The used electric appliance market in Japan is undergoing a boom as price-conscious consumers become less fussy about purchasing recycled products, giving weight to the saying that ‘One man’s trash is another man’s treasure.’

A 60-percent increase in such sales over the past five years is due in great measure to a worldwide semiconductor shortage that in turn triggered product shortages.

As prices of new products are rising ever more sharply, consumers in Japan are becoming more budget-minded.

As a result, secondhand shop operators are now beefing up their marketing efforts for the autumn-winter sales season.

A leading electric appliances retailer has also thrown its hat in the ring to make the market more competitive.

NEARLY HALF THE PRICE

Treasure Factory Co., which operates at least 150 secondhand stores mainly in the Kanto and Kansai regions, has been going all-out to buy electric heaters, fan heaters and other winter home appliances.

“We hope those who bought used home appliances during the summer will be interested in winter appliances as well,” said Toshikazu Ozawa, an area manager for the company.

Air conditioners were the hot ticket item this summer.

In June, Treasure Factory sold 90 percent more units year on year, and almost went out of stock at one point.

The buying frenzy gradually subsided. But in August, the company saw sales of washing machines grow by about 20 percent from a year earlier.

Overall, sales of used home appliances increased by 12 percent year-on-year between January and August.

Some secondhand electric appliances sell at nearly half the prices of new ones.

“Prices for new products are expected to continue to climb,” Ozawa said. “With consumers becoming increasingly budget-minded, the number of people who buy used items is bound to increase further.”

According to an estimate released by industry magazine The Reuse Business Journal in September, the overall secondhand market was worth about 2.7 trillion yen ($18.3 billion) in 2021, with a year-on-year increase of 11.7 percent.

Of the total figure, the market for home appliances and furniture was worth 251.8 billion yen, a year-on-year increase of 6.2 percent.

The market continues to expand each year, and it has grown by more than 60 percent from five years ago.

Many customers for used home appliances and furniture shy away from marketplace apps and buy them from brick-and-mortar secondhand vendors because large-sized furniture and household appliances require packaging and other delivery tasks.

RECYCLING FACTORIES

A leading home electric appliance retailer also made a foray into the secondhand market.

Yamada Holdings Co. set up a recycling factory for used home appliances in Fujioka, Gunma Prefecture, that started full operations in June.

The company buys used appliances from its customers when they purchase new ones or for other reasons. The used items are repaired, checked and cleaned before they are shipped.

For instance, a refrigerator is evaluated on the basis of 24 categories, including whether it can ensure appropriate temperatures, according to the company.

Standing on a 15,000-square-meter plot, the recycling factory is one of the largest in Japan.

With televisions and air conditioners processed at an adjacent factory, the new factory specializes in washing machines and refrigerators.

It receives orders from about 90 outlet stores around the country and ships recycled products as quickly as within three days.

According to Koichi Kiyomura, head of the Corporate Planning Office at Yamada Holdings, secondhand home appliances are flying off the shelves.

Sales surged by three to four times year-on-year in about three months from June.

While a majority of its customers are students and those working away from home, the company also receives numerous orders from businesses engaged in long-term construction projects.

Kiyomura noted that consumers became less negative about reused products after the company started offering a two-year warranty program covering mechanical breakdowns and other perks.

Yamada Holdings has set a goal of recycling 300,000 units of home appliances in the business year ending in March 2026, while it also plans to build new factories in the Tohoku and Chugoku regions.

(This article was written by Hideaki Sato and Shinpei Doi.)