Second Hand Small Domestic Appliances Market Trends

Growth Drivers

• Growing Young Working Professionals - There has been growing demand for second hand domestic appliances among youth in developing nations owing to rise in young working professionals, who could afford second hand small domestic appliances since these appliances are budget friendly. According to the U.S. Bureau of Labor Statistics, in July 2022, 55.3% of young people (those between the ages of 16 and 24) were employed. This number climbed from 54.4% in July 2021.

• Rising Demand for Second Hand Products During COVID-19 Pandemic - As a result of the job losses, economic instability, and closures of certain businesses without a strong online presence that occurred during the COVID-19 pandemic, the demand for used items surged. Prevalence of this trend in the future is therefore expected to drive the market growth. Daily active users on one of the famous second hand products selling online platform, OLX, were increased to roughly 30% since January 2020, while demand has increased to about 25%.
• Surge in Price for Home Appliances - For instance, the prices of consumer electronics and home appliances were predicted to increase between 2% and 5% starting at the end of May 2021 or the first week of June as manufacturers passed on the effects of higher input costs to consumers.
• Rise in Middle Class Population - Global middle-class population rose from about 900 million to approximately 2 billion individuals between 2011 and 2019, an average annual rise of about 50 million people.
• Surge in Environmental Hazards Related to E-Waste - According to the Global E-waste Statistics Partnership (GESP), global e-waste production hit a record 53.6 million tonnes in 2019, an increase of 21% in just five years. By 2050, the yearly generation of e-waste could exceed 120 million tonnes.

Challenges

• Growing Concern for Quality for Used Appliances Sold Online - Consumer safety is further complicated by the internet sale of used appliances. Trading Standards, which are employed by local councils, are responsible for regulating the sale of used electrical goods, but since so many sales are taking place online, particularly through social media, there is a lack of efficient safety enforcement, which leads to the open sale of vintage, risky, or recalled products. Additionally, as used products don't have the most recent safety features, the market's growth would be hampered if the consumers' second-hand small domestic appliances don't function effectively, i.e. if there are any technical problems.

• High Maintenance and Repair Cost
• Used Products Not Sold at Fair Price