown further exposed the weaknesses in international supply chains. The perfect storm created an ideal environment for the secondhand market to grow.
Recent statistics show that over 60% of retail outlets are embracing secondhand. And nearly 24,000 companies and organizations are interested in the growing market. And women are the largest demographic group for secondhand shopping. The proportion of female consumers in the resale market has grown by 24% from 2016 to 2017, with more than 70 percent of female shoppers actively participating in the secondhand market. It’s a great way for retailers to stay relevant and attract new customers.
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Impact Of Resale On Business Models
Resale is a growing business model that gives retailers more control over inventory and a way to increase customer lifetime value. While it requires more investment, it is a lucrative revenue stream and can help build brand loyalty. Retailers that participate in resale programs can also use the data they collect from resale sales to improve online marketing. In addition to the revenue, resale can increase the number of repeat customers by increasing purchase frequency.
Resale models encourage retailers to create products that last for long periods. For instance, resale clothing must be made of durable materials to maximize resale opportunities. Electronics can also be designed to be easy to repair or replace components. The resale-friendly design encourages innovation and improves product quality. It is also better for the environment. Businesses that embrace the resale model will also have fewer problems with product quality.
Influence Of Celebrities On The Resale Market
As the influence of celebrities on the resale market grows, we need to understand the contextual factors that affect its impact. In addition to the individual factors, research must consider subgroups and location. Nevertheless, the impact of celebrities cannot be overlooked. Marketers utilize celebrity endorsements to make advertising more credible and to increase brand identification among consumers. Celebrity endorsements are now the most powerful marketing strategy in ads, having a bigger influence on customers’ views and purchasing intentions, especially with the growing secondhand market. The millennial generation, particularly college students, are viable buyers and brand loyalists. Celebrity-brand congruence and publicity have a significant impact on customer choice and purchasing behavior. The influence of celebrities can also be measured through trustworthiness. Credibility refers to the extent to which consumers trust the endorsers. If a celebrity is deemed trustworthy, it will have a higher persuasive effect on the consumer. In addition, consumers are more likely to trust someone they know.