December 4, 2024

Japanese Companies that Sell Second-hand Goods are Expanding Internationally

Geo Holdings expanded to the U.S. in 2018 and now operates 43 2nd STREET stores, primarily in California. Driven by the U.S. and other markets, overseas sales doubled to 14 billion yen for the fiscal year ending March 2024. The company plans to grow to 100 stores by 2028.

Director Koji Kubo, overseeing overseas operations, stated, "We will expand from Texas to untouched areas like the Central Region. The company's highly accurate pricing system and the skilled workforce developed through its domestic operations are considered its key strengths. In the United States, second-hand goods dealers typically set the purchase price at around 30% of a new item's cost, and they avoid buying used goods that are unsellable. 2nd STREET leverages over 10 years of price data from about 850 stores nationwide. They acquire popular items at premium prices and even accept goods that local companies refuse to buy.

Geo Holdings primarily focuses on renting DVDs and other items. In 2010, the company purchased the management of 2nd STREET, a chain of recycling stores, as a subsidiary. Since then, it has redirected its emphasis toward buying and selling second-hand clothing and additional products. Bookoff Group Holdings aims to expand its U.S. store count from 16 at the end of November to 100 by May 2033. The focus will be on entertainment products, particularly books and CDs. The recently opened Massapequa store in New York features over 100,000 items, including books and DVDs. Additionally, entertainment products imported from Japan will be a significant draw for customers.

The Advantages of Physical Inspection

In the reuse sector, e-commerce companies like Mercari are increasing their influence, resulting in a competitive environment. Companies such as Geo Holdings operate both physical stores and online platforms. Shopping in a physical store allows consumers to see the actual product, providing reassurance during their purchasing decision. Research from Global Information indicates that the global secondhand market is anticipated to grow nearly four times, reaching around $686.9 billion (about 103 trillion yen) by 2032. The European Union (EU) is developing legislation to support a circular economy, leading to gradual improvements in the environment that encourage the reuse and recycling of goods, particularly clothing.