The latest always-excellent Trendwatching trend briefing is on (re)Commerce; the trend of inviting consumers to “trade-in to trade-up” – allowing them to unlock the value in past purchases. Think brand-buybacks, exchange-schemes and ethical disposal. Think the application of re-sale markets (consumer durables, houses, cars) to consumer brands. Here’s the speed summary:
Trendwatching cite three drivers behind the ‘trade-in-to-trade-up’ (re)Commerce trend, and position (re)Commerce as part of the ‘Expectation Economy’ – where customers demand the best, and demand to be delighted by the best.
- Consumers forever crave the new and exciting experiences promised by the ‘next’
- The growing status boost that comes from being savvy and shopping (environmentally) responsibly.
- Cash-strapped consumers embracing creative solutions
Psychologically, (re)Commerce works because it removes the friction of “loss aversion” and “the endowment effect” which can prevent consumers from trading up.
Examples of (re)Commerce include
- Brand Buy-Back
- Hyundai guaranteed buy-back value for new cars
- BestBuy (also Target, Walmart, RadioShack, Bestbuy, EBGames, AT&T, Verizon, T-Mobile, Vodafone)
- HP (Brazil) – 200 BRL discount for trading-in used printer
- Decathalon – annual Trocathlon campaign from sports retailer, stores buy back in return for store coupons
- Mango – Members of loyalty program can bring back clothes purchased in last 12 months for 20% discount on new clothes
- Levi’s (Singapore) – Trade in old jeans for SGD 100 discount
- Callaway, “Trade In! Trade UP” program for golf gear
- Responsible Recycling
- Apple offers store credits for Apple gear brought in or sent for recycling – including $200 for an iPhone
- Discounts for Donations
- EBGames – AUD .50 discount for every toy car traded in for new Gran Turismo 5 – toys donated to local charity
- Marks and Spencer – partnership with Oxfam (Sep 2011) – GBP 5 M&S voucher for every donation of used M&S to Oxfam charity
- Gap (US/CA) – Donations to Goodwill charity for 30% store discount vouchers (May 2011)
- Adidas (Phillipines) RefreshYourGear campaign (2010) – get PHP off a new pair of sneakers, old pair donated to HOPE worldwide
- Murcia (Spanish City) trade in car for free lifetime tram pass
- P2P Marketplaces
- ASOS Marketplace, where ASOS customers model and sell their ASOS gear
- InstantLuxe, like eBay for luxury only better, sellers send products to moderators who appraise and authenticate, buyers buy with trust
- Patagonia – brand curated marketplace on eBay for used Patagonia gear
- IKEA – brand curated second-hand IKEA furniture marketplace
- DealsGoRound – marketplace to buy and sell unused Group-Buy deals (see also Lifesta, CoupRecoup, Dealigee and SellMyDeal, while DealSupermart and Kuponomi)
- AmazonStudent – brand-curated mobile marketplace, scan, send, get an Amazon voucher
- StubHub – mobile secondary ticket marketplace – but e-tickets at the event, no printer needed
One of the best books about this subject is from Daniel Nissanoff.
FutureShop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell, and Get theThings We Really Want
It is published in 2007 but still very up to date.
I highly recommend it!
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