Old is gold: the second-hand luxury market in China is thriving

07.11（Updated on 07.11）

In the dynamism of China’s consumer landscape, a significant shift has been observed in recent years: the strong emergence of the luxury second-hand market. As the 
        
        personal luxury goods market surged to an all-time high of 
        
        EUR 362 billion, the Chinese segment itself has a substantial share, reaching an impressive EUR 53 billion in 2023. In the meantime, the second-hand luxury goods market in China was evaluated at around EUR 25 billion in 2023.

How China has emerged as a key market for second-hand luxury products

Second-hand purchases: from shameful to trendy

The shift to second-hand items is quite new. For a long time, Chinese consumers were reluctant to buy used luxury products. Buying pre-owned items used to feel 
        
        shameful to many people, in a country where “keeping the face” is important and economically successful individuals are socially more accepted.

Nowadays, Chinese consumers are increasingly embracing the purchase of second-hand luxury goods as a way to access premium products at more affordable prices. Factors such as environmental concerns, desire for unique products, and changing attitudes towards luxury consumption have also contributed to the rise of this segment. The second-hand luxury market was only 
        
        USD 8 billion in 2020 and is expected to reach USD 32 billion in 2025.

Social media users and defenders of second-hand luxury also highlight how buying these items is a 
        
        synonym of good taste. They argue that it allows one to find rare products with original designs that were discontinued years ago, but often have better craftsmanship and quality than modern goods, because nowadays luxury houses seek profit. For example, 
        
        Chanel stopped plating their bags’ hardware with 24-karat gold after 2008 to optimize production costs. The resale market allows fashion enthusiasts to find and buy these rare, high-quality vintage bags.

High taxation on luxury goods in China pushes consumers to buy second-hand

High taxes on imported luxury goods, coupled with strict regulations on import duties and consumption taxes, make luxury goods prohibitively expensive for many Chinese consumers. The estimated price difference between Europe and China for new luxury items is 30% on average. For example, a 
        
        Louis Vuitton Speedy 25 handbag in Europe would cost EUR 1,550 against RMB 17,600 (around EUR 2,260) in China, which is 31.4% more expensive. As a result, savvy shoppers who cannot go overseas to buy brand-new bags turn to the second-hand market to access luxury goods at more affordable prices.

Consumers’ trust and concerns: Challenges to China’s second-hand luxury market

The importance of authentication due to the lack of trust

In a country where counterfeit goods, unmet delivery promises, and lack of after-sales services fuel users’ mistrust of resale apps, the focus on authenticity cannot be overlooked. Thus, some companies are trying to fight against the general idea that second-hand luxury items are synonymous with “scams”. For example, 
        
        Dewu – an online shopping app offering a marketplace and social media platform for purchasing, reselling, and discussing trendy products – has a unique “authenticate first, ship later” process, providing official certificates, anti-counterfeiting sets, and unique digital IDs for verified products.

Environmental concerns: a motivation for buying second-hand luxury products?

Overall, a growing interest in sustainable fashion and social responsibility is evident. In China, 
        
        72% of consumers give preference to environmentally conscious businesses, higher than the global average of 54%. However, they still won’t pay extra for environmentally friendly goods. Even while environmental challenges are becoming more widely known, Chinese consumers are more focused on the direct, palpable effects on their daily lives.

For second-hand luxury platforms to market their services properly, they need to understand how Chinese consumers feel about sustainability. Although the average Chinese consumer is still only marginally involved in environmental issues, wealthy, urban residents of elite cities tend to be more ecologically sensitive. Therefore, despite initial enthusiasm, these factors contribute to the immaturity of the Chinese second-hand market.

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