Changing Values in Canada's Economy
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Changing values in Canada’s economy The 5th Annual Kijiji Second-Hand Economy Index 2019 The Kijiji Second-Hand Economy Index | 1 Defining the Second-Hand Economy Second-hand practices or “reuse” is a relatively • that have had one or more prior owner(s); broad concept that involves extending the lifespan • with ownership transfer and use, or transfer of products by providing them to other individuals of use only (rental); for reuse. This can take on a number of diffe- rent forms: donations, second-hand purchases, • for which the exchange has been decided exchanges, free sharing, paid sharing, rentals or before or after its initial acquisition using lending. different currencies (swap) or total lack there of (donation); and Second-hand practices can be broadly defined as • initiated by the consumer, but often facilitated the acquisition or intentional disposal of durable by various intermediaries. or semi-durable goods: • that are either used or new; NOTE: The housing market is not included in this survey of the second-hand economy. • for which the original state and function has been preserved; ©2019, Kijiji Canada Ltd. Contents of this report may be reproduced provided appropriate credit is given to the source. This report may be cited as: Durif F et al, Changing values in Canada’s economy – The 5th Annual Kijiji Second-Hand Economy Index 2019, Published by Kijiji Canada Ltd., October 2019. Learn more at: secondhandeconomy.kijiji.ca 2 | Five years of following our changing values Matthew McKenzie General Manager, Kijiji Canada Five years ago, in 2014, Kijiji set out to quantify and a notable shift in the attitudes of Canadians something that hadn’t been measured definitively over the course of five years. The traditional tem- before – the second-hand economy in Cana- plate of single-person ownership of goods and da. We believed it was time Canadians learned their subsequent disposal and replacement are more about this important part of our economic being replaced by a willingness – and enthusiasm activity. Thanks to the expert work of Fabien – to ensure that goods that are no longer needed Durif and his team at the Université du Québec are not simply discarded, but passed on to new à Montréal’s School of Management Sciences, users. we got our first look at the scale and significance of Canada’s second-hand economy. It was very Five years of studying the second-hand economy revealing and, quite rightly, attracted a lot of surfaces an appetite for a completely different interest. way of looking at markets, producers and consu- mers, and their respective roles. These new roles What we saw year over year was big. Millions and attitudes are fueled by dramatically changing of Canadians participated in the second-hand outlooks on the need to preserve our resources economy. The economic impact of the exchange and use them well, and the availability of techno- of second-hand items between individuals logy that makes new ways to use things possible. and businesses was on par with provincial GDP figures. On a micro economic level, we saw Cana- Kijiji is a vital platform in enabling the success of dians saving and earning hundreds of dollars a Canadian individuals and businesses in whatever year. As the average number of items exchanged they do – in the second-hand economy and per person grew, so did the financial benefit. It beyond. We are very proud to present this fifth was clear that Canadians were reaping the bene- annual report and, as the dominant commercial fits of community-minded commerce. channel in that economy, to play an important role in its growth and promotion in Canada. This year, we are proud to present the fifth annual Kijiji Second-Hand Economy Index. The 2019 report reflects a steady rise in activity each year The Kijiji Second-Hand Economy Index | 3 5 key facts from 5 years of the Kijiji Second-Hand Economy Index Bigger every year Motivations shifting Canada’s second-hand economy has seen a steady rise Financial motivations are still the top reason people use the in activity as the Intensity Index - the average number second-hand market, but a notable change observed is the of second-hand items acquired or disposed by every growth of both altruistic and ecological motivations. Canadian in a year - kept growing each year. Economic Altruistic Ecological 82 75 -4% +6% +3% +6% ACQUISITION DISPOSAL 2015 2018 Financial benefits Acquisition Index Disposal Index $723 $961 35 40 41 42 Average SAVINGS Average EARNINGS by Canadians per year by Canadians per from purchasing year from selling 2015 2018 2015 2018 second-hand goods second-hand goods instead of new Clothing is the Meeting market Kijiji is #1 top category demand In all five years, Kijiji has been by far Majority of second-hand The top 10% of users of the the dominant commercial channel transactions involved clothing, second-hand economy – for the second-hand economy. shoes and accessories, those transacting the most comprising 30% of all items. goods – are developing the commercial market for second-hand goods. # 1 500Top users’ Intensity Index - of all commercial six times more than the transactions over national average. 14% the past five years 4 | 5 key facts in 2018 for Canada’s second-hand economy Participation rate still high Giving more items a second life 2.4 82% billion Canadians who took part in the Number of items that were granted a second life in second-hand economy in 2018 Canada in 2018 - 250 million more items than in 2014 Value of the second-hand economy Western provinces are champions of the second-hand economy Total value of all second-hand 84% Participation rate transactions in 93 Intensity Index 27.3 Canada in 2018 billion BC AB Second-hand economy fuels the overall Canadian economy Share of Canada’s gross domestic product 86% Participation rate (GDP) coming from 99 Intensity Index 1.23 the second-hand economy The Kijiji Second-Hand Economy Index | 5 Why? While financial motivations continue to lead, altruistic and ecological motivations on the rise in the second-hand economy 72 69 67 ECONOMIC ALTRUISTIC ECOLOGICAL Why do Canadians take part in the second-hand • There is less negotiation on price for economy? The one-word answer: money. Finan- second-hand goods, with three out of four cial motivations are the leading cause for Cana- saying they had paid the seller’s asking price. dians to either acquire second-hand items or to • Second-hand practices are not limited dispose of them. to people with the lowest incomes; 35% of users have annual incomes of $80,000 However, there has been growth in altruistic and or more. ecological motivations for participating in the second-hand economy, motivations which, in • A strong conventional economy is co-related many cases aided by new technology, contribute with more second-hand economic activity. to the growth of the sharing economy. Ranking different motivations on a score out of 100, the score for altruistic motivations when disposing of ALTRUISTIC MOTIVATIONS items in the second-hand economy rose from 65 for using the second-hand economy to 69 between 2014 and 2017 while the ecological include: motivation for acquiring second-hand goods • Helping my fellow citizens rose from 65 to 67 as the score for economic motivation fell from 75 to 72. • Doing something good for my community • Doing something good for society The Second-Hand Economy Index survey has as a whole consistently shown that users of the second-hand economy share four key values: Compassion, ECOLOGICAL MOTIVATIONS Empathy, Autonomy and Tradition. for using the second-hand economy include the opportunity to: No longer a stigma • Protect the environment by extending Society’s views about second-hand goods have product lifespans changed and continue to evolve. In the past, • Help preserve the planet new items were considered the standard, with • Refrain from contributing to global warming second-hand carrying a certain stigma. The by limiting emissions associated with the survey has several indicators of this change: production of new items • In five years, the number of people who said • Avoid waste they have given a second-hand good as a gift • Limit resource exploitation has doubled, to more than half. 6 | High impact of the second- hand economy in 2018 A large economic impact Of the average of 82 items in 2018: Total number of second-hand items that • 40 were acquisitions changed hands in 2018: 2.4 billion (250 million • 42 were disposals more than in 2014) This is the closest the acquisition and disposal • Total value of all transactions: $27.3 billion indices have been, a difference of just 5%. In 2014, • Impact on Canada’s GDP: 1.23% the average was 35 acquisitions and 41 disposals, a difference of 17%. • Jobs sustained by the second-hand economy: Nearly 300,000 The Intensity Index average is increased by Canadians who conduct many transactions Intensity Index continues to rise in the second-hand economy: The second-hand economy Intensity Index is • In 2018, 10% of Canadians (the high-volume the average number of items each Canadian has users of the second-hand economy), acquired acquired or disposed of in the second-hand or disposed of an average of 514 items each. economy during the year. It has risen steadily • Half of Canadians acquired or disposed of each year: 20 or fewer items while half were over this number (the median index). 82 • One in five Canadians (20%) acquired or 80 disposed of more than 100 items per year. 78 2018 77 2017 76 2016 Donations, the leading practice 2015 Canadians focus on three main second-hand 2014 practices: DONATION Figure 1.