The market for used PCs is burgeoning. More than 2,000 such PCs are sold at this store each month, spawning a string of such outlets. There are more than 200 used PC shops around the country, whose shipments in 1995 totaled 470,000 units, or 8% of the market for new computers, according to an estimate by a private research institute.

Chains of used-book shops are also moving into the mainstream. One pioneer is a retailer with more than 300 franchised outlets today, just seven years after it opened its first shop. These outlets do not have the stuffy, conservative image of traditional used-book shops but resemble outlets of major new book sellers with their brightly lit, spacious decor.

The books on the shelf, moreover, all look new; they've been thoroughly cleaned--with files and detergent where necessary--and sell for less than half the original price. The chain rang up 7 billion yen (50 million dollars) in sales between April 1997 and March 1998, and it aims to become the first used-book dealer to gain a listing on the stock exchange by 2001.

A slightly more esoteric type of used-goods shops cater to restaurant owners. Cooking equipment for specific cuisines often fall into disuse due to the rapidly changing tastes of Japan's gourmet diners. A store specializing in restoring and marketing unused equipment opened in Tokyo in spring 1997, and it registered 300 million yen (2.1 million dollars) in sales in its first year. The store hopes to double that figure this year.

Tapping into Latent Demand
Until the beginning of the 1990s, the only sizable market for used products was that for used cars. As recently as the late 1980s, both retailers and shoppers regarded consumer durables almost as disposable products. New models emerged one after another, and when a machine broke down, it was often easier and cheaper to purchase new equipment than to get it repaired. As a result, a "throwaway mentality" took root.

With the collapse of the bubble economy and the ensuing prolonged slump, however, people began to rethink their spendthrift ways. Growing awareness of environmental issues also prompted many to recycle or reuse discarded products. Initially, though, recycling efforts were largely limited to bazaars organized by volunteer groups and community flea markets, as a stigma against used products hindered the development of a used-goods market.

The shops that have succeeded in surmounting this obstacle by offering products that look almost like new are all venture firms. Lower price tags are certainly a key element to the popularity of semi-used goods, but an equally important factor has been the efforts of these enterprising firms to tap into latent demand.