When luxury encounters "used"

According to statistics, Chinese people in 2013 were equivalent to buying 47% of the world's luxury goods, becoming the undisputed biggest customer in the global luxury goods market.

If there is a purchase, it will be sold. At present, the total amount of luxury goods that can be secondarily circulated by Chinese consumers is about RMB 300 billion, and it shows a rapid growth of about 20% per year. The number of second-hand luxury stores increased from 512 in 2012 to 823 in 2013, an increase of 37.8%, and the market distribution began to spread from the first-tier cities to second and third-tier cities.

"Luxury" meets "second hand". Although the second-hand luxury goods market is expanding, it also has its growing troubles.

Zhou Ting, president of the Wealth Quality Institute, pointed out that China's second-hand luxury goods market has just started in the last two to three years. It is quite immature regardless of consumer psychology or business methods.

Face mentality

At the Milano station of the second-hand luxury goods store in the Commercial Street of Jianguo Road, Jianguo Road, Beijing, many bags and accessories of first-tier brands such as lv, hermès, prada and burberry are neatly displayed. The warm lighting in the shop and the exquisite decor make these second-hand. The goods still look luxurious. According to the oldness of the goods, the price is generally 5-8 fold of the original price.

Customer Li ** is a white-collar who entered the workplace. She said that buying second-hand luxuries is a last resort. He has limited financial resources, no luxury, and has no face in front of his colleagues.

"Anyway, luxury goods are just decorations for others to see." Lee said. She just visited a circle of neighboring luxury goods stores and thought it was more affordable for second-hand stores. "If you are lucky, you can find good things here that are cheap and beautiful, as long as you don't tell them, nobody knows that they are used."

Most of the people who come to shop are young people. Because of work and personal reasons, they need to purchase luxury goods as a “front line” to support the front, but they also lack financial resources, and relatively low-priced second-hand luxury goods become their choice. Most popular brands with high brand recognition, such as lv, chanel bag.

The Wealth Quality Institute's 2013 China Used Luxury Goods Report pointed out that after 80, it became the most important consumer group of second-hand luxury goods. However, the overall income of this group is low, the sustainability of consumption power is unstable, and the sensitivity to price makes it very easy for them to convert into a super luxury consumer, that is, a fake consumer.

For second-hand luxury goods operators, this is a double-edged customer base, which further lowers trading prices, reduces profit margins, and becomes a ready-to-go away customer.

Of course, second-hand does not mean absolutely cheap, there are many limited-edition or commemorative items at Milan station, such as hermès birkin bag, they come through the secondary circulation channels, the price is not higher than the market price. According to the clerk, most of the purchases of such goods are luxury goods collectors or customers with gifts. They can demonstrate their identities for their own use and gifts for their gifts.

Used new products

Under the psychological influence of face, customers prefer second-hand new products.

According to Milan Station's 2012 annual report, according to the unused products and second-hand products, unused products accounted for 57% and used products only 43%. It can be seen that consumers go to second-hand shops to buy new products.

"I can't accept the old second-hand goods, although after care, the product phase is not bad, but people used to always feel awkward, may as well spend more money to pick a new one." Customer Zhao ** said.

At present, second-hand luxury goods stores generally have two ways of receiving goods. One is the cash buyout of the shop, the brand and quality of the package determine the price; the second is the customer consignment, the shop draws a commission of 10% to 20%, if not sold can be withdrawn.

Yang Xu, the owner of the second-hand luxury exchange store v2 of Beijing Jianwai soho, if it chooses to consign, some brands with low awareness in China or second-hand goods that already have a sense of “use” will be unsalable, and too many counterfeit goods will be sold. Will affect the customer's shopping experience. The cash buyout method is more inclined to the new best-selling models, which is more conducive to the circulation of goods and capital.

“Our stores mainly receive new and new products, and 80% of new products are not included. The 80% of products sold in the store are brand new.” Yang Xu introduced.

“Europe and the United States, Japan, and even Hong Kong, China, the second-hand luxury goods industry started earlier, the concept of consumers is more mature, that second-hand goods are both economic and environmental protection, which is very different from the concept of consumers in the Mainland.” Yang Xu said.

In this regard, Zhou Ting said that at this stage due to the immature domestic consumer psychology, second-hand new products are indeed a way for second-hand transactions to circulate, many operators also believe that this is the greatest attraction for second-hand consumers.

"But new luxury products are the best choice for the second-hand market." Zhou Ting bluntly.

She explained that if the new products of second-hand operators directly impact the existing price system of luxury brand stores, the brand may adjust its own price system or take the legal way to fight back. This mode of operation is not sustainable, and the survival of second-hand stores that rely on new products at relatively low prices will be worrisome.

Buy or rent

To use second-hand luxury goods, in addition to buying, there is another more economical way: rent.

In the v2 shop, all eyes are big bags, with only a few jewellery and watches.

Yang Xu said that the second-hand luxury goods trading business in the store is mainly on bags, and leasing is no exception. The rental price of v2 goods is 3% of the price of luxury goods. A deposit equivalent to the full price of the goods must be paid in advance.

Xu ** is a luxury tenant with rich experience. She needs to attend various business occasions frequently. She believes that instead of following the occasion to buy, it is better to rent one at a time, which is economical.

She picked a chanel dinner bag and said: "If you buy yourself, you will usually pick a classic or pass money. You won't buy a limited-use banquet bag. This type of bag is very cost-effective."

Yang Xu concluded that the monthly income of 10,000 yuan, avant-garde fashion, cost-effective young white-collar workers, is the main force of the second-hand luxury rental market. "When young people are temporarily unable to buy luxury goods, they are turning to rent, and temporarily enjoying their use rights is also a rational way of spending."

However, he also said that although the use of second-hand luxury leasing has increased the utilization of luxury goods, the problem that arises is depreciation. Sometimes it is not good to sell a package a few times. Because the wear rate and depreciation expenses are difficult to reach agreement with the tenants, and the high maintenance cost of luxury goods, the store will not rent out new products for a maximum of three days.

Yang Xu said that most Chinese people prefer the ownership of items due to traditional psychology and prefer to save enough money to buy them. The leasing business only accounts for 3% of the store's business share, and the main source of profit is consignment.

Authenticity

Whether new or used goods, buy or rent, unlike brand luxury counters, the key to second-hand luxury goods plagued customers is: authenticity.

“I have limited ability to identify myself and the counters do not provide inspection services for second-hand goods. Even though the shopkeeper vowed to be true, but when buying it, I was very guilty in my heart and I was afraid to buy fakes for greedy and cheap, which would be too expensive. It!". She still looks over and over to check out the selected package at checkout.

According to "2013 China Used Luxury Goods Report", the visibility of fake goods in the second-hand luxury goods market is very high. There are fake products in new and used products, and even merchants have known fake sales. Lv, gucci, chanel, etc. are brands with very high visibility on the market.

In this regard, Zhou Ting said that although companies with relatively large scales, such as Temple Library and Milan Station, have strict appraisal regulations, they are all standards established by enterprises rather than industry standards; the identification of small second-hand stores is mostly based on operations. Experience.

She pointed out that professional luxury product appraisal, maintenance and repair personnel are currently the most lacking talent categories. There is no institution in China to recognize the appraisal effect of luxury appraisers, and the supervision of the second-hand luxury goods industry is vacuum, and it is very difficult for consumers to safeguard their rights. .

Optimistic outlook

Although there are worries on the road to growth, Zhou Ting still said that he is "very optimistic" about the outlook of the second-hand luxury goods industry.

Wealth Quality Research Institute found that first-tier cities are relatively willing to second-hand transactions. 60% of Beijing respondents indicated that they need to cash out their luxury products. This is because the strict economy and anti-corruption have made many luxury goods become idle goods, waiting for being sold twice, and the second-hand luxury industry has not received any country. The impact of the policy environment.

“First-tier cities dominate, and second-tier and third-tier cities expand” to become the main market for second-hand luxury goods. First-tier cities have gradually become more rational in their consumption of luxury goods, and the concept of second-hand consumption has gradually gained recognition. In the future, with the rapid development of the entire Chinese luxury goods market, the prospects of the second-hand luxury goods industry in the second- and third-tier cities are promising.

Zhou Ting explained that to make the scale of the secondary market, we must first mobilize scattered sources of supply. At present, the stock of luxury goods that can be secondarily circulated by Chinese consumers reaches 300 billion yuan***, but only an industry scale of 3 billion yuan has been formed, and the inventory available for revitalization is still very large. With the increase in the willingness to trade, this stock is in stock. Sooner or later will be thrown into the market.

Moreover, Zhou Ting believes that the world's luxury brands only focus on increasing the number of counters in consumer terminals, and neglecting the construction of after-sales service outlets. The future development trend of the second-hand luxury goods market is that e-commerce has become the main channel for second-hand circulation of luxury goods, and offline will become a service center.

“If domestic second-hand luxury goods companies can strengthen comprehensive services, such as identification, after-sales, maintenance and even the creation of damaged parts, they can make up for the shortcomings of the lack of customer service capabilities of luxury brands, and enhance customer trust and consumer loyalty through service platforms. Degree," she said.