In the Untact Era, ‘Used Goods Trading’ Booms Amid Recession

Rapid Growth of Secondhand Trading App Market Due to COVID-19

The secondhand trading market is rapidly growing due to the spread of untact culture caused by COVID-19 and the economic recession. Photo by Danggeun Market

[Asia Economy Reporter Kim Heeyoon] Amid the rise of untact culture due to the impact of the novel coronavirus infection (COVID-19), the non-face-to-face secondhand trading market is growing.

According to related industries on the 7th, secondhand trading has surged due to changes in consumer culture caused by COVID-19.

According to the mobile data analysis platform ‘Mobile Index,’ a survey of domestic Android smartphone users showed that the monthly active users (MAU) of secondhand trading apps reached about 4.925 million in March, a 65.7% sharp increase compared to the same month last year (about 2.98 million).

The secondhand trading app ‘Danggeun Market,’ which promotes neighborhood transactions, is regarded as the leading force driving market growth. In April, Danggeun Market’s daily active users (DAU) reached about 1.56 million, ranking second among domestic shopping apps after Coupang (3.97 million), surpassing 11st (1.37 million) and Wemakeprice (1.09 million). A Danggeun Market official stated, “We are working on developing artificial intelligence to prevent fraud and provide customized product recommendations during secondhand transactions,” adding, “More than half of our employees are developers, so we are focusing on advancing the IT environment to offer more convenient services.”

Bungaejangter announced on the 2nd that it recorded its highest-ever transaction amount in the first quarter of this year. Bungaejangter’s transaction amount in Q1 was 369 billion KRW, a 43% increase compared to the same period last year. Notably, the proportion of users in their teens and twenties (Gen Z) is significantly high. While Danggeun Market has 17.8% and Joongonara 26.7%, Bungaejangter has 37.8%, gaining strong support from the 10-20 age group. A Bungaejangter official explained, “Since the transaction share is concentrated on lifestyle product categories such as fashion and hobbies, we will focus on marketing to the MZ generation.”

Parabara, with its transparent box concept, is gaining attention for implementing untact secondhand trading through its ‘Transparent Box.’ Users place the items they want to sell into a transparent box at a designated location, enter the price and phone number, and then lock it. Afterward, buyers make payments through the app, and when they retrieve the box, it opens, allowing them to take the item. A Parabara official said, “We are striving to develop a secondhand trading platform suitable for the untact era,” adding, “The secondhand trading market will continue to grow in the future.”

This content was produced with the assistance of AI translation services.