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The Retail Trade of Second-Hand Goods in Stores in South Africa
BY Natalie Bryden
South Africa
18 September 2020
R 14 400.00 (ZAR)  
estimated $ 866.34 (USD) *
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Retail Trade of Second Hand Goods in Stores


The second-hand goods retail trade is often viewed as one that caters for poor people, but the global trend towards high quality vintage clothing, repurposed items and environmentally-conscious consumption has seen the industry attract buyers that wouldn’t have normally considered second-hand purchases. Due to the enforcement of regulations and increase in professional franchise operations, the sector is no longer considered a haven for stolen goods. There are an estimated 22,000 second-hand and pawn dealers in South Africa. Most second-hand stores are commercial operations, but some operate on behalf of, or in aid of a charity.


Cash Advance and Payday Loans


With irregular income and high debt levels, many South Africans cannot get loans from traditional lenders such as banks, and many turn to pawn shops that offer cash advances and payday loans. Companies like Cash Converters and Cash Crusaders also act as pawnbrokers by offering secured loans to people using personal items such as cellphones, jewellery and laptops as collateral. Pawn transactions are not credit agreements but are covered by the National Credit Act.


Report Coverage


This report focuses on he retail trade in second-hand goods in stores and includes traditional and franchise model second-hand dealers, pawnbrokers, clothing and book exchange dealers. It excludes trade in used motor vehicles and motorcycles and trade of scrap metal, which are classified under different siccodes. This report includes information on the state and size of the sector and influencing factors, with profiles of 16 companies including major franchisers such as Cash Crusaders, Cash converters and Books Galore. Other companies profiled include Capital Pawn and Pawn Stars as well as second-hand clothes dealer Dlamini, which trades as Flair Vintage and Botshabelo, which uses the funds from sales to care for children.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 4
4.1. Local 4
4.1.1. Developments 7
4.1.2. Regulations 7
4.1.3. Enterprise Development and Social Economic Development 10
4.2. Continental 10
4.3. International 12
5. INFLUENCING FACTORS 16
5.1. Economic Environment 16
5.2. Environmental Concerns 17
5.3. Coronavirus 18
5.4. Improved Business Practices 18
5.5. Cyclicality 18
5.6. Crime, Physical Security and Cybersecurity 19
5.7. Information Technology (IT), Research and Development (R&D) and Innovation 20
5.8. Labour 20
6. COMPETITION 21
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 23
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 24
APPENDIX 1 26
Summary of Notable Players 26
COMPANY PROFILES 28
B DLAMINI 28
BABETTE CLOTHING (PTY) LTD 29
BOOKS GALORE HEAD OFFICE CC 30
BOTSHABELO 32
C FOURIE 33
C JOEL 34
CAPITAL PAWN CC 35
CASH CONVERTERS SOUTHERN AFRICA (PTY) LTD 36
CASH CRUSADERS FRANCHISING (PTY) LTD 41
FUNDRAISING SOLUTIONS CC 44
HAS BEEN OFFICE FURNITURE (PTY) LTD 45
L FIELDGATE 47
PATOU BOUTIQUE (PTY) LTD 48
PAWN STARS CC 49
RAGS AND LACE 2014 (PTY) LTD 50
T MULLINS 51