Practical Spending Pursued Amid High Inflation
Trend of Increasing Large Refurbished Stores
Recently, due to high inflation and an economic downturn, more MZ generation (Millennials + Generation Z) consumers are seeking refurbished products. While small stores were predominant in the past, large refurbished stores handling a variety of products are now on the rise.
On the morning of the 9th, customers are browsing products at a refurbished store in Paju, Gyeonggi Province. [Photo by Seohee Lee]
On the afternoon of the 10th, Oh Young-mi (34), whom we met at a refurbished store in a complex shopping mall in Paju, Gyeonggi Province, said, "Since our newlywed home is a lease and prices are high these days, my husband and I agreed to buy a sofa at an affordable price." She added, "I found this place by searching online, and at first glance, I couldn't tell there was any defect in the products. Since I was here, I am also looking around for plates and diffusers." Refurbished products refer to items that have defects such as clearance items, store display products, or products with scratches from the manufacturing process but have no issues in actual use. The term comes from the shortened form of 'refurbish,' meaning 'to renovate.'
In fact, consumer communities, mainly among young people, actively share information about refurbished store discount events and product purchase reviews. Im (27), who regularly uses refurbished products, said, "I visit refurbished stores because I can buy products that look no different from new ones at half the price." He added, "However, the variety of products is limited, and obviously good items sell out quickly, so you have to put in some effort."
Sales at refurbished stores operated by Lotte Mart (Allland & Allso, Greenie, Doowon, Zoomarket) from January to September this year increased by about 20% compared to last year. The Lotte Mart refurbished store, which first opened in May 2022, saw its sales increase by 500% in 2023 compared to the previous year, followed by nearly a 20% rise this year as well.Although the total number of stores slightly decreased this year to 17 from 24 in 2023 and 8 in 2022, overall sales rose due to an increase in large stores.
Experts analyze that refurbished products are gaining popularity among young consumers who tend to value practical utility. Professor Heo Kyung-ok of the Department of Consumer Studies at Sungshin Women's University explained, "Compared to middle-aged and older generations, young people tend to pursue practical and utilitarian values in their consumption. While preferences may vary for accessories where appearance is important, many purchase refurbished products like laptops or cameras where functionality is key, even if there are minor scratches on the exterior."
Professor Lee Eun-hee of the Department of Consumer Studies at Inha University said, "Due to high inflation and economic recession, young people with relatively tight budgets are more likely to seek cost-effective products. The active sharing of information about refurbished products in internet communities mainly operated by young people has also contributed to this trend."
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