From rags to riches

3 September 2009 | By Louise Jack

In these cash-strapped times, it will come as little surprise that more people than previously are willing to consider buying second-hand goods. But an exclusive study conducted for Marketing Week by Lightspeed Research reveals that every single adult in the UK – based on a representative sample – would now consider buying something second hand.

This is a distinct change from previous years, as 16% of those surveyed say they only started buying second-hand goods in the last 12 months.

For the majority of people, second-hand purchases tend to be smaller items, such as books, CDs, DVDs, toys and games.

When asked to nominate which items – from a list of their own second-hand past purchases – they buy most frequently, 38% of respondents report that books are their most frequent second-hand purchases.

The key motivator overall for consumers buying used items is unsurprisingly saving money, followed by people simply loving a bargain. Men are much more likely to say saving money is their main motivation, while women are much more excited about getting a bargain.

Lightspeed marketing director Ralph Risk argues: “This difference might reflect the practicality of males, whereas with females there is a more emotional response. For a marketer, that could be very useful information in terms of how they frame messaging to either sex.”

Village fête

Men are also more likely to buy larger items second hand whereas women prefer smaller items. Women are also much more likely than men to have bought goods from a charity shop or at a school or village fête.

Women are more likely to buy second-hand books, while men are more likely to buy second-hand CDs or DVDs. Men are also more likely to buy a used car.

Risk says: “This difference between which products men and women will buy is interesting.” He suggests that perhaps it is simply that more men buy cars than women, so there are also likely to be more sales of used cars to men. He adds: “That’s possibly a bit of a stereotype but I think it’s still valid.”

Risk says the same may also happen in other categories. “Women may be more involved in buying white goods, such as washing machines.” But it’s tricky to check this hypothesis because he admits that “white goods are very unpopular as second-hand purchases”.

A consumer’s sex also comes into play in terms of which categories of goods they are prepared to buy second hand and where their first choice is new items.

Overall, there is a clear preference from the majority of respondents for new shoes, clothes and homewares. Books and cars are the items most people look to buy second hand rather than new.

However, women (21%) are more likely than men (15%) to opt for second-hand clothes as a first choice. Women are also more likely to select second-hand children’s clothes as a first choice (27%) compared to men (18%).

It is not only sex that plays a part. Age also has an impact on whether consumers buy second hand or not and what they choose to buy new or used.

In terms of age, 18-24 year olds are most likely to nominate saving money as the main reason to buy second hand, with older age groups less likely than the youngsters to select this option, although it is still the most compelling reason for each age group.

Older generations are the most likely to buy second hand to support a charity, with one in five of over 55 year olds claiming this is their main reason for buying second hand.

In making a choice between buying new or used, 18-24 year olds are the most likely to opt for second-hand DVDs and CDs as a first choice, while the over-55s prefer to buy these new.

Several factors appear to have some bearing on why different ages behave in divergent ways. One is that there are different motivations and attitudes among each age group towards second-hand goods in general and certain categories of used items. Consumers’ levels of income also plays a role in why different ages buy second-hand goods differently.

Charity shop

Three-quarters of respondents buy second-hand items from eBay, while almost half buy second-hand from Amazon. Under-35s are the most likely to buy from eBay or Amazon. The over 45s are the most likely to have bought from a charity shop, with the under 35s the least likely.

Risk speculates: “I would say that is because the younger age group is more comfortable with eBay and familiar with how it works, whereas the older generation may have concerns about security. Perhaps they are uncertain about how auction and swap websites operate.”

Willingness to buy second hand does not appear to be linked to income but which online brands are used to buy goods does seem to be affected by salary.

Higher income earners are the most likely to buy second hand on eBay or Amazon – 83% of respondents earning £50,000 a year or more buy second hand on eBay, compared to just 73% of those earning £20,000 a year or less. And 55% of those earning £50,000 or more buy second hand on Amazon, compared to just 36% of those earning £20,000 or less.

Looking further into second-hand buying habits, those that always try to buy second hand are the most likely to buy used goods on eBay and Amazon. These people are also the most likely to use other auction and swap sites.

Nevertheless, charity shops are the most common places to buy second-hand items, followed by second-hand shops and garage or car boot sales. Environmental concerns also play a role in why people buy second hand. Respondents who say that they always try to buy second hand are the most likely to say that the main reason is because second hand is “greener” (9%).

The research suggests that everyone is willing to buy some kind of item second hand, but as Risk says: “They all like doing it in different ways.”

While the second-hand market is complex, differing consumer habits depending on income, age and sex can help enlighten marketers from both the charity shop sector and online auction sites. With a potential market of 100%, it’s an alluring prospect.