The rise of second-hand shopping platforms in China

China’s cost and environment-conscious shoppers are increasingly flocking to second-hand and resale platforms. Robynne Tindall finds out more

Traditionally, second-hand or vintage apparel was not thought to be desirable for the average consumer in China, especially during the economic good times of the past few decades. However, the popularity of second-hand, resale and pre-owned goods platforms has taken off in recent years, especially among Gen Z shoppers, driven by growing environmental concerns and depressed consumer confidence caused by rising unemployment and the ongoing real estate crisis.

Data show that the value of the second-hand goods market rose from RMB 300 billion (£32 billion) in 2015 to RMB 1.05 trillion (£112 billion) by 2020, and according to a 2021 report released by consulting firm Frost & Sullivan and Tsinghua University’s Institute of Energy, Environment and Economy, it is expected to reach nearly RMB 3 trillion (£320 billion) in 2025. Luxury resale, in particular, is having a moment, with many sellers successfully using platforms like Douyin and Xiaohongshu to boost their sales.

China also has a number of popular second-hand apps, including Plum (Hongbulin), Alibaba-owned Idle Fish (Xianyu), and Tencent-backed Zhuan Zhuan, which appeal to the well-established e-commerce habits of Chinese consumers. Idle Fish and Zhuan Zhuan are consumer-driven marketplaces (similar to Vinted or Depop), while Plum manages the whole consumption process, from authentication for luxury goods to photography to logistics.

In October 2024, Zhuan Zhuan acquired Plum, signalling a shift in the second-hand e-commerce sphere. The combination of Plum’s luxury fashion expertise and Zhuan Zhuan’s authentication expertise (Zhuan Zhuan previously mainly focused on pre-owned electronics, in which authentication and testing is particularly important) could create the platform that finally takes the lion’s share of the second-hand luxury market in China. It will also create further challenges for international second-hand luxury platforms, which have so far struggled to thrive in the Chinese market.

What is driving the growing appreciation of second-hand clothing and goods?

Pre-owned luxury goods are driving a lot of growth in China’s second-hand market, with resale luxury alone predicted to grow to RMB 217 billion by 2025 (£23 billion). As in most countries around the world, the excitement of finding a desirable bag or pair of shoes at a more accessible price is a big reason why many Chinese consumers browse second-hand apps or stores. Moreover, savvy Chinese consumers understand that a high-quality luxury purchase – a Hermès Birkin bag, for example – may even appreciate in value as the years go by.

However, second-hand luxury goods platforms have always struggled with questions about authenticity and counterfeiting. A survey by iiMedia Research found that lack of trust and fear of receiving counterfeit goods stopped over 30% of people from using second-hand platforms. In response, in March 2023, Idle Fish bolstered its authentication capabilities, allowing users to authenticate over 18 million different items in as little as eight hours.

Beyond luxury goods, a growing awareness of the environmental impact of consumerism – especially among Gen Z/younger millennial consumers – is leading conversations about second-hand clothing in China.

A June 2022 consumer survey by PwC showed that 34% of Chinese consumers “often” or “always” agree that a business’ environmental actions influenced their decision to buy – in the US, this figure was just 29%. The Covid-19 pandemic also seems to have accelerated this trend. For example, a KPMG study in 2021 found that since the beginning of the pandemic, 65% of consumers from Greater Bay Area cities have become more conscious of a product’s origins.

Idle Fish claims that the platform and its users reduced three million metric tonnes of carbon emissions over the past year by shopping second-hand instead of buying new.

However, as Zhang Na, founder of sustainable fashion brand Reclothing Bank, pointed out in a recent interview with Tong, second-hand and vintage clothing is also an outlet for creativity and self-expression. “[Previously], the marketplace was conditioned to encourage those consumers [born in the 70s and 80s] to express themselves through luxury brands and a pursuit of upward mobility,” she says. “Now, the new generation of consumers care more about their own unique experiences and identities.”

What are the implications for British brands?

Chinese consumers may be cutting back on new luxury purchases, but the rising popularity of second-hand shopping also presents opportunities for British luxury brands. Effective storytelling about heritage and craftsmanship can encourage consumers to view a brand’s products as an investment. Brands can also consider providing authentication services to ensure that the second-hand products circulating in the market uphold brand standards.

Moreover, this trend emphasises the importance of incorporating conversations about sustainability into marketing in China in an authentic way. This can include working with influencers or key opinion consumers (KOCs) who talk about sustainability.

Moreover, it underscores that Chinese consumers are cost-conscious but willing to spend money on high-quality items.