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.
The Retail Trade of Second-Hand Goods in Stores Industry in South Africa
2020
Full Report
R 1 900.00(ZAR) estimated $106.42 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.49 (USD)*
Table of Contents
[ Close ]| 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 |
