In China, second-hand luxury goods are gaining popularity

China is used luxury The property market is growing at a time when the economy is slowing, according to market experts and business owners.

Shoppers in China’s $74 billion luxury goods market have always bought new products, not used ones.

Zhu Tainiqi is the Shanghai-based founder of second hand, or used, luxury goods market ZZER. Business has been so good that Zhu is now looking for commercial space to expand his business.

The 33-year-old business owner has seen an increase in people wanting to sell their Hermès Birkin bags or Rolex watches. Additionally, Zhu has seen increased interest from buyers who want to save money.

“More and more people are now aware that they can sell luxury goods for money, and buyers are noticing that they can get a lot,” Zhu said. “They think, ‘Why not give it a shot?'”

He said the number of ZZER shippers, or people putting their wares up for sale, is up 40% so far in 2022 compared to the same period last year. The company now has 12 million members and expects to sell 5 million luxury pieces this year.

The growth of the resale market could have significant effects on the business plans of the world’s leading luxury goods manufacturers. They are facing a drop in demand in China, an important market.

Iris Chan is a Partner and Head of Client Development at Digital Luxury Group, a market research group.

Chan suggested that luxury makers will likely have to “think about how they’re going to manipulate this (resale) market and what role they will play in the whole process. »

China’s second-hand luxury market is expected to reach $30 billion in 2025 from $8 billion in 2020. This information, released late last year, comes from business research group iResearch. New estimates for this year have not yet been released.

Office worker Wang Jianing explores second-hand luxury goods.

“My consumption will certainly be downgraded (this year), but I still like what I like and I can’t control the desire to buy it,” she told Reuters.

A customer looks at bags on display at a store of second-hand luxury goods platform ZZER in Shanghai, China, September 9, 2022. (REUTERS/Xihao Jiang)

Besides ZZER, other Chinese companies, such as Feiyu, Ponhu and Plum, are attracting attention. Each of them earned tens of millions of dollars in investments in 2020 and 2021.

Experts expect local businesses to control China’s luxury resale market, at least in the short term. International companies such as Vestiaire Collective and The RealReal have yet to enter the mainland China market. They told Reuters they had no immediate plans to do so.

Hand bags remain the top-selling item on luxury websites like ZZER, but Zhu said watch and jewelry sales are also growing rapidly.

Prada Messengers or Fendi Baguettes, luxury handbags for women, cost 30 to 40% less on resale sites than in luxury boutiques. But the price difference for some products has widened as more and more people sell products online.

I am John Russell.

Casey Hall and Xihao Jiang reported this story for Reuters. John Russell adapted it for VOA Learning English.

_________________________________________________________________

words in this story

luxury -not. something expensive but not necessary

second hand –adj. not new; having had a previous owner; used

manipulate – v. to manage (a person, a situation, etc.) successfully

consumption – nm buying things

demote – v. decrease in extent, quality or value

Handbag – nm a woman’s small bag or purse used to carry personal effects and money

_________________________________________________________________

We want to hear from you.

We have a new comment system. Here’s how it works:

  1. Write your comment in the box.
  2. Below the box, you can see four images for social media accounts. They are for Disqus, Facebook, Twitter and Google.
  3. Click on an image and a box appears. Enter your social media account ID. Or you can create one on the Disqus system. It’s the blue circle with “D” on it. It’s free.

Every time you come back to comment on the Learning English site, you can use your account and see your comments and replies. Our feedback policy is here.