2nd hand Retailing Franchise Industry

2nd hand retailing Franchise – a burgeoning industry

 2nd hand retailing in South Africa is becoming a massive industry and now also a Franchise Industry.

The market for 2nd hand items grew markedly over time as the industry evolved. Product throughput happened as a natural occurrence due to organic demand and changing trends & fads. People began to trade-up, discarding their old clothes, thereby implicitly flooding the market. An oversupply of product into market from manufacturing and industrialized economies led to designer label products to sit on racks and display shelves.

This birth of a burgeoning 2nd hand market became the motor for 2nd Take to offer our win-win business concept as a Franchise Opportunity in South Africa. 2nd Take  has taken this a step further by formalizing the 2nd hand re-sell concept by ensuring that the concept moves from the online space to physical retail space like no other. The Sea Point store is flagship – showcasing the category on a broad scale and driving the concept further into homes and wardrobes. This mirrors the situation in other Fashion Capitals of the world – examples include Vestiaire in Milan, Winni Schneider in Germany and Paristopten in France.

 2nd hand clothing - sporadically littered in store

2nd hand clothing – sporadically littered in store

Over time we have further developed and formalized our Franchise store concept. The marketplace seems to have been waiting for us and we, 2nd Take have contributed to putting the trade of second-hand clothing formally on the map. We had help in form of many celebrities, who endorsed the recycling of  fashion and the sale of 2nd hand items. Our store has been tailoring requirements and is defined by our buyer requirements.

The aforementioned situation is further characterized by the following:

  • Category diversification occurring naturally – at 2nd Take all upmarket categories of clothing are up for grabs.
  • Brand conscious consumers are displaying a very positive attitude to top quality and upmarket designer 2nd hand clothing items

Three caveats:

(1) In South Africa, there is a notable barrier to entry in the second hand retail market. This barrier is reduced to elements such as import licensing for 2nd hand goods which is taxable at a rate of 30% plus the VAT charge – a requirement for placing the goods in a marketable and saleable condition.

(2) 2nd  Take as Franchisor has made the necessary research, to be able to establish the best route to market with the aim of growing the industry and satisfying consumer demand.

(3) A final more notable threat is the counterfeit market, which represents an unquantifiable threat.

The second-hand market, presents a lucrative market filled with opportunity when approached correctly. We at 2nd Take firmly believe we have the right concept and business model, but are very aware not be be complacent and to develop and grow with market developments as we see them.

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