China’s coronavirus-driven economic slowdown is proving to be a boon for its second-hand luxury market which is tipped to grow to $30billion in 2025 from $8billion in 2020, as per consultancy iResearch.
There is a surge in people looking to sell their Hermes Birkin bags or Rolex watches to raise cash, as well as a jump in interest from belt-tightening shoppers. The trend indicates a significant change in China’s $74 billion luxury goods sector, where the second-hand luxury sub-segment has been slow to take off versus other markets such as Japan and the U.S. due to a preference for newness and fears of unsuspectingly buying a fake.
Top platforms in this segment are local names, such as Feiyu, Ponhu, ZZER and Plum. Each of them drew tens of millions of dollars in venture capital funds in 2020 and 2021 with an eye to improving authentication practices, widening customer reach and, in some cases, moving from online-only to online-offline models.
China’s luxury resale marketplace is expected by analysts to remain dominated by local players for now. International companies are yet to enter the China market and they have no immediate plans to do so.
Reference – https: / / www. businessoffashion. com/ China' s- second- hand- luxury- segment
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