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    Why Gucci Suddenly Entered The Second-Hand Market Of China

    2021/7/14 12:37:00 0

    Gucci

    According to Tianyan, Gucci's affiliated company Gucci (China) Trading Co., Ltd. has added items such as "retail of second-hand daily necessities" in its business scope. Why Gucci suddenly entered the second-hand market of China

    01 second hand website invested by Gucci parent company

    In March this year, the parent company of Gucci, Kaiyun group, together with tiger Global Fund of the United States, invested 178 million euros in vestiaire collective, a second-hand luxury platform. As a result, Kaiyun group obtained 5% equity and board seats.

    Vestiaere collective was founded in 2009 and is headquartered in Paris, France. Clothes, accessories, shoes, bags and other transactions can be carried out on the vestiale collective platform. Since it was launched, it has been widely praised, providing a safe trading platform for fashion people who are keen on big brands.

    After Kaiyun announced its acquisition of vestiaere collective, the market value of its website exceeded $1 billion.

    After more than ten years of development, vestiaere collective has set up branches in Berlin, New York, Milan, Madrid and other countries, covering the entire European region, becoming an authoritative website for second-hand transactions.

    Moreover, every quarter, the platform will release the "hot brands" and "* *" list according to the analysis of sales data and market research.

    02 ? The future of the second-hand market

    Second hand luxury goods have grown rapidly in the past three years, especially during the new crown epidemic. Analysis shows that this is mainly driven by young consumers.

    Vestiare collective, in cooperation with Boston Consulting Group, a management consulting firm, interviewed more than 7000 users in France, Spain, Italy, the United Kingdom and the United States. It was found that the proportion of resale items in their closets increased year by year, with the proportion of second-hand items sold reaching 21%; And 62% of the respondents said they would buy goods more often on second-hand online platforms.

       According to data provided by vestiare collective, the value of the second-hand industry is expected to exceed $60 billion by 2025.

    As one of the luxury giants, Kaiyun group has long seen the potential of the second-hand luxury market. In this regard, Fran ó OIS Henri Pinault, CEO of Kaiyun group, said, "today's second-hand luxury is a potential and stable future trend, especially for young consumers. We should not ignore it. We should seize this opportunity to provide value to our customers and influence the future development of the whole industry.".

    Why is the secondary market booming?

    The boom in the second-hand market is often associated with economic downturn.

    In the era of rapid economic development in Japan in the last century, the national consumption capacity is strong, and the latest global luxury brands and limited edition will be launched first in the Japanese market. Later, Japan's economy was suppressed and entered the downward phase. The sellers of excessive consumption luxury goods and the buyers who paid attention to the price performance ratio quickly promoted the vigorous development of the second-hand luxury goods market in Japan.

    After the outbreak of the new crown epidemic, the global economy fell into negative growth. Activity is limited and the economy is down, affecting the income of most people. As purchasing power declines, more and more people are turning to the second-hand market to buy luxury goods.

    Starting with a classic big brand bag, the price is far lower than the first-hand price, which not only meets the shopping desire, but also can be used as a new investment. Classic luxury goods are not easy to be eliminated by the times, in addition to the brand value, it has more value preservation.

    The circulation of second-hand luxury goods enables the value of goods to be continued, realizing environmental protection and sustainable development. For young people who focus on the concept of environmental protection, it is easier to get support.

    04 China's second-hand market potential?

    Bain, a consulting firm, released the spring edition of the 2020 global luxury industry research report. It is predicted that by 2025, Chinese consumers will contribute about 50% of the global luxury consumption.

    The outbreak of luxury market has led to the domestic second-hand luxury market, and in the economic downturn, the demand for luxury cash makes the second-hand luxury market rise rapidly, and the demand market is gradually increasing.

    In 2018, the Internet accounted for about 68% of domestic second-hand luxury sales, and online became the main trading place of domestic second-hand luxury goods.

    Although the domestic second-hand trading is booming, it is only the beginning. Statistics show that Chinese consumers have contributed more than 40% of the world's personal luxury sales for two consecutive years, but the second-hand circulation rate is only about 3%, far below the world average of 20%.

    "Second hand luxury goods are a big cake to be developed in the Chinese market.  」

    The economic development models of China and Japan are different, but many people think that China may follow the path of the prosperity of Japan's second-hand luxury market in the 1990s, and China's luxury consumption will transition from excessive impulse consumption to cost-effective consumption.

    This prediction is reasonable: in 2020, the total number of orders of vestair collective will double, mainly from the Asian market. The number of new Asian sellers will increase by 98%, and the number of orders will increase by 122%.

    05 ? Problems in Chinese market

    Previously, luxury brands have been trying to avoid the second-hand market, worried that second-hand trading will reduce its high-end positioning and affect sales. But in the general trend, luxury groups have to embrace the second-hand market.

    In fact, it is a contradictory process for luxury goods to shake hands with the second-hand market. In the second-hand luxury market, the problem of * * is that it is difficult to distinguish the true from the false. Luxury goods spend a lot of investment to crack down on counterfeit goods every year, but in the second-hand luxury market, there is a phenomenon of fake goods.

    Chanel has filed a counterfeiting lawsuit against the second-hand luxury website the real real real, accusing the reselling website of selling counterfeit chanel handbags. The profiteering brought by the sale of second-hand luxury goods makes many businesses choose to take risks.

    Due to the lack of sufficient appraisal personnel, lack of system standards, there is a big gap in the identification of authenticity, which leads to the immature development of China's second-hand luxury market. For fear of buying fake goods, many people dare not buy second-hand luxury goods.

    In addition, most Chinese sellers have not yet awakened. Zhou Ting, President of the VIP Research Institute, said that the main problem in China's second-hand luxury market is how to revitalize the stock in the hands of consumers. In fact, the market has not been fully activated. Many people who own luxury goods, though idle, still feel that it is unnecessary or unwilling to sell them.

    Whether Kaiyun group's entry into China's second-hand market can promote the further awakening of China's market still needs a question mark? Moreover, domestic second-hand trading already has mature apps such as salted fish and red Brin, so it is not easy to get a share of the market.


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