Circular trade is growing, but will second-hand shopping be visible during the Christmas season?
The value of the consumer market for circular trade in Finland is already nearly EUR 1.4 billion, and the demand for second-hand products is constantly growing. Although the sales peak usually occurs in the spring and autumn, the monitoring of recent weeks shows that second-hand shopping is also increasing in Christmas present purchases.
According to a study* published in September, Finland is the world’s leading country in the purchase of second-hand goods, and the value of the consumer market for circular trade is already nearly EUR 1.4 billion. The sales peak of circular trade usually occurs between April and October and not during the seasons before Christmas in November–December, as is usually the case in the retail sector. The earlier sales peak of circular trade, compared to the rest of commerce, can be explained to a large extent by its different product distribution.
“There is also another explanation, as second-hand shoppers start planning and implementing their Christmas purchases earlier than other consumers,” says Jaana Kurjenoja, Chief Economist at the Finnish Commerce Federation, describing the behaviour of second-hand shoppers.
However, the Christmas shopping monitoring** carried out by the Finnish Commerce Federation in recent days and weeks raises expectations that this year’s purchases of second-hand products will also increase during the Christmas season. Indications of this include the increase in the number of Finns’ visits to the websites of circular commerce during November.
Second-hand shoppers are keen to follow the November sale campaigns
The main motive for buying used products as Christmas presents is to save money. The price-drivenness of second-hand buyers is highlighted in their interest in following offer campaigns: four out of five people who also buy second-hand goods as Christmas presents follow the offer campaigns in November, while the share of others doing the same is half. The majority, 70 per cent, of second-hand shoppers also feel that impulse purchases of second-hand goods are responsible and can be made with good conscience.
“More than 40 per cent of second-hand shoppers follow the sales campaigns of foreign online stores, and one-third of them also buy from Chinese online stores and platforms in November-December,” says Kurjenoja, explaining the customers’ behaviour.
“For some, circular trade and Chinese low-price e-commerce are just alternative channels for buying new goods,” says Kurjenoja.
Young people especially wish for products purchased new as presents
Finns are very divided when it comes to whether they wish to receive new or used Christmas presents. Nearly 30 per cent want a used product as a present, so that they don’t have to worry about the financial situation of the person giving the present. A quarter, on the other hand, specifically want a new product with a good resale value.
Young people under the age of 25 particularly have a very different attitude towards new or used Christmas presents.
“The divided attitudes of young people are understandable because while they buy more second-hand presents than others, they also wish to receive presents that are purchased new because of their financial situation,” says Kurjenoja.
46 per cent of adults under the age of 25 wish for presents purchased new because they cannot buy so many new products themselves. 42 per cent even think that the person giving the second-hand present could have given an item purchased new, but they just wanted to save money.
However, almost half of those under the age of 25 are satisfied with second-hand presents due to the financial situation of the person giving the present, and 40 per cent want to receive used goods as presents because they buy used goods themselves.
“Of course, most people of all ages appreciate presents, whether they are used or new,” says Kurjenoja.
* In September, Jaana Kurjenoja, Chief Economist of the Finnish Commerce Federation, carried out a study on the consumer market of circular trade, which was also funded by the Federation of Finnish Special Commodity Trade ETU.
*The reports on and monitoring of Christmas sales are based on Similarweb’s data on website visits and consumer surveys conducted by Kantar Finland. Jaana Kurjenoja, Chief Economist of the Finnish Commerce Federation, is in charge of the analyses of the reports.
Further information: Jaana Kurjenoja, Chief Economist, tel. +358 (0)40 820 5378, jaana.kurjenoja(at)kauppa.fi