Hyundai Department Store has officially launched a 'buy back' service that purchases fashion items used by customers and rewards them with points, promoting a sustainable consumption culture. The service aims to strengthen its role as a resource-circular re-commerce model and plans to expand to offline stores in the future.
On the 9th, Hyundai Department Store announced that it will officially launch its 'buy back' service starting this month, which refunds points for second-hand fashion products purchased from customers. This is a resource-circular re-commerce model and represents a strategy for achieving sustainable consumption, which is rare in the department store industry.
The buy back service allows customers to apply for the sale of their premium fashion products through an online platform. The process includes collecting and inspecting the products, with compensation awarded in Hyundai Department Store Group integrated membership points (H points). H points can be used like cash at Hyundai Department Store, outlets, and The Hyundai.com.
This service is operated in collaboration with the resale solution startup 'Madeleine Memory'. When customers apply for sales through The Hyundai.com website or app, the collection and inspection of products are conducted, and inspection criteria include components, labels, and release dates. For items that pass inspection, an amount equivalent to the second-hand market value will be awarded as H points.
The brands handled by the buy back service include over 130 premium brands available at Hyundai Department Store and The Hyundai.com, and Madeleine Memory plans to resell these second-hand products through its platform starting in August.
As the re-commerce market rapidly grows, the buy back service stands out for providing reliability and convenience by allowing customers to avoid the need to find separate transaction platforms or wait for buyers, as Hyundai Department Store directly certifies and purchases the products.
Hyundai Department Store emphasized the significance of this service in the context of transitioning beyond simple second-hand transactions to a sustainable consumption culture that embodies ESG values. Particularly as environmental issues in the fashion industry have become a social concern, the circulation of second-hand clothing is gaining attention from an environmental protection perspective.
The pilot operation conducted for about two months starting in May received positive feedback. More than 1,000 customers participated, with over 30% of them utilizing the service more than twice. Additionally, the percentage of customers who reused the H points received from purchases towards buying products of the same brand reached 45%.
Hyundai Department Store plans to install second-hand product purchase centers not only online but also in its offline department store locations to expand customer touchpoints.