Survey reveals Japan’s Gen Z and Millennials are embracing second-hands

A recent survey revealed that nearly half of Generation Z and Millennial consumers in Japan purchased second-hand or refurbished goods within the past year.

The Consumer Survey on the Realisation of a Sustainable Society revealed that circular consumption is becoming a standard choice for younger demographics. This iasconcurring survey that tracks the evolving environmental awareness of Japanese consumers aged 15 to 69, beginning since 2021.

The data shows that 52 per cent of Gen Z and 47 per cent of Millennials bought second-hand or refurbished items in the last 12 months. Refurbished products are used items returned to near-new quality through manufacturer inspection and repair, and have gained traction. Approximately 30 per cent of Gen Z and 26 per cent of Millennials now consider these options from the very start of their shopping process. High demand is evident in specific categories such as luxury fashion, baby and children’s products, and digital cameras.

A shift in purchasing logic is also emerging among younger shoppers. The survey found that 31 per cent of Gen Z and 25 per cent of Millennials make buying decisions based on the net cost of a product, involving subtraction of expected future resale price from the initial purchase price. This trend suggests intention to resell items at a later date, and is becoming a foundational element of consumer behaviour in Japan. The survey hints the potential in extending the life cycle of products through a pre-planned circular route.

The research also explored consumer willingness to pay premiums for environmentally friendly products. Looking at coffee, 35 per cent of respondents were initially willing to pay a premium of 10 per cent or more for CO2-reduced coffee. However, the figure rose to 41 per cent after participants received an explanation regarding the link between climate change and rising coffee bean prices. The survey suggests that clearly communicate the relationship between environmental action and economic stability can get consumers to more likely accept the higher costs associated with sustainability.

Boston Consulting Group, which conducted the survey, stated that the survey results provide numerical evidence that second-hand and refurbished goods are now standard alternatives to new products for younger generations. Consumers are more receptive to price increases when the environmental value is explained effectively. They concluded that businesses must now focus on designing circular purchasing experiences and developing communication strategies that clearly convey the value of environmental conservation to the public.