Mercari Launches 'm department,' a Reuse Service with Professional Quality Assurance

Mercari, Inc. (hereinafter 'Mercari') will begin offering the professional quality-assured reuse service 'm department (Emu Depātomento)' (hereinafter 'm department') starting Tuesday, July 14, 2026.

While demand for reused goods is growing amid rising prices, Mercari's survey reveals that consumers have concerns about 'product quality' when purchasing high-value reused items. In this context, 'professionally guaranteed reused goods' are gaining global attention as a 'third market' beyond new and used goods. 'm department' is Mercari Group's new marketplace designed to accelerate this trend in Japan.

Overview of 'm department (Emu Depātomento)'

'm department' is a new e-commerce site independent from the Mercari app. Only specialized vendors who pass a rigorous screening process can open shops, with 88 companies participating at launch. All products offered are 'refurbished items (refurbished products (Note 1))' and 'authenticity-verified brand goods' that have undergone inspection, repair, cleaning, and authenticity verification. 'm department' specializes in offering high-quality products at accessible prices, backed by professional quality assurance, comprehensive warranty, and return policies.

• 'm department' EC site URL: https://mdepa.jp.mercari.com/

Note 1: Reused goods that have undergone inspection, repair, and cleaning by manufacturers or specialized professionals.

Background for Launching 'm department'

[Reuse demand rising for smartphones and brand goods amid inflation]

Japan's reuse market has expanded for 15 consecutive years, reaching ¥3.2628 trillion in 2024, led by platforms like Mercari, used by approximately 23 million people monthly (Note 2). Particularly driving market growth are 'mobile phones and smartphones (growth rate: +22.4% year-on-year)' and 'brand goods (growth rate: +15.7% year-on-year)' (Note 3).

Underlying this growth is the current 'inflation.' The average selling price of smartphones is projected to rise 6.9% year-on-year in 2026 (Note 4), and brand goods continue to see price increases, with luxury brands frequently adjusting prices in recent years.

Mercari's survey also found that about one in five respondents said they are 'considering reused goods more due to inflation' (Note 5), indicating rapidly growing demand for high-value reused goods amid soaring new product prices.

Note 2: As of May 2026

Note 3: Recycle Keizai Shimbun, '2025 Reuse Industry Market Size Estimate (2024 Edition)' (published September 26, 2025) https://www.recycle-tsushin.com/news/detail_11719.php

Note 4: Counterpoint Research Japan, Global Smartphone Shipment Tracker and Forecast (December 18, 2025) https://japan.counterpointresearch.com/insights/2026-smartphone-shipment-forecasts-revised-down-as-memory-shortage-drives-bom-costs-up/

Note 5: Mercari, Inc., 'Survey on Awareness and Behavior Regarding Inflation and Reuse Usage' (Survey period: May 20–21, 2026; Survey targets: 10,000 men and women aged 20–60 for preliminary survey, 1,040 men and women aged 20–60 for main survey) (published July 14, 2026) https://about.mercari.com/press/news/articles/20260714_research/

[Around 70% feel uneasy purchasing high-value reused goods like smartphones and brand items]

On the other hand, it is known that consumers have 'concerns about quality' when purchasing high-value reused goods. In Mercari's survey, about 70% of respondents said they 'feel uneasy' about purchasing reused items such as 'high-end brand fashion items (Note 6)' and 'smartphones, PCs, and tablets.'

The biggest concerns are 'fear of counterfeits and copies' (73.3%) for 'high-end brand fashion items' and 'risk of malfunction or defects (e.g., battery degradation)' (73.3%) for 'smartphones, PCs, and tablets.' These 'quality concerns'—such as authenticity and internal deterioration, which consumers cannot easily judge themselves—are significant barriers preventing purchases of high-value reused goods.

Note 6: In this survey, 'high-end brand fashion items' primarily refer to bags, watches and jewelry, clothing, and shoes.

['Professionally guaranteed reused goods' emerging globally as a 'third market' after new and used goods]

To address these quality concerns, 'professionally guaranteed reused goods' are emerging globally as a 'third market' following new and used goods.

For example, the global refurbished smartphone market is projected to expand to approximately $99.4 billion by 2033 (Note 7). In the fashion industry, manufacturers and specialized vendors globally are increasingly offering services that inspect, maintain, and authenticate products before reselling them with quality assurance.

Mercari's survey also found that over 80% of respondents prioritize 'quality assurance' when purchasing high-value reused goods, suggesting that professional quality assurance will drive new demand and be a key to market expansion.

Note 7: Global Information Inc., 'Refurbished Smartphone Market Size, Share, Growth Analysis: By Operating System, Smartphone Type, Sales Channel, Region – Industry Forecast 2026–2033' https://www.gii.co.jp/report/sky1900039-refurbished-smartphone-market-size-share-growth.html

Service Details of 'm department (Emu Depātomento)'

In response to this latent market demand, Mercari is launching 'm department' as a new service to establish a 'third market' beyond new and used goods.

* Some images provided by Eready Co., Ltd. https://mdepa.jp.mercari.com/shop/72MyrgJRkAapWdLKXLM7GT

<Features>

Feature 1: 'Professional Quality Assurance' for all products

Specialized vendors conduct inspection, repair, cleaning, and authenticity verification, handling only products that meet quality standards. For refurbished products (smartphones, tablets, laptops, cameras, lenses), they perform functionality checks, battery warranty, cleaning, and data deletion. For brand goods (bags, accessories, wallets and small items, watches, clothing, shoes), authenticity verification is conducted by each shop's appraiser to ensure quality.

Feature 2: Comprehensive warranty and return system for 'peace of mind after purchase'

Refurbished products come with a 180-day operational warranty after shipment. In the event a product fails to function properly,