China Second-hand Luxury Market Report.docVIP

China Second-hand Luxury Market Report 　　Due to the influence of various economic and social factors， the growth of the Chinese luxury goods market slowed down in 2013. How did the “second-hand luxury market” react to this？ Fortune Character Institute spent a whole year visiting more than 200 second-hand luxury goods stores in Beijing and Shanghai. Through analyzing nearly a thousand products’ retail prices and second-hand market prices and interviewing second-hand luxury goods store managers and 573 consumers， this report provides an in-depth analysis to China’s current second-hand luxury market. 　　 A. Overview of 2013 China Second-hand Luxury Market 　　1. 300 Billion RMB Market Size and 3 Billion RMB Industry Scale 　　As the world’s most significant buyers of luxury goods， Chinese consumers represent the major part of global luxury consumption. Because a high proportion of the products acquired are sent out as gifts， the result is a large quantity of unused second-hand luxury products in the market. According to a study conducted by The Fortune Character Institute， the total value of second-hand luxury products was approximately 300 billion RMB and the number is still increasing at a high rate of 20%. 　　But due to current consumer attitudes and under-developed market conditions， until the first half of 2013， the trading value of the second-hand luxury market was only about 3 billion RMB. Because the market base is rather small， the growth rate of the second-hand luxury market is faster than the luxury goods business， increasing at a rate of 30% per year. Most of the second-hand luxury companies were running on a small scale and on the edge of bankrupt. The entire business model is lacking in creativity and core competence. 　　2.Beijing Leading Industry Developments， Tier-1 Cities Developed Faster Than Tier-2/3 Cities 　　Fortune Character Institute found out that the willingness to buy second-hand luxury goods was strongest in tier-1 cities， with Beijing on