Editor’s Note
This article explores the global rise of secondhand luxury platforms and how this trend is gaining significant traction in China, driven by factors like rising prices and consumer nostalgia.
Perhaps the luxury crisis is only manifesting in prestige stores. Vinted, Vestiaire Collective, and Depop have in recent years become nerve centers for luxury shopping worldwide, growing alongside the passion for secondhand goods that has captivated public opinion. Between constantly rising prices and the nostalgia factor, many consumers have turned to luxury resale platforms to buy their dream pieces. In China, however, secondhand goods have never been widely accepted. One of the main reasons is superstition, as in the country, buying secondhand clothing is considered a bad omen. More broadly, until now, the economic boom has allowed citizens to afford new pieces bought in stores. A boom that was, however, destined to end. The change in Chinese consumer buying behaviors has led to various consequences for the luxury landscape, many negative, but as is often said, not all ills are necessarily harmful. According to some data from iResearch, the secondhand luxury market is expected to reach $30 billion (217 billion RMB), a remarkable growth given that in 2020, the figures were barely $8 billion (58 billion RMB). The Financial Times reports even more exorbitant figures, indicating that China’s luxury secondhand market surpassed 1 trillion yuan (131 billion euros) in 2020. Although the figures vary, one thing is certain: the Chinese secondhand luxury market is experiencing exponential growth.
The pandemic represented a crucial turning point for China’s secondhand luxury market: according to Jacob Cooke, CEO of the marketing group WPIC, the economic pressures related to Covid-19 and travel restrictions accelerated the transition from traditional retail to secondhand. This phenomenon was further amplified by celebrity support, which sparked great interest from the general public. Chen Liang, editor-in-chief of the resale platform DejaWooo, told Jing Daily that seeing favorite influencers or idols wearing vintage pieces had generated “sensational effects online”.
Simultaneously, for many customers, the secondhand luxury market represents access to high-end products, capable of maintaining—and often increasing—their value over time. As highlighted by Mark Tanner, Managing Director of the marketing agency China Skinny, the majority of secondhand luxury consumers in China focus on high-end brands such as Hermès, Chanel, and Cartier. A buying behavior that reflects a practical, investment-focused mentality, unlike the vintage and thrifting culture present in the West.
The growing proliferation of the market has made the value of heritage brand accessories increasingly evident. For example, a Chanel or Hermès bag bought a few years ago can today be resold at a price higher than the original, thanks to their ability to appreciate over time. This dynamic fuels desire for certain iconic brands and products but also has an opposite effect: items available in secondhand stores at prices significantly reduced compared to those in official stores attract more budget-conscious consumers, often drawing them away from the brand stores themselves.
— Jacques Roizen, Managing Director, Digital Luxury Group
At the same time, looking at the prices offered on major resale platforms, the prices do not at all reflect those of the Western market. ZZER is considered one of the largest players in the secondhand luxury market, born first as a physical store (it even has a megastore at Hongqiao Airport in Shanghai) and now become an e-commerce platform. ZZER’s operation is the same as Vinted and Vestiaire Collective: a peer-to-peer transaction based on counter-offers, with an authentication service. On ZZER’s WeChat mini-app, one can find everything from clothing to high jewelry, and the base prices are significantly lower than those on major platforms in the West. For example, a Cartier Tank Americaine with a leather strap on the Chinese app is sold for just over 2000 euros (15,609 RMB), while FarFetch sells the same watch for 5,914 euros. A very rare color of the Chanel Le Boy was listed on ZZER for almost 2900 euros (22,177 RMB), while on Sotheby’s, the same model is still for sale for about 4633 euros. On ZZER, it is possible to find every piece from Louis Vuitton’s iconic denim collection, and one of the backpacks was listed for 2753 euros (21,064 RMB); considering its excellent condition, its equivalent on FarFetch is for sale for 8167 euros. For high jewelry enthusiasts, it is also possible to find many collectible watches, such as the Patek Philippe Golden Ellipse.