China’s Resale Craze: How a Shanghai Startup Is Riding the Luxury Wave
In a twist that feels almost cinematic, the Chinese economic slowdown has turned into a golden opportunity forZhu Tainiqi, the founder of the second‑hand luxury marketplace Zzer. While the nation’s GDP has been shrinking under the weight of COVID‑19, Zhu’s shop is opening up in a flood of glitzy, pre‑owned goods.
Why People Are Dropping Their Handbags and Watches
- With pockets tighter than a drum, folks are now willing to trade Hermes Birkin bags and Rolex watches for cold, hard cash.
- “Everyone’s discovering that selling luxury isn’t just a thought experiment – it’s a real paycheck,” Zhu says. “The buyers notice the savings and say, ‘Why not give it a go?’”
- The surge is nothing short of 40% in 2022 compared to the same period last year, which Zzer recorded as a 12‑million‑member community.
From 2022 to Now: The Numbers Talk
- Consigners (the people who list items) have skyrocketed by 40%.
- With those numbers, Zzer’s forecast is pegging five million luxury pieces to be sold this year.
What This Means for China’s Luxury Market
China’s luxury sector, worth about $74 billion (or S$107 billion), has long been a hard‑to‑teach market. The second‑hand slice, unlike Japan or the U.S., has struggled due to a belief in “new is better” and a fear of counterfeit monsters. But the tide is turning.
“The growing interest in resale could shift how big brands think about this space,” says Iris Chan, partner at Digital Luxury Group. “They might start playing a larger role in the whole buying–selling chain.”
Bright Future Forecasts
- Research from iResearch predicts a jump from $8 billion in 2020 to a whopping $30 billion by 2025.
- New estimates are on the horizon, and the ripple could reshape China‑focused strategies worldwide.
In short, while China’s economy may be tightening, its luxury resale market is expanding in a way that benefits entrepreneurs like Zhu – and let’s be honest, it gives luxury lovers a surprisingly affordable way to keep their style alive.
Handbags, jewellery
Wang Jianing’s Luxury Quest in a Tight‑Budget era
Good news, shoppers! Even when wallets are tightening, some folks still crave that sleek, high‑end look. Office‑goer Wang Jianing is a prime example: “I’m definitely cutting back, but I can’t resist the urge to buy what I want.” She’s spotted in Shanghai’s buzzing downtown, in front of layers of Louis Vuitton and Gucci bags, trying to convince herself that a pre‑owned bag is the ticket.
Zzer: Turning Second‑hand Luxury into Business Gold
- Founded online in 2016, Zzer has now opened brick‑and‑mortar outlets in Shanghai and Chengdu.
- Its next step? Expanding to new cities like Beijing, Guangzhou, and Shenzhen—expansion fueled by the growing appetite for “antique chic.”
- Other local rivals—Feiyu, Ponhu, and Plum—are also chasing the same trend, gathering plenty of venture funding in 2020‑21 to fine‑tune authentication and widen their reach.
Why Chinese Markets Stay Local
While giants such as Vestiaire Collective and The RealReal span the globe, they’re still outside China’s doors, confirming no plans to hop aboard this resale train anytime soon. Analysts predict that Chinese players will keep reigning for the foreseeable future.
Categories That Capture the Crowd
- Handbags are the headline act—always the first stop for shoppers.
- Watches and jewelry are now gaining traction, with sales racing up faster than a luxury brand’s latest runway reveal.
Take for example a Prada Messenger or a Fendi Baguette—in resale shops, these can fetch 30–40% less than a brand‑new price. If you’re buying a Prada bag, this could already mean a smaller leash on your bank account.
Observations from a Vintage Vet: Ou Huimin
Ōu Huimin, who runs the Ding Dang store in Guangzhou and streams national sales, says the market’s become a bit of a roller‑coaster:
“Admirable pieces like the Rolex Submariner shot up around 250% between 2020 and 2021—then dipped 60% this year.”
“Now consumers are being more rational,” she adds. She’s basically saying, “We’re not squinting at price spikes like a crazy night‑cliffhanger.”
Key Takeaway
In a climate that’s tightening budgets, the second‑hand luxury market is burning bright—led by local brands, not international ones. And for folks like Wang, the allure of owning something chic while saving a few bucks is just too tempting to pass up.
