Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

A millennials love affair: China's second-hand luxury goods market booms

share with twitter share with LinkedIn share with facebook
10/16/2020 | 01:29pm EDT
Sun Shaqi displays handbag during a livestreaming session for the second-hand luxury goods retail platform Plum in Beijing

BEIJING (Reuters) - China's love for luxury is spilling over into the once shunned second-hand goods sector, with online stores surfing a wave of pent-up demand from shoppers, led by millennials, who have been forced into belt-tightening by the coronavirus pandemic.

The rapid proliferation over recent years of second-hand luxury sales online platforms have helped fuel an expansion of the market, similar to those of U.S. online luxury reseller The RealReal Inc or Europe's Vestiaire Collective.

"Our income recorded a surge this year during the pandemic as offline stores are mostly closed," said Xu Wei, founder of Plum, a second-hand luxury products company in Beijing which is especially popular with millennial women from China's lower tier cities.

Chinese consumers have traditionally shunned second-hand goods, though that has undergone a shift over the past decade or so led by younger, more environmentally conscious consumers looking for affordable high-end goods.

"Compared to completely new products, second-hand products are more economical for them," Xu said. Sales growth at Plum have averaged over 25% month-on-month in the first half.

The actual size of the Chinese second-hand luxury goods market is small, luring platforms such as Plum, Ponhu and Feiyu which are betting on strong growth over coming years.

A joint report by China's University of International Business and Economics and Isheyipai, a platform for second-hand luxury deals, estimated that sales of second-hand luxury products in China accounts for just 5% of the overall luxury market, compared with 28% in Japan and 31% in the United States.

Consultancy Bain estimates that Chinese consumers will account for nearly 50% of the global luxury market -- valued around $374-386 billion -- by 2025.

Millennials, those in their 20s and 30s, are a big market for the second-hand goods retailers. The joint university-Isheyipai report estimates that 52% of the second-hand luxury goods consumers in China are below 30 years old, a segment bigger than the entire U.S. population.

On Plum's platform, a Louis Vuitton Speedy 25 Monogram rated at 85% new was offering at 4,548 yuan ($676.44), compared with $1,560 on the brand's homepage. A 90% new black Gucci GG Marmont small shoulder bag was sold at 4,890 yuan ($727.31) versus the official price at $2,250.

Sun Shaqi, a livestreamer who has 6.5 million followers on Douyin, the Chinese version of popular short video app TikTok, is one of many personalities promoting the idea of buying second-hand.

Livestreaming has recently become a widely-used marketing medium in China.

"With the money for one bag, here you can buy 3 to 4 (second-hand), isn't it a good deal?" she asked in a recent livestream while holding up a red patent leather Louis Vuitton bag.

"Who will know it is a second-hand bag when you carry it?"

($1 = 6.7234 Chinese yuan renminbi)

(Reporting by Fang Nanlin, Sophie Yu and Brenda Goh; Editing by Shri Navaratnam)

Stocks mentioned in the article
ChangeLast1st jan.
LVMH MOËT HENNESSY - LOUIS VUITTON SE -0.62% 430.2 Real-time Quote.4.37%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.31% 6.6561 Delayed Quote.-4.06%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
01:41pOil inches up on U.S. stimulus hopes, rising virus cases keep prices in check
01:36pGoogle calls Justice Department lawsuit 'deeply flawed'
01:36pU.S. says Google breakup may be needed to end violations of antitrust law
01:31pWall Street backs Intel's $9 billion sale of NAND unit to Hynix
01:26pStimulus bets drive Wall Street higher
01:26pStimulus bets drive Wall Street higher
01:21pFed's Evans says recovery could stall without more fiscal stimulus
01:18pU.S. CDC reports 219,499 deaths from coronavirus
01:16pNEWS HIGHLIGHTS : Top Company News of the Day
01:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
Latest news "Economy & Forex"