The Current Situation and Opportunities of China's Second-Hand Luxury Market
In the global luxury market landscape, the Chinese market is playing an increasingly crucial role. Especially in the second-hand luxury segment, it demonstrates vibrant development vitality and huge potential, providing new growth opportunities for participants in the global luxury industry chain.
I. Continuous Expansion of Market Scale with Growth Rate Far Exceeding the Global Average
In recent years, the market size of China's second-hand luxury market has shown a rapid growth trend. From 2019 to 2023, the market size increased from 17.2 billion yuan to 26 billion yuan, with an average annual compound growth rate of 11%, which is much higher than the global average of 5%. It is expected that by 2025, the market size is likely to exceed 38.4 billion yuan, and by 2030, it will even surpass the 100-billion-yuan mark.
Compared with developed countries, the current penetration rate of China's second-hand luxury market is only 5%, while in developed countries, it generally ranges from 20% to 30%. In France, as high as 75% of consumers have experience in purchasing second-hand luxury goods, among which 32% have formed regular consumption habits. Referring to China's luxury stock value of up to 4 trillion yuan and the market share in developed countries, the domestic second-hand luxury market is expected to reach a trillion-yuan scale in the future, with extremely broad growth space.
II. Diversification of Consumer Groups: Younger Generations and the Lower-Tier Markets as New Growth Engines
1. The Rise of Young Consumer Groups
Post-90s and post-00s have become the main force in luxury consumption. They have a high acceptance of second-hand goods and pay attention to cost performance and environmental protection concepts. Among the 25 - 35-year-old consumer group, 76.3% of people said they are willing to buy second-hand luxury goods, a significant increase compared to 42.8% in 2020. The 21 - 25-year-old Generation Z regards second-hand luxury goods as "affordable luxury." They not only pursue self-expression but also focus on rational consumption, and their consumption motivation has shifted from "conspicuous possession" to "recognition of circular value."
2. The Potential Release of the Lower-Tier Markets
Although the current consumption of second-hand luxury goods in China is mainly concentrated in first-tier, new first-tier, and second-tier cities (accounting for about 70%), with the improvement of the acceptance and purchasing power of luxury goods among residents in third-tier and lower-tier cities, the lower-tier markets are becoming a new growth point. Data from the Zhuanzhuan Group shows that during the Spring Festival in 2025, the order volume of second-hand luxury goods in fifth-tier small cities increased by 33% year-on-year, and the order volume in third- and fourth-tier cities maintained double-digit growth in 2024. Young, middle-class people in counties with stable jobs and no loan burdens show strong interest in second-hand luxury goods, demonstrating the huge potential of the lower-tier markets.
III. The Integration of Online and Offline Channels to Build a Diverse Sales Network
1. The Booming Development of Online Platforms
Online channels such as short videos and live broadcasts have become the main media driving second-hand luxury transactions. Data from Douyin Life Service shows that during the Spring Festival in 2024, the payment GMV of the jewelry and luxury goods industry increased by 51% year-on-year, and the number of paying users increased by 123%. The live broadcast unit price on platforms like Hongbulin is three times that of regular sales. The online transformation has shortened the transaction chain, making second-hand luxury goods shift from a hidden niche hobby to a popular trend.
2. The Indispensability of Offline Stores
Offline second-hand vintage stores have unique advantages in obtaining accurate supply sources, expanding customer sources, increasing repurchase rates, and enhancing brand trust, and their position is irreplaceable. In the first quarter of 2025, offline a year-on-year increase of 31.8%. The integration of online and offline has become the standard for the second-hand economy, providing consumers with a more convenient and diverse shopping experience.
IV. The Accelerated Standardization Process of the Industry and the Continuous Optimization of the Business Environment
With the development of the market, the standardization process of China's second-hand luxury industry is accelerating. The "14th Five-Year Plan for the Development of Circular Economy" issued by the National Development and Reform Commission clearly states that it is necessary to standardize the development of the second-hand goods market and establish and improve standards for the identification, evaluation, and classification of second-hand goods.
Quarantine and the China Entry-Exit Inspection and Quarantine Association, has released the "General Specification for the Identification of Famous Brand Bags." The High-End Consumer Goods Standardization Technical Committee of the China Entry-Exit Inspection and Quarantine Association has also issued the "General Technical Specification for the Identification of Brand Leather Goods" as a group standard. The introduction of these policies and standards provides a strong guarantee for the healthy development of the industry and also creates a more fair and standardized business environment for merchants.
For European luxury merchants, the Chinese second-hand luxury market contains many cooperation opportunities. On the one hand, they can cooperate with Chinese second-hand luxury stores or online platforms to introduce high-quality second-hand luxury goods from Europe into the Chinese market to meet the growing needs of Chinese consumers. On the other hand, they can also leverage the big data and consumer trend insights in the Chinese market to optimize their product strategies and market layouts. We sincerely invite European merchants to cooperate with us to jointly explore this promising second-hand luxury market in China and share the market growth dividend.
