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retail trade second hand goods stores industry south africa

The Retail Trade of Second-Hand Goods in Stores Industry in South Africa 2020

Natalie Bryden | South Africa | 18 September 2020

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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.

Introduction

The retail trade in second-hand goods in stores is a diverse, thriving industry. Due to regulations that are being enforced and professional franchise operations that have opened over years, the sector is no longer considered a haven for stolen goods. Often viewed as a sector frequented by people with limited financial means, the global trend towards high quality vintage clothing, repurposed items and environmentally conscious consumption has meant that the industry is attracting buyers that wouldn’t have normally considered second-hand purchases.

Strengths

• Due to environmental concerns, more people are buying second-hand to save resources and reduce pollution.
• During recession, consumers will be looking for cheaper alternatives to new items and may sell or pawn their items to get cash.
• Franchise operations have security and IT infrastructure.
• Second-Hand Goods Act and the National Credit Act offers protection and recourse for buyers.

Weaknesses

• Channel for stolen goods, despite regulations.
• High fees and interest rates for payday loans and pawned items.

Opportunities

• E-commerce channels to be employed to grow a business outside of immediate geographic area.
• In an economic downturn, many people need cash, ensuring supply of goods.
• Increasing consumerism and growing demand for electronic goods from low income customers.

Threats

• Chinese imports are cheap and compete with second-hand goods.
• Increased loan losses/defaults for companies operating in the pawn and payday loan sectors.

Outlook

Economic conditions and sustainability considerations indicate growth in the second-hand industry. The coronavirus pandemic has upended the economy and resulted in consumers examining their lifestyles and consumption habits. In a world of increased online transacting, traditional retail stores will see declining footfall. Creating engaging online experiences will be critical going forward as customers increasingly research products, compare prices and transact online.

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The Retail Trade of Second-Hand Goods in Stores Industry in South Africa
The Retail Trade of Second-Hand Goods in Stores Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Table of Contents

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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