While Chinese consumers are struggling, the country’s used luxury goods market is reportedly booming.
As the Financial Times (FT) reported Sunday (November 24), Cartier owner Richemont, Gucci’s parent company and other companies kering and LVMH all recently recorded decrease in sales Asia-Pacific region (excluding Japan) dominated by China.
Richemont’s CEO stated in the report: He warned that the slump in Chinese consumers was “probably a medium- to long-term phenomenon.”
At the same time, the FT added that there are signs that consumers have a healthy appetite for second-hand luxury goods.
In September, it acquired Zhuanzhuan Group, an online marketplace for used goods. luxury Resale platform Hongbulin. The broader market for these products has more than tripled since 2015, the report said, citing data from consulting firm Frost & Sullivan and Tsinghua University.
There is not much recent data on the second-hand luxury goods market, but online platforms such as ZZER and Xianyu, which offer a place to resell luxury goods for a commission, are increasingly being used, the FT said.
Announced that 5,000 new products will be stocked at ZZER store in Shanghai, which opens in 2022 per dayexhibiting a huge amount of handbags and high-end clothing distributed in China.
Jacob Cook, CEO of Beijing-based marketing group WPIC, said there is “increasing interest in used luxury goods as a cost-effective alternative” amid the coronavirus pandemic. He pointed out that this had resulted in travel restrictions and people being prevented from going out. buy products overseas.
In more news from the luxury industry, PYMNTS I wrote recently About series of mergers The partnership in this field comes in response to declining consumer spending in key regions such as China and the United States.
By sharing resources and insights, companies can miteresa and authentic brand group Positioned for growth amidst ongoing market challengeshighlight The key role of innovation and adaptability in the future of the luxury goods sector.
In an interview with PYMNTS, Amanda Raisaid retail analyst and consulting firm MacMillan Doolittle. — Considering the predicted slowdown in the growth of the global luxury goods market, pespecially in America and China — Luxury brands rely on Partnerships and acquisitions to stay competitive and drive growth.
“Mitheresa’s acquisition Yoox Net-a-Porter’s work is a great example of how companies are partnering to improve operational efficiencies, scale operations, and extend their reach to multiple segments of luxury consumers.” Mr. Rai said. “The combined company will leverage multiple brands, including Mytheresa, Net-A-Porter, and Mr. Porter, while reducing costs by consolidating many back-end business functions such as legal, IT, and human resources. It is likely that you will be able to achieve different heights” – the end consumer. ”
