Second-hand is first choice as economy squeezes family finances

The struggle is real.

Charlton Thysse expressed this candid opinion as he emerged from a second-hand goods store with cash after selling a pair of binoculars.

The 31-year-old Capetonian and his wife are both employed but need extra money for living expenses. “All these things you need to buy cost a lot of money. The struggle is real,” he said.

There's a booming trade in second-hand goods sweeping the nation, accelerated by the cost-of-living crisis and bargain hunting by price-savvy consumers. On the flipside, outdated items are sold to fund “upgrades”, such as newer gaming consoles.

Laptops, cellphones and televisions are popular but anything goes on the mushrooming suburban “for sale” WhatsApp groups: a dirty litter tray marketed as a “cat poo thing” for R50; clothes; shoes; books; bedding; sports gear; even sex toys. How about a life-size fibreglass giraffe marked down to R12,000 in Gauteng?

Charlotte Williams of Randburg created a WhatsApp group in 2019 for friends to buy and sell unwanted goods. “You spend so much on clothes, shoes and toys for your children, only to have them grow out of them while they are still in brilliant condition,” she said.

Now she administrates four used-goods groups — three at capacity with 1,024 members, a fourth approaching 800 — and a large Telegram group.

“People love it because you can get better prices than going to [second-hand stores], and because you transact directly with people on their phones there's less risk of being scammed as happens on something like Facebook Marketplace.”

Danny Hunter, 19, from Grabouw, took his X-Box 360 games to Cash Converters in Cape Town with an upgrade in mind. He is saving for a newer X-Box 1.

Cash Converters CEO Richard Mukheibir said growth in the second-hand market has been exponential: “We have opened three new stores in the last quarter of this year, and we aim to open 10 new stores in 2024.” The brand launched in South Africa in 1994 with one store in Parow. It will close 2023 with 90 stores.

“From a moneylending perspective, we are able to provide our customers 'access to cash, now' in a professional environment, compliant with the law. With the economic pressure consumers are under, being able to access a safe, secure, convenient loan to bridge the gap between the need today and the next payday is a most viable alternative to the traditional moneylending options available to consumers,” he said.

Consumers can sell their goods for cash or get a loan in exchange for them.

“Both our retail sales and our secured moneylending numbers have increased steadily year on year from 2020. The growth did not decline — rather it has continued as interest rates and inflation have increased. Consumers still desire luxury household items and fine jewellery but are wise to the fact that a pre-loved second-hand item comes with all the utility and a lower cost. In the same vein, our moneylending has increased in double-digit growth year-on-year since 2020 as consumers adjust to higher costs with salaries and incomes not necessarily staying level with this.”

Futurist, economist and trend analyst Bronwyn Williams, a partner at strategic foresight and trends analysis consultancy Flux Trends, said the used-goods market is growing fast.

“We've seen Facebook Marketplace booming internationally, but locally the WhatsApp community groups are the underground platforms where affluent people in premium suburbs are prowling,” she said. “It's your middle-middle people, the families that have traded down from Woolworths to Checkers that are having to scrimp and save and have taken to selling off stuff.

“These people don't want to go and stand in a queue ... where they can be spotted flogging the lawnmower,” she said, outlining the appeal of anonymity on WhatsApp. “It's those people we don't talk about, who sit hidden behind CPI numbers that look a lot better than the lived reality. It's where people start to buy groceries on credit and are one step away from pawning possessions.”

Cassey Chambers, operations director at the South African Depression and Anxiety Group (Sadag), said that in the about 2,500-3,000 calls their help line gets daily, it's become clear that people are battling with financial and work-related stress. 

Typical calls would be: “I'm worried about keeping my job ... I've lost my job ... my husband can't find work ... I'm worried about putting food on the table ... or paying bills ... or paying my bond next month.” 

Clinical psychologist Joanna Kleovoulou said her practice has seen an increase in mental health concerns post-Covid, with more people fearful about the future of the country and high cost of living.

Hairdresser Gina Govender, a WhatsApp thrifting enthusiast, said: “The worst one I saw was a woman selling her jewellery because her father needed mental health medication and his medical aid hadn’t yet put it on to chronic. That was desperate.”