Introduction
The second-hand market has grown dramatically worldwide in recent years. This expansion results from shifting consumer beliefs and behaviors, not merely a passing trend. The appeal of antique goods has helped the second-hand industry reach unprecedented heights, along with the growing emphasis on sustainability and environmental awareness. Platforms that give customers a wide range of options for used items include Red Cross shops, Trendsales, Facebook Marketplace, and DBA. This trend toward sustainable consumerism benefits the environment while being economically astute, enabling people to acquire high-quality goods for a small portion of their original cost.
The existence of Loppesupermarkedet Kirppu in the middle of this expanding market proves the viability and potential of the used goods sector. Kirppu, modeled after the “Kirpputori” flea market concept from Finland, has established itself as a niche player in the Danish market. Kirppu is more than simply a store; it has a staggering yearly revenue of over 190 million DKK and a rising presence nationwide (Kirppu Danmark, 2023). Their app’s simplicity and innovative business concept, in which people can rent kiosks to sell their goods, have completely changed how consumers view and interact with second-hand shopping.
Description of Kirppu
Loppesupermarkedet Kirppu, commonly known as Kirppu, is a distinctive entity in the second-hand market, drawing its roots from a rich historical background. The notion of the “Kirpputori” flea market in Finland served as the inspiration for Kirppu. Its operating paradigm and name, “Kirppu,” which honors its Finnish forebear, are clear examples of this Finnish influence. It was a novel approach to the old flea market notion to designate a location where people might congregate and manage the sale of their used goods.
Morten Bjland and Claus Andreassen are the creative minds behind Kirppu. Kirppu was founded due to its entrepreneurial energy and acute understanding of the possibilities of the second-hand market. Since its founding, Kirppu has experienced exponential growth, with its first location opening in Hilliard in 2014 (Iver, 2021 ). Today, it has an astonishing 24 outlets nationwide, attests to its success and ubiquity. Their combined efforts have turned a straightforward concept into a flourishing company that connects with thousands of Danes.
Kirppu’s business strategy is both unique and customer-focused. Kirppu relies mainly on a stall-renting system to function. In Kirppu’s flea supermarket, people may hire a booth to sell their goods. Depending on the supermarket’s location and the length of the rental, the cost of this rental varies, with a typical week-long stall rent being 200 DKK (KirppuDanmark, 2023). However, Kirppu’s inventiveness goes further than that. Each stall’s sales are subject to a 19 percent commission fee from Kirppu in addition to the rental price(Kirppu Danmark, 2023).
This dual income stream ensures the company’s viability, giving stall renters a platform to reach a larger audience. Kirppu provides an app that enables merchants to design price tags and track transactions in real-time, thus enhancing the selling experience. One of the stall renters encapsulated the Kirppu experience by stating, “I find it easy to sell my stuff through Kirppu. It only requires me to make price tags and set up – and the staff takes care of the rest. I do not have to deal with questions, unserious inquiries, and haggling over the price” (Frimodt, 2021). This opinion is shared by many people who have found Kirppu to be a simple and effective way to sell their used goods.
Analysis of Kirppu’s Target Group(s)
Kirppu’s success in the second-hand market is due to its creative business strategy and capacity to serve a wide range of clientele. Since its start, Kirppu has drawn a diverse clientele, ranging from frequent thrift store visitors to people hunting for one-of-a-kind items. Its broad appeal is one of the pillars of Kirppu’s growth and popularity. However, current patterns indicate a significant change in Kirppu’s consumer base.
While the business still draws in various customers, there has been a noticeable rise in interest from younger demographics, notably high school and school kids (Münzel et al., 2019). This younger generation, which may have formerly been more prone to quick fashion and brand-new purchases, is now swarming to Kirppu in quest of used gadgets, furniture, hobby supplies, and apparel.
This shift in clientele kinds is the result of many circumstances. Firstly, it is essential to recognize the attractiveness of reasonable pricing points. The opportunity to purchase high-quality products at a fraction of their original cost is very attractive, especially considering the rising cost of living and the financial struggles that many young people face. Secondly, young people’s increasing environmental concern is essential. The environmentally friendly aspects of secondhand shopping align with the ideals of a generation growing more concerned with the environment’s health. Finally, social media has had a significant impact.
Mette Thomsen, the store manager in Kirppu Roskilde, provides valuable insight into this demographic shift. She observes, “I especially notice that many more high school and school students visit Kirppu to shop… All our younger employees’ friends, who did not visit us as much just a year ago, now often come by. They tend to spend hours here”(Sjællandske Medier, 2023). Mette also draws attention to the rise of young stall renters, illustrating the cascading effect that occurs when the addition of fresh merchandise from young vendors makes Kirppu even more alluring to young consumers.
Analysis of Purchasing Behavior
The appeal of used goods is not only in their cost but also in their distinctive nature. Vintage and unique things allow customers to buy something special, differentiating them from the mass-produced options in traditional retail. This quest for uniqueness and the allure of antique aesthetics has strongly affected consumer purchasing patterns, driving more people to flea markets like Kirppu. The changing perspective of used goods throughout the holiday season is another fascinating shift in consumer behavior. New products have often been the preferred choice for gifting.
However, there has been an apparent movement in favor of giving used goods as Christmas gifts. This modification highlights a more significant social trend in which festivities increasingly incorporate sustainability and recycling. Tina Donnerborg, Head of Recycling at the Danish Red Cross, captures this sentiment, noting, “Our Christmas sales this year have been bigger than usual… people are more open to buying recycled Christmas gifts” (Bang andNørgaard, 2023). Vintage and unique products, once seen as mere second-hand goods, are now cherished as thoughtful and environmentally conscious gifts.
Discussion on Kirppu’s Market Development and Challenges
Kirppu’s journey in the second-hand market has been marked by strategic expansion and innovation. Its growth into new cities, particularly in Jutland, has been a crucial feature of its market success. This regional expansion demonstrates Kirppu’s ambition and capacity to recognize and seize market opportunities, ensuring its presence is felt throughout the nation. Kirppu’s acceptance of the Blue Ocean Strategy is crucial to its success.
Instead of squaring off against rivals in a crowded market, Kirppu established a distinctive niche for itself. Kirppudistinguishes itself from conventional second-hand platforms by allowing people to rent booths in a flea supermarket environment and by providing the ease of an app for pricing and sales tracking (Nguyen and Le, 2020). Since there is little competition in the market, Kirppu has been able to operate there and maintain its superior products.
Kirppu does, however, encounter several difficulties, as with any expanding business. The level of competition is high due to the emergence of platforms like Red Cross shops, Trendsales, Facebook Marketplace, and DBA. These platforms compete for the attention of the same target audience by each offering a unique selling proposition.
The probable deterioration in the quality of donated goods is a further impending problem. The quality of the products sold might decline as the second-hand market expands, negatively impacting customer experience (Xu et al., 2021). The popularity of Kirppu has also raised the demand for stall rentals. Longer waiting times for potential stall renters due to the uptick in demand may discourage people from using Kirppu as their preferred selling platform.
Solutions for Identified Challenges
Kirppu must constantly innovate to keep ahead of its rivals in the dynamic second-hand market. Diversification is one strategy for achieving this. While stall rents are the mainstay of Kirppu’s business, developing other revenue sources, including online sales or partnering with sustainable companies, might give an edge. Additionally, increasing client involvement can help Kirppu establish its place in the industry.
Events, workshops, or special sales days may enhance the shopping experience and promote Kirppu as a place for eco-friendly buying and involvement in the community (Ashfaq et al., 2022). In the second-hand market, quality control is crucial. To ensure that the items sold meet a certain standard, Kirppu could implement basic quality checks. This not only elevates the shopping experience but also builds trust among buyers.
The increasing demand for stall rents at Kirppu presents both an opportunity and a difficulty. Introducing a dynamic pricing mechanism can help address the longer wait times. Kirppu can balance the flood of merchants by adjusting stall rental prices in response to demand. The rental procedure may be streamlined to become more effective and user-friendly by adding a waitlist or changing the present booking system to support advanced reservations.
Technology may affect the game in the modern digital era. The current Kirppu app has many features, but there is always potential for improvement. The user experience may be improved by adding functions like virtual stall tours, online bookings, or a loyalty program (Fan et al., 2022). Utilizing the power of data analytics may also yield priceless insights. Kirppu may adjust its marketing strategy to resonate with its target demographic by researching client preferences, peak selling periods, and popular goods.
Conclusion
In the expanding second-hand market, Kirppu stands out as an example of how innovation and sustainability may come together to form a successful business strategy. Its distinctive method for enabling the selling of used goods has not only helped it carve out a place for itself but also changed how consumers see buying used goods. Prospects seem optimistic as the market keeps expanding. According to predictions from websites like Trendsales and ThredUp, the online second-hand industry will grow significantly over the next several years. Kirppu is well-positioned to ride this wave of development and further strengthen its place in the sector thanks to its established presence and forward-thinking business practices.
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