Circular Economy Governance and its Influence on Second-Hand Luxury Consumption: Insights from Turkey

Abstract

The circular economy, governed by sustainable frameworks, has become increasingly important with rising environmental awareness. As customers prioritize eco-consciousness, they focus on second-hand products that extend product lifespans and promote sustainable consumption under effective governance. Luxury goods, due to their superior quality, durability, and timeless appeal, are particularly well-suited for second-hand markets, offering opportunities for a governance-driven closed-loop consumption system. This study explores the second-hand shopping trend among Turkish consumers, specifically its validity for luxury consumer goods, a key component of the circular economy. Employing a qualitative research method and an exploratory model, in-depth interviews were conducted with 10 participants. The findings reveal that second-hand luxury product consumption is increasingly common among Turkish youth. This trend, facilitated by improved governance, aligns with circular economy principles and enables middle- and lower-income segments to access luxury products more affordably. Governance mechanisms are crucial in ensuring equitable, sustainable practices in this market, contributing to stakeholder-friendly outcomes. Overall, integrating governance with circular economy initiatives strengthens the movement toward environmentally conscious consumption and fosters inclusive access to luxury goods in Turkey. This highlights the potential of governance to transform consumer behavior toward sustainable economic models.