The second-hand luxury obsession finally arrived in China

Vinted, Vestiaire Collective, and Depop have become central hubs for luxury shopping worldwide in recent years, growing alongside the passion for second-hand items that has permeated popular sentiment. Amid rising prices and the nostalgia factor, many consumers have turned to luxury resale platforms to purchase their dream pieces. However, in China, second-hand shopping has never been widely accepted. One primary reason is superstition, as buying second-hand clothing was historically considered bad luck in the country. More broadly, the previous economic boom allowed citizens to afford in-store purchases. Yet, that boom was bound to end. Changes in Chinese consumer behavior have had significant effects on the luxury landscape, many of which are negative. But as the saying goes, every cloud has a silver lining. According to data from iResearch, the luxury second-hand market is projected to reach $30 billion (217 billion RMB), a significant increase from just $8 billion (58 billion RMB) in 2020. Meanwhile, the Financial Times reports even more staggering figures, stating that China’s luxury second-hand market surpassed 1 trillion yuan (€131 billion) in 2020. Despite discrepancies in the numbers, one thing is certain: China’s luxury second-hand market is experiencing explosive growth.

The pandemic marked a crucial turning point for the luxury second-hand market in China. According to Jacob Cooke, CEO of the marketing group WPIC, economic pressures related to COVID-19 and travel restrictions accelerated the shift from traditional retail to second-hand. Even the giant Alibaba has invested in this market in recent years by creating the Xianyu platform, part of the larger Taobao marketplace, dedicated to C2C sales of secondhand goods. This trend was further fueled by celebrity endorsements, which sparked great interest among the general public. Chen Liang, managing editor of the resale platform DejaWooo, told Jing Daily that seeing influencers or favorite idols wearing vintage pieces generated “sensational online effects.” At the same time, for many customers, the luxury second-hand market provides access to high-end products that retain—and often increase—their value over time. As highlighted by Mark Tanner, managing director of the marketing agency China Skinny, most Chinese luxury second-hand consumers focus on high-end brands like Hermès, Chanel, and Cartier. This purchasing behavior reflects a practical and investment-oriented mindset, contrasting with the vintage and thrifting culture prevalent in the West.

The growing proliferation of the market has made the value of heritage brand accessories increasingly evident. For instance, a Chanel or Hermès bag purchased a few years ago can now be resold at a higher price, thanks to its ability to appreciate over time. This dynamic fuels the desire for certain iconic brands and products but also has the opposite effect: items available in second-hand stores at significantly discounted prices compared to official ones attract budget-conscious consumers, often pulling them away from brand stores. As Jacques Roizen, managing director of the Digital Luxury Group, notes, “The expectation of value appreciation over time enhances the allure of certain brands, but products offered at steep discounts in the second-hand market attract bargain hunters, diverting customers from official stores.”

photo courtesy of nss magazine

photo courtesy of nss magazine

photo courtesy of nss magazine

photo courtesy of nss magazine

At the same time, the prices offered on major resale platforms do not reflect those of the Western market. ZZER is considered one of the largest players in the luxury second-hand market. Initially starting as a physical store (now boasting a megastore inside Shanghai’s Hongqiao Airport), it has since transitioned into e-commerce. ZZER operates similarly to Vinted and Vestiaire Collective, facilitating peer-to-peer transactions based on counteroffers and also providing authentication services. On ZZER’s WeChat mini-app, everything from clothing to fine jewelry can be found, with base prices significantly lower than those seen on major Western platforms. For instance, a Cartier Tank Américaine with a leather strap sells on the Chinese app for just over 2,000 euros (15,609 RMB), while Farfetch sells the same watch for 5,914 euros. A rare colorway of the Chanel Le Boy bag is listed on ZZER for nearly 2,900 euros (22,177 RMB), while the same model is currently on sale at Sotheby’s for about 4,633 euros. ZZER also offers every piece from Louis Vuitton’s iconic denim collection, including a backpack priced at 2,753 euros (21,064 RMB). By comparison, a similar piece in excellent condition is sold on Farfetch for 8,167 euros. Luxury watch enthusiasts can also find collectible timepieces, such as the Patek Philippe Golden Ellipse, priced at 5,613 euros (43,000 RMB) on ZZER. Meanwhile, Chrono24 lists the same model—albeit in worse condition—for 8,000 euros.

ZZER is just one example of many businesses that thanks to social media, have expanded their reach, transforming from physical stores into successful digital platforms. To engage younger audiences, many luxury second-hand retailers have invested in Douyin (the Chinese equivalent of TikTok) and Xiaohongshu (the local counterpart of Instagram), creating tailored content for Gen Z and Millennials, who represent the sector’s primary target demographic. Data shows that the age group between 20 and 25 ranks third, accounting for 17% of the market, highlighting Gen Z’s growing importance as a driving force in luxury second-hand consumption. To capture this audience, platforms are focusing on live streaming: real-time sessions showcasing unique pieces and telling their stories. These streams are opportunities to sell and educate consumers about the value and authenticity of the items, making the buying and selling process an interactive and, at times, entertaining experience. In a culture where bargaining is deeply ingrained, live streams become the new virtual marketplace, blending tradition and innovation. This approach, combining the allure of discovering exclusive pieces with the spectacle of an online show, is reshaping how young people perceive and purchase luxury second-hand goods.

Luxury is evolving—or perhaps it’s better to say it has already changed. The emergence of the Chinese luxury second-hand market is a striking example of consumers’ need for a radical shift in the luxury landscape. If even in China—where ancient traditions and superstitions prevailed—the appeal of traditional retail is waning, there must be a reason. Prices, nostalgia for archival pieces, and the poor quality of current products are just symptoms of a larger issue: brands are no longer able to attract and convince consumers to purchase (at least not in-store). If this is happening in China, where the largest maisons have courted and cultivated the market for years, it seems fair to conclude that the great luxury crisis of this year will likely persist into 2025. Are we witnessing the dawn of a new chapter in the fashion world?