Second Hand Luxury Market, From Guerrilla Warfare To High-End Scale

Grab the regret bag

Tuyuan: Research Report on the development of China's second hand luxury market in 2020

Generation Z, represented by the post-95s and post-00s, is more receptive than the 24-36-year-old consumers. They are more willing to consume "orphans" reflecting their personal style as a way of self-expression than new products.

Like xiaonai's "a glance at this grass woven cowhide", many classic and limited versions that are no longer available have become the favorite bag consumer goods in Z era. However, in koala shopping, the chance of the limited dice of Hermes Kelly and LV in the 1990s to encounter "regret pack" again may be greatly increased.

Since June this year, the growth rate of second-hand luxury goods in koala has reached 400%. The month on month growth during 618 has increased by more than 500%, and the influx of young consumers has made the platform gain a lot of discussion on social media.

For example, Hermes, which has gradually increased the distribution ratio, has relatively sufficient inventory in the big black room shop of Koala shopping, with up to 200 online products covering Birkin, Kelly, Kangkang and other models, and the quality of products varies from 90% to 98%.

Photo source: bag (sister Lisa)

In addition to the big black house, reco, a member of Japan's AACD (Japan anti counterfeit and Shoddy Commodity Circulation Association) association and Japan's online Zhonggu store, reco, also settled in koala. Unlike Hermes and LV in big black house, reclo is relatively well stocked in Chanel, Gucci and other brands.

In addition to the popular categories of bags and bags, the supply of watches, accessories and other categories is relatively perfect. Menggu, general manager of Koala overseas shopping, said that the current commodity combination strategy of the platform was determined after detailed research on the market and users. Beauty and luxury products are the two key breakthrough areas at present.

If you open the app slide page, you will find that there are more than 19 brands of second-hand luxury goods on koala shopping, and there are more than 3000 selected bags, and a considerable number of them are unique, with both difference and uniqueness.

Obviously, a second-hand luxury trading platform to meet the needs of diversified segmentation is gradually taking shape.

The appraisers are hot, but cold

An industry standing in the wind, the most external performance is the rapid rise of market size and labor demand. The rapid expansion of second-hand luxury goods in China in recent years is slightly different from the slow development mode of Japan.

The most typical difference is the training mechanism of luxury appraisers.

It has been 23 years since Hiroshi tanyama worked as a luxury appraiser in the big black house. He has a relatively unique view on bags, watches and accessories. He will also wear a suit, tie and gloves to identify the authenticity of a bag within half an hour.

It's not easy to be an appraiser.

Before he took office, he worked as a sales consultant in the local offline stores for more than one year, and received strict training on brand and product knowledge. Even if he later became an intern appraiser, he must keep no fake purchase record for more than three years before he can finally become the official appraiser of big black house.

Ogawa Kohei, chairman and general manager of big black house Holdings Co., Ltd., said in an interview with East West entertainment that long-term experience has enabled the professional appraisers of big black house to deal with some difficult tasks and even have the ability to identify (authenticity) beyond machines.

"For example, we have an appraiser who can identify the authenticity of 5000 different commodity categories every day. He can do this by feeling it or smelling it. Only people can do this."

With the development of domestic second-hand luxury market, the demand for appraisers is increasing《 The 2020 Research Report on the development of China's second-hand luxury market points out that the total number of appraisers in 2019 is about 2.3 times of that in 2018, but the total number of professional appraisers in China does not exceed 50. To a certain extent, this led to the rapid chaos of the appraiser industry.

A large number of so-called "professional appraisers" have sprung up on various social platforms, but most of them are not professional. Xiao Nai said that most of the students who studied Luxury Management in Italy and France went to luxury companies or large international organizations, and they also preferred the United States, Britain, Japan and France, where luxury business is relatively developed.

"Although the 23 years of Mr. makoyama's 23 years sound like a long time, his career is made up of time and experience." this is also the reason why xiaonai chose to go from Europe to Japan for postgraduate study. Not everyone can sit on this kind of cold stool. Nowadays, it is hot because many people who are halfway out of home feel "profitable".

If we leave aside the professional quality of appraisers, we can trace the popularity of this profession. In fact, the essential logic is very clear. If consumers' concerns about the authenticity of goods can not be solved, the circulation efficiency of the second-hand luxury market will certainly be affected.

If you have the endorsement of a professional appraiser like Hiroshi Taniyama, you will attach a "fidelity card" to the goods, and the goods identified by the big black room are also equipped with security buckles. From this point of view, the introduction of big black house by koala shopping actually solves the source trust problem of consumers.

Second hand luxury track reshuffle

It is not only the problem of product fidelity at the user end. From the perspective of dismantling the industrial chain, there are irreplaceable thresholds in all aspects, such as the differentiation of new and old product levels, the setting of price system, and the follow-up logistics services. This requires an all-round improvement of the service capacity of large platforms.

Taking luxury bags as an example, collision, scratch or deterioration of hardware accessories during transportation will affect the new and old grading of products, and cross-border logistics will inevitably encounter uncertain time cost caused by bonded customs clearance and other issues.

However, at present, the big black house and reclo of Japan's large-scale mediaeval stores in koala can be delivered to users as soon as possible through overseas direct mail.

In terms of the inherent conditions of Koala shopping, if it moves from the middle and lower reaches of the entire industrial chain to the upstream, and even extends to the most upstream used luxury recycling business, the future imagination space is huge.

Although at present, idle fish and transfer can provide trading places for second-hand idle goods, it is difficult for multi category platforms to deeply cultivate in vertical categories, especially in the second-hand luxury market, which is full of fake goods and high unit price. Previously, the development in China's market was too savage. Each platform is characterized by decentralized and small-scale guerrilla warfare.

The only way to become the next winner is to have the exclusive supply capacity, professional authenticity identification ability and stable cross-border logistics distribution capacity.

In the context of the development of Japan's second-hand luxury platform, the development logic of Koala shopping also has a path to follow.

Previously, Japan's online trading of second-hand luxury goods was also monopolized by big platforms such as Yahoo. The offline trading scenarios like big black house took another development route, and the two parallel to each other, and there was no direct competition conflict.

But when mercari came out, even though each transaction generated a commission of up to 10%, this did not stop consumers' enthusiasm for online transactions,

In the myth of Tokyo's sudden wealth, Japanese consumers have accumulated a strong purchasing power of luxury goods, including the purchase of second-hand luxury goods. On the one hand, it is the strong consumption ability, on the other hand, it is also the maturity of consumption concept.

But the situation in China is just beginning. The second-hand market, which accounts for less than 5% of luxury goods transactions, is far from the penetration rate of second-hand luxury goods transactions, which often account for more than 20% in the United States, Japan and the United Kingdom.

However, due to the slow recovery of Japan's offline market and the rapid outbreak of China's luxury market in recent years, when the global luxury market sales are expected to fall by 23%, the share of mainland China in the global market has almost doubled, jumping from 11% in 2019 to 20% in 2020.

It's clear that luxury goods are in the ascendant in China.

Based on these data, Bain consulting set this trend as irresistible in its report "China luxury market 2020". Koala's judgment is also consistent with it.

Menggu especially mentioned that the great potential of the medieval market lies in that it can not only provide a window for consumers to experience the classic fashion design of luxury brands, but also provide a more economic and sustainable way for entry-level consumers to buy. It is in this aesthetic system and consumption context that koala shopping provides diversified, unique and trendy choices for high net worth women.

According to other reports, China's luxury goods stock accumulated in the past 10 years has reached 4 trillion yuan. Once this market circulates, there will be great opportunities.

However, the vertical problems in the single industry chain, or the professional service ability in the circulation link, which could not be taken into account by the large platform, are now bridged in the cooperation between koala Haigou and big black house and reclo.

When the source of goods is enough, the products are complete enough, the logistics is fast enough, and the service is good enough, consumers have no reason not to choose it. In the sales and service market of second-hand luxury goods, once a runner speeds up running and tries to become a benchmark, the situation on the whole track will also be shuffled.