Do You Dare To Buy Second-Hand Luxury Goods?

The 2011 latest report released by the World Luxury Association said that China's mainland last year luxury goods market Total consumption has reached US $10 billion 700 million, accounting for 1/4 of the global share. The report also gives examples: France Hermes Statistics show that 38% of sales in 2010 came from China.

The prosperity of the luxury goods market directly exploded the hot circulation of second-hand luxury goods. "The generation of second hand luxury goods to some consumers who do not have strong strength and consume large quantities of luxury goods eliminate some of the barriers to price consumption and provide an opportunity to achieve high material life." Hong Tao, director of the Institute of Business Economics of Beijing Technology and Business University, thinks. Milan station, consignment consignment, Temple store consignment, Mi Lanxuan, Milan fashion, V2... The emerging second-hand brand retail store has springing up all night. The new rich class's love for luxury goods and the urgent need to deal with second-hand luxury goods are making the market appear springtime.

It is understood that the opening of a main second-hand luxury stores retail shop start-up funds as long as several hundred thousand dollars, individual small cities or even 100 thousand yuan is enough, as long as the business development to achieve capital flows, monthly profits generally exceed 5 digits, and large brand stores are even more amazing profits.

At present, some Japanese second-hand luxury retail enterprises are aiming at China's emerging luxury market. BRAND OFF, which has nearly 20 years of history, has opened its first store in China recently in Nanjing West Road, Shanghai. According to a person close to the company, the company has made adjustments to the mainland market, with bags, watches and jewellery as its main products.

Yan But this is already a hot gold rush.

Absence of transaction standard

At present, there are mainly three ways of selling second-hand luxury stores in China: repurchase, consignment, and replacement.

As one of the earliest developers, Milan station has bought back all its products. Yao Junda, founder of Milan station, has explained this way of operation: the exclusive and buyout pre-sale and after-sale services, which cater to consumers' shopping psychology and shopping needs.

An insider told reporters that buyout demand for enterprise funds is large, the level of personnel requirements are high, while the risk is relatively large. But on the other hand, the buyout is the most profitable, because the ownership of the luxury goods has been transferred, so there is little dispute with the seller.

For most new small and medium retailers with limited financial strength, consignment is the main mode of cooperation, which is also the most widely used way of selling second-hand luxury goods in China. Many consumers are also more willing to choose the way of consignment, because the price of the consignment is higher than the price of the repurchase.

Free trade and negotiated bargaining are the two most prominent characteristics of the second hand luxury business model. Lin Tao, the owner of V2, a second-hand luxury retailer, has seen the rise of the second hand luxury market in China. But no relevant legal regulation has caused him a headache.

"There is no explicit provision on how much to sell. We only negotiate a price with our customers." He worried that if the scale of the industry expanded, it would lead to unfair competition. {page_break}

　　 Urgent standards

A luxury purchase survey shows that in the second hand luxury purchase, the "product authenticity" and "after sale service" are most concerned by consumers, and the former is more concerned. At present, in the second hand luxury store in China, the appraiser is basically a shopkeeper himself. The product is entirely empirical, and there is no such professional skill training and certification as "luxury appraiser" in China.

No standard practitioners are likely to become the bottleneck restricting the development of the industry. A shopkeeper complained: "always wanted to open a branch store or meet the requirements of those who wanted to join, but because of the lack of appraisers, they dare not, afraid of affecting the quality."

A big shop admitted that he had received fake goods in his early operation because of lack of experience, but later he destroyed it himself. It is hard to conclude whether all companies face such self discipline and bottom line in such a situation.

"What we have identified will not be recognized in another store, or the counter will probably be a fake." An appraiser said that for the identification of second-hand luxury goods, companies currently have their own set of standards, and the degree of their identification also depends entirely on the professional competence of the appraisers. "There is a lack of a credible industry standard."

Relevant experts worry that in the current chaotic competition, enterprises are going to spell prices, while low prices will easily lead to the prevalence of counterfeit goods, so that the ultimate interests will be damaged by the whole industry. "If we want to make the whole industry chain and standardized, we can develop healthily and orderly." She believes that the current luxury goods circulation enterprises need to embrace together to promote the introduction of industry regulations, carry out unified functional training and personnel training, and have a good relationship with the upstream luxury brands.