The second hand economy and its benefits

Transcription

1 2018 1

2 The second hand economy and its benefits Martin Herbst General Manager, Gumtree Australia Gumtree is a pioneer of the sharing economy and one of the leaders of the second hand economy in Australia. Any time you sell, swap, buy or donate a used or unwanted item, you re part of the second hand economy. Since 2011, we ve commissioned research into this multi-billion dollar sub-industry which brings communities together, contributes to Aussie s back pockets, supports not-for-profits and reduces waste from going to landfill. According to this year s findings, almost 100 million used goods were sold in the last 12 months, with a growing number of people selling second hand for the first time in the last year. We want every Australian to benefit from the second hand economy. It s our mission to empower people, create economic opportunity, and to be Australia s favourite local marketplace for all of life s needs. With more than 3 million live listings across hundreds of categories and an average 7 million unique visitors to Gumtree each month, we re a great place to buy, sell and find just about anything. Canna Campbell Author of the 1000 project & founder of SugarMama.TV As a financial planner, my primary role is to create a movement that gives people financial freedom. Part of this is highlighting the opportunities that exist to make extra money, while showing how the smallest changes can have the biggest impact on the future. Gumtree s Second Hand Economy Report lifts the lid on this huge subindustry and reveals every household is currently sitting on approximately 25 unwanted items worth up to 4,200. It s opportunities to make extra income like this that can help offset increased living costs, pay off debt or save towards a home deposit or holiday. 2

3 markets swaps or exchanges buying second hand By the numbers The second hand economy includes donations online sales garage sales Aussies could earn a share of the 34 billion second hand economy Savvy Aussies stand to make 4,200 per household from their unwanted items 89 of Aussies have unwanted items in their home with around 25 unwanted or unused items per household 3

4 65 The main unwanted items: % Books & CDs 57% 54% Clothing, Shoes, & Accessories 48 % 47 % Games & Toys Music, DVDs Electronic goods The main ways Australians are offloading their unwanted items: Donating to charity 72 % Selling 56 % Giving to family & friends 56 % 50 admit to throwing them in the bin Australians consider using the second hand economy to buy or sell when: Spring cleaning 69 % Moving house 60 % 57 % Downsizing Paying off a debt 31 % 28 % Moving overseas 4

5 What kind of unwanted items are we holding onto? Australians are a nation of hoarders, with 89% of the population possessing unwanted or unused items. The average number of unused items held onto per household is 25, which amounts to an estimated value of 4,200 per household with 26% of households admitting to having 40 or more unwanted items. This means that many Australians are missing out on potentially making thousands of dollars from the sale of items they no longer need or use. When we take a closer look at the 89% of Australians holding onto unwanted or unused items; Baby Boomers have more items lying around their house than the younger generations but attach a far lower figure to the estimated value of their items. Total Millenials Gen X Baby Boomers Number of unwanted times Estimated value of unwanted items 4,200 5,040 4,424 2,730 Unwanted items we hold onto The most common unwanted household items haven t changed much since There have been significant increases in the number of Aussies with unwanted Music, DVDs or CDs and games and toys over the years Clothing, shoes & accessories 55% 63% 65% Books 51% 54% 57% Music, DVDs or CDs 39% 54% 54% Electronic Goods 39% 50% 48% 65 % Clothing, shoes & accessories Games and toys 36% 46% 47% 5

6 THE SELLER 56 of Aussies have sold second hand items in the last year It s estimated that almost In the last year million used goods were sold over the past 12 months million Aussie sold online for the first time Online is the most popular way to sell second hand items Of those selling second hand: 88 % sold online 20 % 9 % sold at garage sales sold at markets 6

7 THE SELLER Top 5 second hand items sold The number of people selling second hand clothing, homewares, games and toys and electronic goods has doubled since In fact clothing, shoes and accessories are now the most popular items to sell Clothing, shoes & accessories Clothing, shoes & accessories 12% 20% 22% Homeware and furniture 9% 24% 20% Electronic goods 9% 18% 18% Electronic Goods 9% 16% 16% % 22 % Games and toys 13% 15% 14% Millennials are CASHING IN 61 % of Millennials sold something in the last year Compared to 54% of Gen X and 51% of baby boomers Average earnings per seller 1,577 1,958 1, Average Seller Millennials Gen X Baby Boomers Considering the estimated value of unwanted items per household (average 4,200), it shows there s still a considerable amount of money to be made by selling unwanted items. Australians are generally open to the idea of selling second hand items online to contribute to a deposit for a home (66%). Millennials (80%) are the most likely to consider selling unused or unwanted for this reason, compared to 66% of Gen X and 48% of Baby Boomers. 7

8 THE BUYER 90 62% of Aussies have purchased a second hand item at some stage buy something second hand at least once a year or more frequently The items Australians prefer to buy second hand are: 41 % 31 % 29 % 28 % 20 % Books Cars Clothing, Shoes, Home décor & Furniture Collectibles & Antiques & Accessories On average, second hand buyers estimate they ve saved almost half the cost (43%) of what they would have paid brand new Interestingly, Baby Boomers perceive they save the most by buying second hand. Average savings per buyer: Average buyer: 43% Millennials: 39% Gen X: 43% Baby Boomers: 47% Savvy millenials are making the most of the second hand economy, spending on average more than other generations 2,299 Average Buyer 2,721 1,937 2,091 Millennials Gen X Baby Boomers 8

9 How do we stack up internationally? # items Avg value Australia 25 AU4,200 Canada 23 CA5,955 Mexico 16 M85,766 Italy 21 2,610 Netherlands 20 4,259 Australians have the most unwanted/ unused items Mexicans have the fewest South Africa 17 R41,195 Belgium 19 4,298 UK Germany 21 1,777 Denmark 12 11,409 kr This year, for the first time ever, we ve also conducted research in all of the countries ebay Classifieds Group operates in to see how Australians stack up internationally. The global research shows that Australians are perhaps sitting on the greatest potential with more unwanted items than any other country. However, when compared in AUD, Belgians value their unused/unwanted items the most (AUD 7,035 per household) while those in the United Kingdom value their unwanted/unused items the lowest (AUD 1,584). Australia, already known as one of the world s most charitable nations, doesn t disappoint when it comes to the second hand economy: Australians are the most likely to give unwanted items to charity (72%), followed by the UK (68%), Canadians (63%), compared to just 25% in Germany. Germans are the most likely to have thrown their unwanted items in the bin (54%). The least likely nation to throw unwanted items in the bin is Belgium, with only 28% claiming to throw away their unwanted items. Australia and the UK top the global poll for most eco conscious with 66% and 67%, respectively, saying that the second hand economy is a way to reduce waste/recycle useful items. The Dutch have spent the most buying items second hand in the past year (AUD 5,697 on average) while Australians have spent the least (AUD 2,299 on average). 9

10 The future of the second hand economy The barriers 37 % Being time poor Perhaps not surprisingly, Millennials (41%) and Gen X (44%) are more likely than Baby Boomers (26%) to say a barrier to participating in the second hand economy is being time poor. For those who have not participated in the second hand economy, the number one tool that would give them confidence to buy and sell is a step-by-step guide (39%) We know consumers are eager to make a buck, with two thirds telling us the main benefits of the second hand economy are: cheaper prices and greater savings (72%), reducing waste by recycling useful items (66%) and the ability to cash in and make money (53%). 34 % Uncertain about what items in their household are worthwhile selling 33 % Trust and safety concerns The future The second hand economy is a great way for millions of Australians at various life stages to earn extra cash and to prolong the lifespan of unwanted items. Many Australians are turning to the second hand economy and making it work - by collecting their unwanted items and selling them online through marketplaces like Gumtree or at a garage sale, or by donating to charity or giving to friends and family. As The Second Hand Economy Report shows, there s plenty of ways for Australians to donate, earn some extra cash and ultimately save waste from landfill. The accessibility of the second hand economy has changed a lot over recent years, mainly with the advent of online technology, services and platforms. Gumtree s seven million-strong community is testimony to this. It really does pay to look around your house and imagine those unwanted goods are little bundles of money. Over the past 10 years, Gumtree have helped enable the growth of the second hand economy and helped people take control of their lives with what we believe is essentially an online life tool. 10

11 Cashing in is easy Expert Tips To help overcome the barriers to entering the second hand economy, Gumtree has engaged a team of leading experts to provide consumers with tips of how to enter the second hand economy - whether it s to start selling unwanted items, pick up a valuable find or to upgrade to the latest tech. 11

12 The money you make from selling your unwanted items can go towards creating financial freedom for yourself Canna Campbell money expert and founder of SugarMammaTV Declutter Decluttering is the first step to unearthing valuable items you may have forgotten you were holding onto. Set and forget mentality Put any money from sales straight into your savings account to avoid spending the cash. Apply a set and forget mentality. Sell your items The money you make can help pay off those debts, build up some savings or even pay for that holiday or put towards that house deposit. If you're hesitant to begin investing, selling on Gumtree is a great way to put together that first 1,000 towards earning a passive income! Think minimal The best way to save is to subscribe to principles of minimalism. Get yourself a capsule wardrobe, strip back your furniture, be critical about what items in your home are meaningful to you. Sell the rest! Buying second hand is a great way to create a unique look for your home that can t be found anywhere else - and it helps the environment! Kyal and Kara Demmrich Former Blockheads and interior designers Keep an open mind You can always make things unique to your style. Upcycling can be as simple as painting, sanding or upholstering - but you can always add your own features. Think outside the box Maybe a ladder is better used as an indoor plant stand or an antique oven as a storage space. Use your imagination and you ll find gems everywhere. Keep searching Don t give up after your first search. There are tens of thousands of second hand items being listed on Gumtree for sale every day. Expand your search area. It s great when you find something local, but if you re after real gems, you need to be willing to go the extra distance to find them. Try listing You can list almost everything and anything! We often have left over building materials and people are genuinely stoked to pick up a bargain for their own home renovations. 12

13 Cashing in on your old tech and buying second hand is an easy way to help upgrade to the latest gadgets Trevor Long Technology commentator and gadget guru Think ahead When you buy a new item, think about its second life there and then. Protect the device and preserve the original packaging. This adds huge value at resale time. Timing It s all about timing. Capitalise on trends in tech. The price of last year s smartphones should drop as soon as the next generation is announced. Try second hand If you re not 100% sure you need new tech, second hand is a great way to see how trends like voice activated assistants (Google Home) might fit into your lifestyle. Video demonstration Ask for a video demonstration. Get a recording of the device working in action to ensure everything is in order. Ask to see things like a working bluetooth connection or speed of device. Buying second hand is the easiest path to getting the car of your dreams. Chaz Mostert V8 Supercars racing driver and car expert Check the car s history Buy a Car Record Report. For as little as 20 you can check out a vehicle s valuation, odometer comparison, engine info and safety ratings - before you even view it! Peace of mind For reliability, try to look for cars under 60,000KM with a good service book. Value for money Searching for the car of your dreams? Value for dollar when buying second hand gives you the opportunity to experience something you might not be in a financial position to buy brand new. Inspect the car Take someone with you and trust your gut during the test drive. Listen out for odd sounds coming from the engine or underneath the car, and above all, trust your gut. Check under the bonnet for the oil and lubricant levels, check the tyres and all of the lights and all of the internal features. If it doesn t feel right, there s plenty of others out there! 13

14 2018, Gumtree AU Pty Ltd. Gumtree commissioned YouGov Galaxy to prepare the Second Hand Economy Report 2018 Contents of this report may be reproduced provided appropriate credit is given to the source. 14