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Second-hand luxury gains momentum in the country amid rising prices

Right at the beginning of the pandemic, businesswoman Gabrielle Carvalho, 34, and two friends created a bazaar to get rid of unused pieces in the wardrobe, with the idea of ​​making room for new items and recovering a portion of what they had invested in the old ones. “looks”.

Faced with people’s interest in the items, the friends decided to open the thrift store “Vende, Amiga!”, focused on items from the premium and luxury sector.

What started out as a WhatsApp group is now getting ready to open a physical point of sale for second-hand items. “Our main customers are young people who like fashion and want to consume luxury items, but at an affordable price.”

Until she finds an address, the businesswoman uses her apartment as a “showroom” for the pieces.

Like Gabrielle, other entrepreneurs saw the increased demand for used items as a business opportunity.

Since the beginning of 2021, 6,700 stores that sell these items have been opened in the country, according to a survey by Sebrae, which considers the small retail of various second-hand products – from thrift stores to second-hand bookstores, in addition to antique stores -, without the subtraction of stores in this branch that closed their doors in the same period.

Even with the entire second half of 2022 being accounted for, the number of new stores in this business model is almost equal to the openings of the previous two complete years (2019 and 2020): 7,100 units, a difference of only 6%.

One of the reasons for the expansion of second-hand stores is the increase in prices in the country, which reduced the purchasing power of Brazilians. With the family budget tight for two years of high inflation, the trade in these products remains heated in Brazil.

According to the Extended Consumer Price Index, the accumulated 12-month inflation was 9.6%, despite the deflation of the last two months. In July this year – the most recent data available -, the accumulated variation of inflation for clothing reached 18.16%, almost double the general rate for the period.

extra income

At the same time that rising prices made many products and services less accessible, leading people to review their consumption pattern, Brazilians, who on average lost income in the last year, saw unused products at home as a way to raise money. extra.

“We started among friends, selling to raise money and buy other pieces, but it ended up turning into a business”, says Gabrielle. “As luxury brands have made high price adjustments, buying an item at the thrift store is the only way to consume this type of product for many people.”

Hand of individual entrepreneurs

A bridge between those looking for cheaper products and those looking to earn extra income from them, the used trade grew in an environment of skyrocketing inflation, also opening up opportunities for people who lost their jobs.

Out of every ten stores opened since 2021, practically nine (88%) belong to individual microentrepreneurs (MEIs), a category in which entrepreneurship is often motivated by necessity – as is the case of people who opened their own businesses because they were unable to return. into the job market or needed an income supplement.

For Silmaria Marques, 34, the thrift store Cravo com Canela, opened in his ex-father-in-law’s garage in Itaquera, on the east side of São Paulo, is a way of guaranteeing extra income for the family. She divides her time between her steady job as an immigration assistant and her dream of selling second-hand clothes. “I’ve always loved shopping at thrift stores, not only because of the cost, which is much lower than new ones, but because of the exclusivity of the pieces you can find,” says Silmaria.

different styles

At the thrift store in Itaquera, customers range from people who want to spend little on clothing, young people linked to sustainable fashion and also other second-hand sellers, who have their businesses on the web. To guarantee news every week, Silmaria looks for pieces in charity bazaars. “Since the beginning of the pandemic, store traffic has grown by about 40%.”

The consumption of second-hand items continues to be heated in the world, whether due to environmental awareness or the shorter money of consumers.

According to data from a study carried out by the Boston Consulting Group (BCG), the forecast for the used fashion articles market – also fueled by society’s greater concern about the environmental impacts of textile production – is for a growth of 15% at 20% by 2030.

Based on data collected with the Enjoei website, the study points out that, among consumers of second-hand items, 12% of the wardrobe is occupied by purchased second-hand items – that is, the clothes won are not included in the account.

This percentage is very similar to that of mature markets and, according to the intention of these consumers, it could reach 20% by 2025, which represents a potential market of R$ 24 billion. The ability to buy premium items at lower prices is one of the reasons behind the growth in used car consumption.

eye giants

In addition to small businesses like the one opened by Silmaria and Gabrielle Carvalho’s “Vende, Amiga!” (the latter aimed at a young audience who likes fashion and wants to consume luxury items, but at an affordable price), the second-hand market has reached the radar of the big fashion corporations.

Recently, Arezzo&Co bought the virtual thrift store Troc with the aim of boosting its circular fashion strategy.

In March of this year, Grupo Jereissati, owner of the Iguatemi shopping mall chain, acquired a shareholding in the Etiqueta Única website with an investment of R$ 27 million. Outside Brazil, luxury brands such as Gucci, Burberry and Stella McCartney have also dedicated part of their investments to the “vintage” items sector.

projections

In Brazil – The thrift store, second-hand and antique stores market should remain high and growing in the coming years in Brazil, according to a survey by the Boston Consulting Group (BCG). The circular fashion segment alone, according to BCG’s projection, should grow between 15% and 20% by 2030 in the country.

Abroad – In foreign markets, where the consumption of second-hand items is already a consolidated consumption habit among customers, the projection is to grow 20% over the next three years, with an estimated market potential of R$ 24 billion, according to data from the BCG

The information is from the newspaper. The State of São Paulo.

Source: CNN Brasil

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