China, it's time for the second hand

China is beginning to discover the second hand market. The second-hand phenomenon, estimated by Bcg-Boston consulting group between 30 and 40 billion dollars (between 26.5 and 35.3 billion euros at yesterday's exchange rate) and widely spread in markets such as Europe and America, is still a relatively new concept for the former Celestial Empire. Despite the rapid spread of dedicated second-hand platforms and the openness towards the segment by big players in the sector, it's a tough struggle to convince Chinese consumers that second-hand products or those made from recycled materials might have premium value. According to research by Bluebell group shared with MFF, more than 70% of Asian consumers (Japan is an exception) say that «sustainability is not among their top three decision factors for purchasing premium brands». In Asia, the study continues, most markets (Mainland China at 57%, Taiwan at 67% and Hong Kong at 53%) are not enthusiastic about the idea of buying second-hand fashion apparel and accessories. South Korea (70%) and Southeast Asia (68%) are more predisposed to second-hand while Japan is the least interested country in the category.

However, signs of change are taking place in recent times. For example, on Xiaohongshu, among China's best-known social media and e-commerce platforms, the number of sustainability-related notes has approached 300 thousand. There has also been an increase in influencers and video bloggers promoting green lifestyles, such as Su Yige and One bag. Although with a time lag compared to other markets, the second-hand phenomenon in China is gradually growing, as are eco-friendly brands targeting younger, more issue-sensitive customers. According to PwC's Global consumer insights survey 2021, sustainable consumption has potential in the East. «Concerns about climate change have never been paramount in China but this trend is set to proliferate», the report says. The analysis found that 74% of Chinese consumers (the share of global consumers is 55%) say they intentionally purchase items with eco-friendly packaging or less packaging. The same percentage (global 56%) would choose products with a traceable and transparent origin. More important, 72% (global 54%) said they buy from companies that are environmentally conscious and supportive. «The spread of fashion-related circular economy is not without barriers in China. In terms of reasons influencing their ability to shop greener, 41% of Chinese consumers surveyed cited a lack of sustainable options (global 32%) as the biggest inhibiting factor», PwC's research also highlights. According to the latest available data, the second-hand market peaked in the former Celestial Empire last year, with second-hand platforms such as Xianyu, Zhuanzhuan and Catch fish gaining the most popularity. Finally, thanks to the success of retro styles, more and more Asian consumers are exploring the potential of vintage clothing. (confidential reproduction)