(Yicai Global) Nov. 14 — China’s second-hand luxury market with the main focus on women’s fashion is expected to have a compound annual growth rate of 15 percent in the next three years, according to a consultancy.
The resale market for luxury products should rise to CNY34.8 billion (USD4.9 billion) by 2025 due to rising markups of collector items and changes in consumption habits, according to a report from the Qianzhan Industrial Research Institute.
Buying second-hand goods is becoming less stigmatized as an increasing number of Chinese consumers are striving to buy luxury to satisfy their material and status desires and manage their wealth.
Prices of even new items are rising as several major luxury brands, including Hermes, Louis Vuitton, and Cartier, have started a new round of price hikes after they boosted their prices in the first half.
American jewelry maker Tiffany said early this month it will raise its prices globally. Moreover, French fashion house Chanel increased its jewelry and wristwatch prices this month.
Luxury products are investments and items of consumption as reselling these products may even provide returns, an employee at fashion trading platform Plum told Yicai Global.
Amid the consumerist frenzy of the annual shopping festival of Double-11, shoppers are also eyeing second-hand goods. The price of a certain Chanel classic flap bag surged by 22 percent in the past three years, according to data from Plum. That of a Gucci Jackie jumped by 32 percent within a year.
Trends and habits are changing toward more sustainable directions. The concept of consumption is shifting and this has made the circular economy a new business focus in recent years, said Huang Wei, chief executive of Zhuanzhuan Group, which invested USD100 million into Plum.
Editors: Shi Yi, Emmi Laine, Xiao Yi