Used luxury goods hot online

China's secondhand luxury goods market is expected to embrace the most intense competition this year after nearly a decade of development, and online platforms have increasingly become important shopping channels for consumers, a new report said.

Fueled by the rapid growth of short video platforms and livestreaming sessions, competition in the pre-owned luxury goods market in China has become increasingly fierce, said an industry report released in April by the University of International Business and Economics in Beijing and the China Entry-Exit Inspection and Quarantine Association.

China's turnover rate for secondhand luxury products follows rates in the United States, Japan, the United Kingdom and France. The turnover rate in the U.S. was higher than 30 percent in 2021, tops globally, the report said.

"With continued willingness to spend from high-income individuals, and the pursuit of consumption upgrade by middle-income consumers, the luxury market in China has maintained a strong growth momentum," said Wang Lixiang, an official of the luxury professional committee at the association.

Chinese consumers aged between 29 and 41 have become the core demographic for pre-owned luxury product purchases, supported by their ample spending appetites and capability.

In addition, there has been growing demand from Gen Z consumers — those born between the mid-1990s and the early 2000s — and they are more likely to purchase vintage products or those with unique designs or limited editions, the report said.

Melissa Liu, a 31-year-old office employee in Beijing, bought a secondhand Chloe bag recently from a store for less than 3,000 yuan ($415). She said it was significantly cheaper than a brand-new bag and the condition of the bag was quite good.

With frequent interactions on social media platforms and short-video platforms by young consumers, it has become easier for people to find different styles and make purchases, the report said.

China's luxury market experienced a strong rebound in 2023 after the country optimized its COVID-19 response measures, and it is projected that China's luxury market will experience mid-single-digit growth this year, although it's not yet back to the highs of 2021, said consultancy Bain & Co.

The fundamentals of luxury consumption in China remain strong over the long run, although there are uncertainties in the near term, such as the speed of consumer confidence recovery and the growth of luxury shopping overseas, Bain said.