Summary

Gen Z is reshaping the consumption system and changing how products are bought, used, and resold. Ownership is losing importance, while resale value, flexibility, and post-purchase services are becoming central decision criteria. Resale, buy-back, and circular models are shifting revenue, customer access, and data flows increasingly into the secondary market. The impact affects entire business models and reveals where brands lose value after the first sale. Those who act early can not only unlock new revenue streams but also position themselves in a market where control over the product lifecycle becomes a real competitive advantage.
Person sitting on a sofa using a smartphone and holding sunglasses, surrounded by clothing

Gen Z between first purchase and renewed use

For Generation Z, consumption no longer begins with the question of new or used. Secondhand is not a special case or a conscious deviation from “normal” purchasing behavior, but part of the system from the very beginning. This generation has grown up in a consumer environment in which offers, prices, and availability are comparable at any time. Purchase decisions are made against the backdrop of constant comparability: prices, conditions, and demand can be checked at any moment, as well as the option to resell a product later.

Against this backdrop, secondhand and resale models are growing significantly faster than traditional retail channels. For more than 53% of Gen Z, the circular economy is already a lived practice: they buy used, resell products, or actively exchange them. Secondhand is not an emergency solution or a conscious compromise, but an equivalent purchasing channel that combines price advantages, flexibility, and access to high-quality products. This development is further accelerated by digital resale models. Transparent pricing information and data-driven valuation logics make it possible to quickly assess a product’s market value and plan resale. Gen Z uses these technologies deliberately to de-risk purchase decisions and factor in future resale from the outset.

Who exactly is Gen Z?

Gen Z broadly includes those born between 1997 and 2012 and is the first fully digital consumer generation. Purchase decisions take place in digital environments, shaped by constant comparability, immediate access to information, and the expectation that products, prices, and resale options can be checked at any time.

In contrast to Millennials, ownership is not central for Gen Z. While Millennials often associated consumption with long-term ownership, stability, and identity-building, Gen Z thinks more in terms of financial flexibility, usage options, and clear paths for passing products on.

Which factors shape purchase decisions for Gen Z

Gen Z does not make purchase decisions impulsively, but along clear, utility-driven criteria.

Price is seen as a central factor. Brand loyalty only emerges when a clear added value is evident. Gen Z compares systematically across channels and evaluates brands based on utility rather than image. Models such as resale or buy-back act as concrete loyalty mechanisms because they combine economic benefits with flexibility.

Sustainability plays a role, but not as an end in itself. Circular offerings only convince Gen Z when they are functional and economically viable. Abstract sustainability messages without tangible benefits remain ineffective, while concrete advantages such as cost savings or longer usability are perceived positively.

What is also decisive: for Gen Z, the purchase does not end at the checkout. Services are expected across the entire product lifecycle, from take-back and repair to remarketing. Consumption thus becomes a continuous customer journey rather than an isolated transaction. As a result, consumption shifts from a status decision to a flexibility decision, in which the initial purchase is only one part of a longer cycle.

Resale grows where Gen Z shops

Gen Z is among the most active user groups in resale and uses resale not just as a supplement, but strategically; around 40% use resale deliberately as an additional source of income, for example through the regular resale of lightly used products or by purchasing with the intent to resell.

Digital usage is the standard. Technology-driven marketplaces enable real-time price comparisons, automated valuations, and easy remarketing. This combination of digital infrastructure and active user behavior significantly accelerates market growth. Resale is thus evolving from a side market into a scalable, data-driven business model.

This logic feeds directly back into the primary sale. When the resale value is known and the exit is factored in, the purchase feels less risky. Resale therefore lowers the barrier to entry and increases purchase willingness, especially for higher-priced products.

Person photographing a blouse with a smartphone for resale

What this means for brands & retailers

Value loss is not a natural law, but the result of missing control. Write-downs on returns, B-stock, and excess inventory are still considered unavoidable in many organizations. Yet current analyses show that resale can monetize exactly these inventories. Gen Z explicitly accepts refurbished and used products—as long as price, condition, and transparency are right.

This turns the secondary market into a strategic sales channel. Resale creates additional revenue without new production, extends the product lifecycle, and increases the number of touchpoints per product. Studies also show that digital resale platforms open up new customer segments, particularly price-sensitive and younger buyers who would otherwise not appear in the new-product funnel.

At the same time, it becomes clear what happens when brands do not control resale themselves. When resale and price formation take place on external platforms, the market emerges outside the brand. Prices are externally determined, brand perception becomes fragmented, and valuable data on product lifespan, demand, and secondary buyers is lost.

Playbook: How YOU respond to Gen Z consumption

  1. Think products in cycles, not in sales
    Evaluate products based on their total value across multiple usage phases, not just the first sale.‍
  2. Identify resale-ready assortments‍
    Fokussiere dich auf langlebige Produkte mit stabiler Nachfrage und klarem Wiederverkaufswert.‍
  3. Integrate buy-back as a conversion lever‍
    A clear buy-back promise reduces purchase risk and increases conversion rates, especially for higher-priced items.
  4. Keep resale within your own brand context
    Only within your own channels do you retain control over pricing, quality, customer experience, and data.
  5. Use resale data for design & purchasing
    Secondary-market data shows which products, materials, and price points perform well over the long term.

Preparing for circular consumption with Gen Z

Gen Z expects resale, buy-back, and post-purchase services to be a fixed part of consumption. Those who integrate this logic early secure new revenue streams, stronger customer loyalty, and greater control over the product lifecycle.

👉 Take the Circularity Check now or contact us to find out how koorvi helps you manage resale and secondary markets profitably.

FAQs

Why does Gen Z consume differently than previous generations?

Gen Z has grown up in an environment of price pressure, uncertainty, and constant comparison. Consumption is not understood as a status signal, but as a rational decision under risk. Flexibility and adaptability take precedence over ownership. This fundamentally changes the logic of purchasing decisions.

How do you win Gen Z as a customer group?

Gen Z is not convinced by messaging, but by functioning systems. Simple processes, transparent pricing, and integrated resale or buy-back options must be usable without friction. Circular shopping only works when it is seamlessly embedded and offers a clear advantage, such as lower risk or greater flexibility. Moral appeals alone are not sufficient.

Is Gen Z really less brand loyal than previous generations?

Gen Z is often described as less brand loyal, but the reality is more nuanced. Loyalty has not disappeared; it has changed its logic. Instead of identifying with brands as part of their identity, Gen Z evaluates brands based on the value they consistently deliver. If that value is no longer clear or relevant, switching becomes easy because alternatives are always accessible. What drives loyalty today are functional advantages rather than emotional promises. Transparent pricing, seamless digital experiences, and flexible options such as repair, trade-in, or resale create trust and reduce perceived risk. Especially in a context of tight budgets and planned resale, brands are rewarded for making the entire purchase and usage process easier. As a result, Gen Z is often loyal not to logos, but to systems. Brands that support the full product lifecycle—from buying to using, maintaining, and reselling, are more likely to become the default choice. Loyalty, in this sense, is conditional and earned repeatedly through performance, not assumed through image.

Can resale strengthen the primary sale?

Resale reduces perceived purchase risk. When resale value is known or secured, purchase willingness increases, especially for higher-priced products. The primary sale benefits from the fact that the exit is considered from the start. Resale therefore acts as a conversion lever.

What does this mean for the future of the circular economy?

The circular economy will prevail where it is easy to implement, economically viable, and digitally integrated into existing systems. Pure persuasion or ideological arguments are not enough to drive sustainable behavior change. Circular models must deliver tangible value for consumers and measurable economic benefits for companies. The future of the circular economy will therefore be decided less by communication and more by operational execution.