Dive Brief:
- The so-called "sharing economy" has produced a new segment of millennial consumers one analyst is calling “NOwners,” who prefer to share, rent or trade products instead of buying them, according to reporting by Reuters.
- Resale marketplaces such as Kidizen, Yerdle and Crossroads Trading Co. allow customers to swap or buy used items like used clothes and household goods.
- Shoppers in the NOwner space cite the environmental benefits of reuse and rental as an attractive benefit of the practice.
Dive Insight:
The appeal of buying new is fading among millennials comfortable with the sharing economy. Following in the footsteps of successful startups such as Zipcar and Airbnb, companies specializing in the resale and rental of lightly-used goods are growing fast by luring in a new group of shoppers christened "NOwners," who prefer to use apparel and appliances and other goods for only a short time rather than stockpiling possessions.
Some retailers are embracing this new customer segment. Powered by smartphone apps, Kidizen and Yerdle make it easy to buy used children’s goods and household items and sell them back after use, while Rent the Runway allows people to rent couture garments for special occasions. In brick and mortar, retailers such as Crossroads Trading Co., Fillmore & 5th and Patagonia buy back and sell used clothing, emphasizing sustainability.
