What's Old is New: Chinese second-hand luxury market shows growth potential

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02:46

The Christmas shopping season may be over, but across China, many are now out looking for upmarket goods at a good price. CGTN's Feng Yilei reports.

A rapidly growing appetite for luxury goods has made China the world's biggest market in this niche area. The recent Bain Luxury Study predicts that China will account for half of all luxury sales by 2025. In a shop in central Beijing, these dazzling and delicate goods await buyers. But what's special about these—they're all pre-owned.

DEREK XUE, VICE GENERAL MANAGER BEIJING HUAXIA KOMEHYO COMMERCIAL AND TRADING CO. "For us, the size of the second-hand luxury goods market is just as big as that for new luxury goods. The trading volume of second-hand luxury goods in China is ascending very fast."

Two years ago, when Huaxia pawnshop started working with Japanese vintage retail giant Komehyo, they saw only a limited amount of high-end goods flowing into the second-hand market. Today, this jointly-opened new shop is feeding the needs of a considerable number of people -- thanks to changing consumption attitudes.

GAO XIN CUSTOMER "I think there's a market for the younger generation. We like buying luxury accessories, but don't really use them everyday. We all want to trade in the old for new styles after a while. It can also be a kind of investment and financing for some people."

The shop manager says they still have much to do in consumer education, to encourage more to sell and buy used luxury goods in the interests of sustainability. But there's a more severe challenge for the entire luxury goods industry- knock-offs.

FENG YILEI BEIJING "To regular shoppers, this Lady Dior bag looks no different than those brand-new ones in a Dior store. Only experienced examiners can tell you whether it's authentic or not, how much it's been used and how much it's worth."

A small miscalculation means both the company and consumer will pay a dear price. With a gap in evaluation standards and legal protection, protecting against fraud is never easy.

DEREK XUE, VICE GENERAL MANAGER BEIJING HUAXIA KOMEHYO COMMERCIAL AND TRADING CO. "The top priority and core competence of this business is the assurance that comes from the capacity to identify the counterfeits and take better care of a used product for future use. Apart from that, dealers have different advantages in prices or after-sale services."

The burgeoning industry is attracting a wide variety of participants. That includes boutiques like this, individuals working on their own networks, and even some well-known online trading platforms. Experts say they all have a long way to go. Feng Yilei, CGTN, Beijing.